July 6, 2022
It expected revenue of $ 140 million, but was forced to remove the forecast due to the delay in approving the US budget, which led to a decline in the volume of orders from the company’s main target market. The merger with Leonardo will be completed in the fourth quarter
Radar maker Rada announced in a report to the stock exchange today (Wednesday) that it has withdrawn from its $ 140 million revenue forecast in 2022, which it presented in recent quarters. This is because of the prolonged delay in approving the federal budget of the United States, which was approved by Congress only in March, six months late.
The company’s CEO, Dov Sela, stated in the announcement: “It takes us longer to recover from the delay in approving the budget. The pace of orders is slower than we initially estimated and this affects our revenue from the United States. ” Following the announcement, Rada’s share, which is also traded on the NASDAQ, falls by about 9%.
Rada also updated today that its revenue in the second quarter of 2022 amounted to only $ 22.5 million, similar to the disappointing results presented by the company in the first quarter of the year, which already reflected the decline in orders from the United States. Following the publication of the results for the first quarter, in May, Rada maintained optimism and confirmed the annual revenue forecast, assuming that in the second half of the year the pace of orders from the United States will accelerate and close the gap.
Last month, Rada signed a merger agreement with the American military electronics giant Leonardo DRS, in a share transaction in which Rada will hold about 20% of the shares in the subsidiary. Brada estimates that the deal will be completed in the fourth quarter of this year.
Rada develops software-based tactical radars used for two main applications: air defense systems for detecting and intercepting short-range threats, such as drones, drones, mortar shells and short-range artillery, as well as active defense systems (APS) used as a protective shell For an armored vehicle against mortar shells and shoulder-fired missiles. Among them is Elbit’s “spur arrow” system in which Rada’s radar is integrated. These are emerging markets, given a second impetus following the war in Ukraine which revealed the importance of short-range anti-aircraft missile defense systems, and of active anti-tank missile defense systems.
Posted in categories: Profit Reports, News, Mergers & Acquisitions, Aviation & Security
Posted in tags: Dov Sela, Rada
