RADA ELECTRONIC REPORTS RESULTS
RADA ELECTRONIC REPORTS RESULTS HERZLIYA PITUACH, Israel, Nov. 14 /PRNewswire/ -- Rada Electronic
Industries Limited (NASDAQ: RADIF) reported its unaudited consolidated financial results for the three and nine months periods ended Sept. 30, 1991.
Consolidated revenues for the third quarter ended Sept. 30, 1991 were $7,080,000 as compared with $6,157,000 in the third quarter of 1990. Net income for the 1991 period was $374,000 or 9 cents per share as compared with $482,000, or 15 cents per share, for the third quarter of 1990. Consolidated revenues for the nine months ended Sept. 30, 1991 reached $19,710,000 as compared with $17,702,000 for the comparable 1990 period. Net income for 1991 nine month period was $780,000 or 20 cents per share, as compared with net income of $1,190,000 or 37 cents per share, for the 1990 period. For the nine months ending September 1991, over 60 percent of the company's revenues were derived from export and international sales, approximately 50 percent of which represent U.S. related business. Haim Nissenson, president of Rada, pointed out that the quarter to quarter earnings results in 1991 have been quite gratifying. Third quarter profits were approximately 140 percent better than the $140,000 earned in the first quarter and approximately 46 percent better than the $266,000 earned in the second quarter of this year. The company expects that the fourth quarter of 1991 will be profitable. Nissenson also stated that the company's working capital position was substantially strengthened in the third quarter of this year with the sale of 540,000 ordinary shares for approximately $3.5 million to a group of Israeli institutional investors. In addition the company sold approximately $935,000 of five-year convertible debentures, bearing as interest of LIBOR plus 2 percent, to three institutional investors in Israel. Interest is payable at the end of the term of the debentures. The convertible debentures may not be converted before two years and are convertible at a range of $7.75 to $17.75, depending on the market price of the company's shares for the three-months prior to conversion. If the debentures are converted, all accrued interest will be extinguished. The company made it first sales of its commercial ATE products to airlines in the third quarter. The company is currently expanding its marketing activities in the commercial aviation market and expects to sign additional contracts in the near future. As part of its marketing program the company is establishing demonstration and development centers in Europe and in the U.S. for its commercial ATE product line. The company has begun to accelerate its entry into the marketplace with the hiring of a group of scientists and engineers who are in the process of programming the software applications necessary to offer a broad range of ATE test products. These scientists and engineers are principally composed of recent immigrants from the Soviet Union. Rada, an Israeli based corporation with subsidiaries in the U.S. and Europe, is engaged in the design, development and manufacture of computers, avionic equipment and automated test equipment and the distribution and in sale of electronic components. -0- 11/14/91 /CONTACT: Public relations department of Rada, 212-734-8340/ (RADIF) CO: Rada Electronic Industries Limited ST: IN: CPR SU: ERN SH-SM -- NY064 -- 4487 11/14/91 13:37 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 14, 1991|
|Previous Article:||RELIANCE GROUP HOLDINGS REPORTS THIRD-QUARTER RESULTS|
|Next Article:||SECURITY FINANCIAL RETAINS INVESTMENT BANKER|