- RADA Electronic Industries Ltd (NASDAQ:RADA) reported a first-quarter revenue decline of 11% year-over-year to $22.5 million, missing the consensus of $30.79 million.
- EPS loss was $(0.01), below the consensus of $0.12.
- Gross profit declined by 26.3% to $7.34 million, and margin contracted by 690 bps to 32.6%.
- RADA recorded an operating loss of $(0.86) million for the quarter, compared to a profit of $3.55 million in 1Q21.
- Adjusted EBITDA was $1.28 million (-73.3% Y/Y), and margin fell by around 1,330 bps to 5.7%.
- As of March 31, 2022, RADA had cash and equivalents of $65.9 million. Inventory levels reached $59.3 million.
- The company stated that the financial results were significantly impacted by the over 5-month U.S. budget delay and the Continuing Resolution with respect to government appropriations to federal agencies, which ended March 11, 2022.
- Q1 Bookings were ~$29 million, representing over 22% Y/Y growth in new business.
- RADA reiterates FY22 revenue guidance of over $140 million.
- “The ending of the CR and the strong bookings already received in Q1, should provide for a strong recovery in the upcoming quarters, and we expect to maintain our normal margin profile and cash generation for 2022,” commented CEO Dov Sella.
- Price Action: RADA shares traded lower by 14.7% at $11.70 on the last check Tuesday.
