Rada Electronic Industries Ltd. (Nasdaq: RADA) has signed a $4.7 million avionics installation design contract, which is part of a fighter jet upgrade program for a South American customer. Rada will design the installation of all upgraded units in the aircraft as well as support the customer in the implementation of these upgrades. The contract will be carried out in 2011-12.
The contract boosts Rada's orders so far this year to $25 million. It recently reported that it received more than $3.5 million in orders during the third quarter, including for the installation of avionics and inertial navigation systems.
Rada CEO Zvika Alon said, "This contract contributes significantly to our 2010 backlog, serving as a foundation for prolonged growth in the coming years. In executing this contract, we will be working closely with local companies as well as our customers which, we believe, will enhance our local visibility and improve our relations with our key clients there. This way of doing business has proven its effectiveness for Rada in the past in both South America as well as other locations."
Rada develops avionics, intelligence gathering, and navigation systems. The company posted $11.3 million revenue in the first half of 2010, 59% more than in the first half of 2009. The company narrowed its net loss to $500,000 in the first half. Rada chairman Herzl Bodinger was previously Israel Air Force commander.
Rada's share closed at $2.33 on Nasdaq yesterday, giving a market cap of $20.7 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2010
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