Elbit Systems was awarded an approximately $390 Million Contract to provide an array of Ground Electronic Intelligence Capabilities to a European Country. The company reported that the contract consists of various intelligence capabilities and communications and command and control solutions (C⁴I), will be performed over a period of three years. Bezhalel Machlis, President and CEO of Elbit Systems said: “We are providing the customer with a unique intelligence solution, based on cutting-edge technologies, operational know-how and experience.”

Elbit Systems from Israel provides a wide range of defense, homeland security and commercial programs throughout the world. Revenues for 2016 were $3.26 billion. Revenues in the first quarter of 2017 were $749 million. The Company’s backlog of orders totaled $7 billion. Approximately 70% of the current backlog is attributable to orders from outside Israel.

Europe is a Growing Market

Elbit did not disclose the client, but during the last earning call, Machlis said that Europe is a growing opportunity for Elbit Systems. “We see many opportunities for us and mainly in North America as well as in Europe and in Asia-Pacific.” Sales to Europe grew from $498 million in 2015 to $641 million in 2016.

In its annual report for 2016 Elbit said that the leading contributors to revenues were the airborne systems and C4ISR systems.”The increase in the C4ISR systems was primarily due to an increase in sales of command and control systems and radio systems in Europe, Asia-Pacific and in Israel.”

It is also not clear if Ebit will supply a combat or HLS solution to the European country. It is interesting to note that lately it has announces a new line of advanced EO Ground Surveillance Systems for wide-area Intelligence Gathering, called Groundeye. It is a fully-programmable alerting application based on the “safe zone” area, allowing operators to be notified for specific/unusual events.

At the heart of the product line are a panoramic mast-mounted/tripod mounted sensor head that houses the system’s cameras and front-end electronics, an advanced computer processing unit, high-speed image analysis applications (e.g tracking and VMD) and a simplified user control station that is interoperable with the user’s existing command and control center.

RADA Electronic Industries (NASDAQ:RADA) from Netanya, Israel begins to fulfill its promises: Two months ago it published gloomy annual 2016 report with of total revenues of $12.8 million compared with revenues of $14.0 million in 2015.  Gross profit totaled $1.4 million compared with gross profit of $2.4 million in 2015, and the company’s Operating loss reached $3.4 million in 2016, compared with operating loss of $2.7 million in 2015.

But those numbers didn’t prevent the company to send a positive message to its investors and clients. “Given its current backlog of orders in hand, for tactical radars and avionics, it expects significant revenue growth in 2017.” Now the message is backed by numbers: Revenues totaled $4.7 million in the first quarter of 2017, up 91% compared to $2.5 million in the first quarter of 2016. Gross Profit totaled $1.7 million in the quarter (gross margin of 35.7%), compared $6,000 (gross margin of 0.2%) in the first quarter of 2016.

Annual Growth of 50%

Dov Sella, RADA’s Chief Executive Officer said the results reflects the success of the turnaround of the company, “focused towards sales of our radar technology. Looking ahead and given the timing of certain orders, we expect the second quarter to be strong.  On the back of our expectations of a particularly strong first half of 2017, we are increasing our full year revenue guidance towards $20 million for 2017, representing a year over year growth of over 50%. Furthermore, we expect to return to profitability in 2017 on a full-year basis.”

The investors were fully convinced: following the report, RADA’s share price in NASDAQ jumped more than 14.5%, from $1.24 to $1.41, and gave the company a market value of approximately $33 million. If Dov Sella predictions are valid – it seems only the beginning – from the market point of view.

Tactical Radar is an Engine of Growth

“Strategically, we have also made significant progress with our growth engine, the Software Defined Tactical Radars. At the end of the quarter, we signed a strategic distribution agreement with a leading Western-European defense systems provider, to integrate our radars into their Very Short Range Air Defense (VSHORAD) systems. Furthermore, our cooperation with DRS Technologies continues. We see opportunities with great potential for our technology, especially in the U.S. market.”

Detecting Drones and RPG’s

RADA Electronic Industries Ltd. is an Israel-based defense electronics company. The Company specializes in the development, production, and sales of tactical land radar for force and border protection, and avionics systems (including inertial navigation systems) for fighters and UAVs. The company believes that its future will be determined by its tactical radar technology: Multi-Mission Hemispheric Radar (MHR) and the Compact Hemispheric Radar (CHR) perfectly adapted to the growing market of Active Protection Systems (APS) on armored vehicles. The APS provides armored vehicles the needed protection against rocket-propelled grenades (RPG), anti-tank guided missiles (ATGM) and tank shells.

RADA’s MHR and CHR radars are S-band, software-defined, pulse-Doppler, active electronically scanned array radars. They introduce beam forming capabilities and advanced signal processing, which can provide various missions on each radar platform. The radars are compact and mobile, enabling multi-missions on each radar. So far, RADA has sold over 150 radar systems to various global customers.

Metro Skyways Ltd., a subsidiary of Urban Aeronautics plans to develop of a four-passenger, Vertical-Takeoff and Landing (VTOL), flying car based on Urban Aeronautics’ internal rotor technology, Fancraft™. Metro Skyways was established by Urban Aeronautics in 2013 to focus exclusively on developing Fancraft for the manned, civil market. CityHawk will be designed to meet FAA/EASA certification standards for manned VTOL aircraft.

CityHawk will combine a compact, car-sized design that has a four passenger capacity, no exposed rotors or wings, no batteries and potential for zero carbon emissions. It will be fueled by Hydrogen and its only byproduct is pure H₂O. The development of CityHawk is expected to take five years and draws on UrbanAero’s experience in developing and flight testing its 1 ton, unmanned Cormorant that is being developed by the company’s subsidiary, Tactical Robotics Ltd.

Based on Cormorant’s proved technology

CityHawk will be similar to Cormorant in shape and size. Cormorant has so far accumulated in excess of 200 flight tests. CityHawk’s first public demonstration will take place at an airshow shortly after completion of development. While CityHawk will initially be piloted by a human pilot, the vehicle’s flight control and flight management systems will be capable of a high degree of autonomy. This technology is being developed and tested on Tactical Robotics’ Cormorant prototype which already flies fully autonomously. As the technology of autonomy and regulatory infrastructure mature, CityHawk will eventually transport passengers robotically.

The company reported that all CityHawks will be equipped with a standard rocket deployed parachute that will bring them safely down to the ground should any flight critical event occur while airborne. Urban Aeronautics is currently talking with potential partners and investors interested in participating in funding the CityHawk project.

Saudi Arabia has decided to build its own defense industry, as a part of national plan to modernize its economy. The Saudi Arabian Public Investment Fund (PIF) has announced last week the creation of a new national military industries company, called Saudi Arabian Military Industries (SAMI). According to the Saudi National Press Agency, SAMI complex will manufacture products and provide services across four business units: Air Systems, Land Systems, Weapons & Missiles and Defense Electronics.

From UAVs to Radars and Electronic Warfare

The Air Systems company will include maintenance and repair of fixed-wing aircraft as well as manufacturing and repair of unmanned air vehicles. The Land Systems company will manufacture and repair military vehicles. The Weapons & Missiles company will provide ammunition, and the Defense Electronics company will develop and build radar systems, smart sensors, communication systems and electronic warfare systems.

SAMI is a wholly government-owned, and aims to become one of the world’s top 25 defense companies by 2030. It will directly contribute around SAR 14 billion ($3.7 billion) to the Kingdom’s GDP in 2030, invest over SAR 6 billion ($1.6 billion)in research and development by 2030, and create over 40,000 jobs, mostly engineering and technical jobs. By partnering with universities, SAMI will provide students with apprenticeships and careers in technologies which were previously unavailable in the Kingdom.

Toward 50% Self-dependence

“SAMI will contribute to diversifying the Saudi economy for the 21st century by reducing dependence on oil, while protecting and strengthening national security,” SPA reported. Minister of Defense and Chairman of the Public Investment Fund, Prince Mohammad bin Salman bin Abdulaziz Al Saud (Above photo with President Trump this week),  said that SAMI will be a major contributor in achieving the goals set out in Vision 2030, which states that 50% of Saudi Arabia’s military procurement spending will be localized.

“While the Kingdom is one of the world’s top five spenders on security and defense overall, only around 2% of our military procurement is domestic.” SAMI’s four business units closely complement the Kingdom’s future military requirements and build on existing local capabilities. SAMI will establish companies through joint ventures with global original equipment manufacturers (OEMs), as well as cooperating with local military companies. SAMI will consider creating new business units to ensure it is aligned with the latest developments in the military industry.

TaxiBot, the semi-robotic pilot-controlled vehicle for dispatch towing of the Israel Aerospace Industries (IAI) , obtained EASA certification for operation with the Airbus A320 aircraft family. The certification includes the approval for engine start-up during taxi for all types of the A318-319-320-321 aircraft including the NEO variants. The certification is valid also for the FAA and it joins existing certification for operation of the TaxiBot with all types of the Boeing 737 aircraft.

The certification for both A320 and B737 families covers more than 70% of the entire worldwide commercial airlines flights, which could be provided with TaxiBot service. TaxiBot is a semi-robotic pilot-controlled vehicle, which was designed to transport commercial airline aircraft from terminal gates to the runway and back, without using the airplane’s own engines. TaxiBot started dispatch-towing commercial Lufthansa Boeing 737 (Classic) flights departing out of Frankfurt Airport in November 2014.

The TaxiBot provides taxiing services and is controlled by the aircraft pilots themselves by using airplane tiller and brake pedals, while the aircraft engines are stopped. The engines start only shortly before takeoff. Shaul Shahar, General Manager of the Military Aircraft Group at IAI, said the certification of the A320 is a significant milestone for the TaxiBot program. “Even with the current low fuel price, the saving for airlines accumulate to millions of dollars per year. The option to optimize engines start whenever needed improves operations beyond the original plan, while maintaining the contribution to the global environment”.