SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of
March 2006
RADA ELECTRONIC INDUSTRIES LIMITED
(Name of Registrant)
7 Giborei Israel Street, Netanya 42504, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-____________
This Form 6-K is being incorporated by reference into the Registrant's Form F-3
Registration Statements File Nos. 333-12074, 333-115598, 333-117954, and
333-127491 and Form S-8 Registration Statement File No. 333-111437.
RADA ELECTRONIC INDUSTRIES LTD.
6-K Items
1. Press Release re RADA Electronic Industries Announces Full Year 2005
Results dated March 8, 2006.
ITEM 1
Press Release Source: Rada Electronic Industries Ltd
RADA Electronic Industries Announces Full Year 2005 Results
Wednesday March 8, 7:23 am ET
NETANYA, Israel, March 8 /PRNewswire-FirstCall/ -- RADA Electronic Industries
Ltd. (Nasdaq: RADI - News) today reported its financial results for the year
ended December 31, 2005. The company reported a net loss of $2.3 million or
$0.10 per share (on a fully diluted basis). This compares with net income of
$822,000, or $0.03 per share (on a fully diluted basis), for the year ended
December 31, 2004. Operating loss for the year was $1.8 million compared with
operating profit of $1.0 million in 2004.
Revenues in 2005 were $13.4 million, a decrease of 5% from 2004. The gross
margin on sales also decreased from 27% in 2004 to 8% in 2005. The decrease in
gross margin is attributed to the high percentage of development programs, which
programs have a lower profit margin than the sales of pre-existing products
offered by the Company.
Looking forward to 2006, we believe that the development efforts over the last
three years will be reflected in additional sales during 2006. In addition to
our pre-existing products of FACE (DATA Recorder) and CATS (Commercial Aviation
Test Station), we now also offer off the shelf our Network Centric Digital
Recorder (NCDR), Ground Debriefing Systems (GDS), Heads Up Display (HUD)
Cameras, Rear Sentry Cameras and several core avionics computers. In addition we
have increased our marketing efforts towards our strategic markets: US, India,
and Israel. In the US we have received an order to supply NCDRs for the T-45. As
a result of our acquisition in 2005 of the assets of Vectop, Ltd., which had
existing sales to India, we are positioned to enter that market. We have also
won a contract to supply our NCDR and HUD Camera for the Sea Harrier in India.
As a result of our broader product range, we have begun to see an increasing
number of RFP's that we are able to respond to with bids.
About RADA
RADA Electronic Industries Ltd. is an Israel based company involved in the
military and commercial aerospace industries, with 110 staff. The company
specializes in Avionics, Ground Debriefing Stations (Video, ACMI and
Maintenance) and Automatic Test Equipment.
Note: Certain statements in this press release are "forward-looking statements"
within the meaning of the Private Securities Litigation Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially. Such risk uncertainties and other
factors include, but are not limited to, changes in general economic conditions,
risks in product and technology developments, market acceptance of new products
and continuing product demand, level of competition and other factors described
in the Company's Annual Reports on Form 20-F and other filings with the
Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
December 31,
2005 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 350 $ 3,464
Trade receivables (net of allowance for
doubtful accounts of $ 6 and $ 221 at
December 31, 2005 and 2004, respectively) 4,920 1,643
Other receivables and prepaid expenses 156 208
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,396 1,385
Inventories 1,942 1,824
Total current assets 8,764 8,524
LONG-TERM RECEIVABLES AND DEPOSITS:
Long-term receivables 983 988
Long-term restricted cash 1,017 1,002
Leasing deposits 72 94
Severance pay fund 1,614 1,638
Total long-term receivables and deposits 3,686 3,722
PROPERTY AND EQUIPMENT, NET 3,931 4,283
OTHER ASSETS:
Intangible assets, net 2,469 1,709
Deferred charges, net 40 59
Total other assets 2,509 1,768
Total assets $ 18,890 $ 18,297
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank credit and current maturities
of loans $ 877 $ 14
Trade payables 1,671 1,080
Other payables and accrued expenses 3,217 3,612
Deferred revenues 50 488
Billings in excess of costs and estimated
earnings on uncompleted contracts 391 1,065
Total current liabilities 6,206 6,259
LONG-TERM LIABILITIES:
Convertible note 2,560 2,346
Accrued severance pay 2,009 2,063
Total long-term liabilities 4,569 4,409
MINORITY INTERESTS 380 397
SHAREHOLDERS' EQUITY:
Share capital
Ordinary shares of NIS 0.005 par value
- Authorized: 47,500,000 and 45,000,000
shares at December 31, 2005 and 2004,
respectively; Issued and outstanding:
26,144,027 and 20,448,364 shares at
December 31, 2005 and 2004, respectively 116 110
Additional paid-in capital 64,579 61,851
Warrants 2,321 2,223
Accumulated deficit (59,281) (56,952)
Total shareholders' equity 7,735 7,232
Total liabilities and shareholders' equity $ 18,890 $ 18,297
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Year ended Three months ended
December 31, December 31,
2005 2004 2005 2004
(unaudited)
Revenues:
Products $ 11,303 $ 11,123 $ 3,887 $ 2,751
Services 2,118 3,037 363 751
13,421 14,160 4,250 3,502
Cost of revenues:
Products 10,829 8,669 3,575 2,162
Services 1,481 1,618 387 354
12,310 10,287 3,962 2,516
Gross profit 1,111 3,873 288 986
Operating expenses:
Marketing and selling
expenses 927 738 210 168
General and
administrative expenses 1,939 2,116 498 561
Total operating
expenses 2,866 2,854 708 729
Operating income (loss) (1,755) 1,019 (420) 257
Financial income
(expenses), net (624) (248) (160) 73
Other income, net 33 23 33 6
(2,346) 794 (547) 336
Minority interests in
losses of subsidiary 17 28 3 10
Net income (loss) $ (2,329) $ 822 $ (544) $ 346
Net income (loss)
per share:
Basic net income
(loss) per share $ (0.10) $ 0.04 $ (0.02) $ 0.02
Diluted net income
(loss) per share $ (0.10) $ 0.03 $ (0.02) $ 0.01
No. of shares used in
computing fully
diluted net income
(loss) per share 22,513 23,684 24,883 23,556
Company Contact:
Elan Sigal (Chief Financial Officer)
Tel: +972-9-892-1129
elan_sigal@rada.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Rada Electronic Industries Ltd.
(Registrant)
By: /s/Herzle Bodinger
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Herzle Bodinger, Chairman
Date: March 8, 2006