RADA Electronic Ind. Ltd. (NASDAQ:RADA) recently announced that its Israel Military Industries (IMI) had been selected by the U.S. Army to provide active protection for the army’s armored personnel carriers. The company further disclosed that the protection is based on IMI’s Iron Fist system that also incorporates RADA CHR system.
However, the company said that it was still waiting for a firm order from the U.S. Army for its armored personnel carrier active protection system. RADA Electronic Ind. Ltd. (NASDAQ:RADA) was able to demonstrate its RADA CHR at the U.S. Army selection process.
According to RADA Electronic Ind. Ltd. (NASDAQ: RADA)’s CEO, Zvi Alon, despite not getting a firm order yet from the U.S. Army, they are confident that production orders will come soon.
$2 million Asian contract
As RADA Electronic Ind. Ltd. (NASDAQ: RADA) waits for the U.S. Army to respond after it demonstrated to it its armored personnel carrier protection system, the company recently disclosed the sale of its mobile air surveillance radar systems to an unnamed Asian country. The deal was worth about $2 million and RADA expects to deliver the order during 2016. RADA further said the Asian country will use its mobile air surveillance system for its armed forces.
The CEO Alon said that was the first production order RADA had received order for its mobile air surveillance systems from Asia. RADA hopes that the superior performance-to-price ratio of its mobile radar systems will generate more business in Asia and other parts of the world.
RADA Electronic Ind. Ltd. (NASDAQ: RADA) gets capital injection
To keep its R&D machine well-oiled so that it continues to develop superior military electronic solution, RADA entered into equity financing deal with DBSI Investment. Under the deal, DBSI was to acquire shares of RADA in exchange for $4 million capital injection. The investor received the warrant to acquire additional shares of RADA valued at about $2 million. Moreover, the investor was granted the option to purchase about $3.2 million of convertible notes.
What transpired in 4Q?
For the 4Q2015, RADA Electronic Ind. Ltd. (NASDAQ: RADA) generated revenue of $3.8 million, which declined 35% YoY. As such, the company logged EPS loss of $0.12, wider than EPS loss of $0.01 in the comparable quarter a year earlier.