Rada announces over 2$ million in new orders

31 July, 2016

Israeli avionics and radar developer Rada announced over $2 million in new orders. Rada’s stock, which was on the verge of being delisted from NASDAQ, has had a rough ride in the last few months

Israeli avionics and radar developer Rada announced over $2 million in new orders. Rada’s stock, which was on the verge of being delisted from NASDAQ, has had a rough ride in the last few monthsSlide-2

RADA Electronic Industries announced the receipt of follow-on production orders for airborne recorders and various avionics systems, with a total value exceeding $2.0 million. These systems will be installed onboard manned and un-manned aircraft and helicopters.

The orders were placed by leading Israeli defense manufacturers, all of which are long-term avionics systems’ customers for RADA. Among them are the Israeli Ministry of Defense / Israeli Air Force, Israel Aerospace Industries and RAFAEL advanced defense systems.Delivery of the products is scheduled to begin during the fourth quarter of 2016 and deliveries are expected to conclude by mid-2017.

RADA’s CEO, commented: “These repeat production orders emphasize our strong presence in the airborne digital-recorder market. It is also a testament to our long-term strategic relationships with leading domestic aerospace and defense customers. We continue to maintain a stable stream of revenues from our avionics product line.”

Turbulent times

Rada’s latest announcement comes at a very turbulent time for the Israeli company. A few months ago, the avionics and radar developer was on the verge of being delisted from NASDAQ trade. The company has been virtually saved by a $4 million infusion from the private DBSI fund, followed by announcements of possible upcoming deals with US and German armed forces. According to Rada, the companies system may be integrated into German purchased Heron drones as well as American armored personnel carriers The Company’s stock skyrocketed following these events, only to plunge after the publishing of very lukewarm earning reports on July 21 2016.

At the time, Zvika Alon, Rada’s CEO commented that “As we reported last quarter, we recently completed a financing transaction with DBSI, a well-established and highly regarded Israel-based investment company. In addition to their strong experience with growing companies, DBSI’s investment provides us with sufficient working capital for us to resume to implement our strategic growth plan, as well as to support our R&D and increased marketing activities. The results of the second quarter marked an improvement over those of the prior quarter, but were still impacted by the decline in new orders that we experienced during the second half of 2015”.

It was recently reported in the media that DBSI intends capitalize the surge in the company’s share for a $25 million funding round. It remains to be seen if this intention materializes considering the volatility of Rada’s share.

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