Rada reported rapid growth in sales during the first quarter of 2019, during which time, company sales rose 44% to $8.7 million — thanks to a significant growth in its tactical radar systems.
Gross profit totaled $3.2 million in the quarter (or 36% of revenues), an increase of 45%, compared to gross profit of $2.2 million in the first quarter of 2018 (or 36% of revenues).
Operating loss was $0.6 million in the quarter compared to operating income of $0.2 million in the first quarter of 2018.
Net loss attributable to RADA’s shareholders in the quarter was $0.5 million, or $0.01 per share, compared to a net profit of $0.2 million, or $0.01 per share, in the first quarter of 2018.
As of March 31, 2019, RADA had net cash and cash equivalents of $21.5 million compared to $20.8 million as of year-end 2018.
The Rada’s loss is partially a result of foreign currency fluctuations.
Dov Sella, RADA’s Chief Executive Officer commented, “We are very pleased with our continued top line growth, based on revenues from our software-defined tactical radars. These are early fruits from the significant and ongoing investments we are making in R&D, and sales and marketing. Anticipating growth in the US, we are establishing an additional radar production line, to become active this year. As 2019 progresses, we anticipate that the radar market will transform from its current emerging phase to a programs-of-record phase, where we will start to see the generation of significant backlog, primarily from the US.”
Continued Mr. Sella, “Our strategy very much remains on track. Considering the strong growth this quarter and looking forward over the remainder of 2019, we continue to expect revenues in excess of $40 million for the year. This represents year-over-year growth of at least 43%, driven primarily by accelerating sales of tactical radars.”