Adds update regarding no material financial impact from the Corona Pandemic
NETANYA, Israel, March 20, 2020 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQ: RADA), a leading global provider of advanced software-defined radars, today announced the reconfirmation of its guidance expectations for 2020, and clarified that, to-date, the Coronavirus pandemic has had no material impact on its business.
RADA continues to expect revenues to grow in 2020 to over $65 million, an increase of over 47% year-over-year. Furthermore, and based on orders in hand, first quarter and first half revenues are on track to meet expectations. Management continues to expect each quarter in 2020 to show continued sequential growth throughout the year.
As of today, the Company has over $30 million in net cash, more than sufficient for working capital purposes for the foreseeable future. In addition, the Company has built sufficient inventory to allow for on-time deliveries of its orders and to date has not seen any supply chain disruptions due to the Coronavirus pandemic.
RADA has taken steps to protect its workforce both in the United States and in Israel, including changing shift times, to ensure smaller working groups and asking personnel to work from home where possible. RADA continues to comply with all local health directives.
Dov Sella, RADA’s CEO, commented, “I wish all those directly impacted by the virus a speedy recovery and we all look forward to putting this period behind us. While RADA has taken operational steps to protect its workforce, the pandemic has had no impact on our manufacturing capabilities and our ability to deliver our products on-time and as-planned, to our customers. Our products are critical to a country’s defense needs and we have not seen or expect a pause in orders. Our development efforts continue with minimal interference due to our efficient and fast adjustment in both Israel and the USA to remote work, in order to fully comply with government regulations to mitigate COVID-19 spread."
RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.
Forward Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk uncertainties and other factors include, but are not limited to, the impact of the Coronavirus on our company and its personnel, suppliers and customers, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in the Company’s Annual Report on Form 20-F and other filings with the Securities and Exchange Commission.