RADA Electronic Shares Slip After Q2 Results, Registers Revenue Decline Of 18%

RADA Electronic Industries Ltd RADA reported a second-quarter revenue decline of 18.4% year-over-year to $23.06 million, missing the consensus of $29.13 million.
Gross profit declined by 29.2% to $7.98 million, and margin contracted by 527 bps to 34.6%.
EPS was $(0.09), down from $0.20 in 2Q21.
RADA recorded an operating loss of $(3.02) million, compared to a profit of $4.5 million a year ago.
Also Read: RADA Agrees To All-Stock Merger With Leonardo DRS
Dov Sella, RADA's Chief Executive Officer, commented, "the pending merger with U.S.-based DRS is proceeding as planned, and we are actively working to identify top-line synergies within our businesses to actualize post-merger close. The merger creates a leading technology defense company in which RADA will continue to play an important role, with capabilities serving a broad range of high growth U.S. and global budget priorities."
Adjusted EBITDA was $1.77 million (-71.9% Y/Y), and the margin contracted by 1,470 bps to 7.7%.
As of June 30, 2022, RADA had net cash and cash equivalents of $55.7 million.
Price Action: RADA shares traded lower by 6.96% at $10.30 on the last check Wednesday.