Israeli defense company Rada Electronic Industries Ltd. (Nasdaq: RADA) today reported new orders amounting to $12 million. It appears that the company is continuing its momentum in recent months; it has announced orders totaling $24.5 million since early August (including those announced today).
The tactical radar for land forces that RADA manufactures are its main growth engine, but the company also provides avionics solutions. More than $5 million of the orders reported by the company today are for its C-RAM software-based radar for protection against mortar shells, missiles, and artillery; counter-UAV systems; and SHORAD short-range air defense. The company says that most of the orders were received from new strategic customers, with potential for follow-on orders. The remaining orders that are not for tactical radar are follow-on orders for RADA's avionics products, including UAV systems.
RADA CEO Dov Sella says, "As these orders indicate, our avionics activity remains stable and profitable. The orders we received give us confidence that this activity will remain stable in the coming years. Beyond that, our growth engine, the software-based radar sector, is still gathering steam, including new initial orders with significant future potential obtained from strategic customers. Furthermore, we see that new customers we started working with at the beginning of the year are starting to make follow-on orders. I again emphasize that our tactical radar market is still in an initial growth phase and we see that it is gaining momentum. We believe that our leading position in the tactical radar market for land forces will produce results in the near future."
RADA's market cap is $92 million. Its controlling shareholder is the DBSI private investments fund, controlled by Yossi Ben-Shalom and Barak Dotan, which currently holds 27% of RADA's shares. DBSI first invested in RADA in 2016, investing a few million dollars when RADA had liquidity problems and its market cap was only $6 million. After the share price shot up in the ensuing months, DBSI sold off some of its holdings at a handsome profit.
Published by Globes, Israel business news - en.globes.co.il - on November 12, 2018
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