Q3 2020 Rada Electronic Industries Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by the conference will begin shortly.
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Ladies and gentlemen, thank you for standing by welcome to the truck industries third quarter 2012 results conference call.
All participants are present in listen only mode.
Following management's focus on patient instruction will be given for the question answer session.
As a reminder, this conference is being recorded.
But not the company's press release, if you have not received it please contact our Investor Relations team at you can go after and public release.
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Six 685, <unk> nine or do it in the news section of the company's website.
Got it.
I will now.
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You can approach Mr. Green would you like to begin.
Well I'd like to welcome all of you to the school go Oh Gosh that's.
Good afternoon, just reported you though.
License and wealth management for high school.
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Your vote Chief financial.
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So more to a few highlights of the quarter sort of like always you will provide a summary of the financials.
A quick question a little session.
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Ladies and gentlemen, thank you for standing by please go ahead.
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Yeah sure.
So.
In summary.
I'm not sure.
Victor.
Revenue growth both year over year at <unk> <unk>.
We have a goal.
Joel.
16% quarter over quarter.
And we expect it to grow.
Sure well continue for April 2021.
Our gross margin.
Yes.
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Worldwide.
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Sure.
Yeah.
And with future.
Sales.
We continue good overall picture.
Oh boy versus all Bobby.
Okay great.
Like the above.
The prior quarter.
For the.
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Moving it forward.
Going forward, we would bring.
Well.
Yeah.
No.
For example forward renewal.
Joe we are talking going Joe's.
Oh.
We agree.
Right.
Now all that said before.
If you all remember we now see quarterly.
[laughter] all guidance, we'll all go on all one bedroom and older.
Which are coming into hospital.
Right, The New York area.
And Oh pardon.
Overall sort of yours or you go there.
Okay.
Our goal for 2000.
Looking further out.
Before John Walker for.
You need to go to Q4.
Right.
We have a strong balance sheet.
Net cash at the end.
The cold or would you go for it.
Huh.
Patricia will all go walking probably gone.
Yeah.
We still have some fluctuations.
We are not.
I'll go see our production program.
Well Jim Cramer.
And there is no.
Current cash levels support so.
Okay and then.
Sure sure bring her drinking connected vehicles you bring your goal.
Mmm Hello.
Before they make any warrant.
The topic remarkable journey.
We do expect to become cash flow positive locally.
Let's discuss all calling for.
I'd like to update you on the merger pullback.
Well you're right no.
Army awarded the general dynamics.
Triangle Whopper two dogs.
Sure.
All right.
And there are good pool.
Yeah.
A few weeks ago covering your fault, we gave a framework sloppily go.
For the game.
Wow for before.
Google.
It would be completed by mid ready for it.
I mean is your phone calls from one gig art Gallery people.
The mission of where they can grow quite Yamaguchi art integrate their motivation for upgrade our Basel III, we have not yet we'll see the older homes.
Yeah, the good before merger.
Search across virtually all the folks here.
Our production program.
Youre well to be there.
If you're talking vehicle already gone all all right.
Literature, and the increase already gone here.
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Joel.
The far east.
You also see GE bought programs now we'll be comfortable going forward or why are you willing to buy in through the Heber, we've already but do you feel like you are gone.
We have always over GBP.
You're all aware.
Well, we're working on that for you for following very good prices or walk it could make sense and broader tax ready to buy your part of your friends in New York.
Sure Mark this year.
Beyond here you go.
Being the growth and it's almost like it's well this year we are.
I'm sorry for.
Oh on over there.
Sure older Yeah.
Yes, it will.
All right.
Our pipeline continues to build and promising prospects.
Potential order for charity volume to your.
Other mature markets on.
Good morning enjoy.
I'm showing on that.
But some lauren.
Again, we are outperforming our brethren.
Revenue.
Year over year growth you offer them quarterly growth 16%.
Yeah, well never heard of drug portfolio and your dog right before bill.
Yeah.
Great Britain were strong order flow.
Across the globe.
Again, we've talked about before giving your guidance, which.
Which is not going to be hard media and the bar.
Copel that'd be 50% growth year over year.
Our gross margin never happen.
Operating expenses all right Gerry.
Probably not.
We can bring much of the ugly.
Hello.
Okay.
You'd be like $3.4 million.
For example for revenue.
Given the hoisting beverage business, we expect you guys to blow program.
We don't do that.
Well thank.
Okay role.
Okay.
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Good luck.
We are excited to continue.
The growth in the foreseeable future all current leading a maturing of RG directors would be robbing me growing market for the new government and Gary you had really.
In the near future on March Twond to fuel the Oregon.
Probably yes.
Why are we talking about.
He will be resolved.
Quarter Steve.
Yes.
This board who are crossing over to walk.
Oh well.
Thank you read finally goes from there, but it's really going to build its very well, providing short code for the quarter, though.
First quarter revenue grew $40.4 billion up 81%.
Our gross margin in the quarter, 30% of revenue.
Compared with pretty good although the bulk water groovy.
Okay 20 point.
As you know we pick an investment last year, which will be in R&D marketing and sales.
As one of those booked through the third operating expenses.
However, looking ahead, though.
The contagion no burden.
Going forward.
Operating income was a museum doubled in the quarter compared to operating loss.
$495000 third quarter 2009.
Adjusted EBITDA.
The report from these people.
Third quarter revenue compared with 105000 in Q3 of them.
Net income.
Look we love the children, we recorded 2.1 million or five cents per share.
No problem.
I wouldn't read ourselves.
No those share in the third quarter sales.
I would like to summarize it only vocal article about it.
The September Thirtyth, when you're doing the $23.7 million that carriers, there's something more in the furniture there related to the great and do you have.
For the quarter and chilled dessert.
It could be 9 billion dollar fighters.
First of all of us.
Our inventory levels increased 9.3 billion.
There have been people, who we've known as the year end 2009.
We did book.
Good grief proposal you do expect the growth going to pull it would appear that we offer.
Or component given the growth in Burma and they need to you Gary when you look at the moment.
Maybe as a result of Goldman.
In summary, the merger.
Financial results demonstrate we are great.
No well Brooks and move towards consumer will look like from what you know opens the call for questions operator.
Thank you, ladies and gentlemen at this time well begin the question answer session. If you have a question. Please press star one if you wish to come to your question. Please press star two if you're using speaker equipment kinda Mr. headsets for crafting the numbers. Your question that we pulled in the order. They are received please standby what we called for your questions.
The first question is from Ken Herbert of Canaccord. Please go ahead.
Hi, good afternoon.
I'll be very nice quarter.
Thank you. Thank you.
Oh I want to touch first on the gross margins.
Impressive this quarter.
This range is sustainable as we go into 21 or so we're gonna be upside on the gross margin line as the volumes.
Oh.
We do believe that there are three or four.
Well, we bought rental gross margin as Brian mentioned, we my year.
Gotcha.
Oh, but you know.
Well get fulfilled company so.
Thank you and increased knocked it something very outboard your fuel are expected.
Yes, Sir.
First of all this quarter.
Tailwind for gross margins will start.
No nothing special.
Okay perfect.
Forward it sounds like Shyam shore out is on pace for a pretty nice step up next year.
Can you just comment on cost control chime in its contract and I know a few years or so.
Some technical issues look to try and have led to some some delays at least with the army, but obviously after which sue. So can you just comment our confidence around timing, there and expectations for that program in July 2021.
Now going through them.
Why is going be the older you have many bookkeeping or you know.
Okay, perfect and just.
Finally are you prepared to talk about what type of growth what I call. It now but.
We should expect for 2021 on the topline.
It would be Oh, yeah.
We you know we broadly is that you're going to continue growing book for money, we will issue probably in the month, maybe more than a month from now when you use your guidance for the Atlantic where do you want to be patient from doing that.
Our next quarterly EPS back there thank.
Thank you Robert.
The next question is from Brian Kingsbury.
Alliance Global partners. Please go ahead.
Great. Thank you.
Solid orders throughout the year I want to get into the size of your sales force today.
At the beginning of 2020, and then maybe you can talk about your plans to add additional sales resources over the next year.
No.
I think we have the lofty goals both for me.
We'll now site here you've learned approaches.
That's really the locomotive in direct marketing.
The U.S.
No.
The marketing and sales so to give though.
Thank you.
Close to 30 people, which is there.
No.
Sales for the quarter.
Well no solution for them.
We are finding that we at deeper it as much as we need.
As a sign that our true galliprant.
Right.
And then given your succession slugs in short range or defense customers seeking you out or is it mostly outage or you responding to RFP type situations.
I'm, sorry could you repeat the question right right from the communication issues again.
Yeah, no worries yeah. So.
You've got a lot of success and demand for you or.
Maybe radars in short range Air Defense, So I'm wondering how customers more and more seeking the right out where our partners see log out or is it still mostly outreach or you and your team responding to RFP.
Oh, the shape of the market and obviously, our excuse me.
The emerging markets and the dog typically as you know need urgent need that's all on for the buy you recruit on August Threerd show me, what you live demonstrations and Denbury.
Not be pretty quick decisions going said, we'll see you all cycles will say I don't know two years I think it's something like here.
I don't know maybe half of the time, but there is not yet in the state you'll see on Skouries out.
Got it.
And then inventory as you highlighted.
He has been a drag on cash.
And that leads to stronger revenues was not necessarily a bad thing. It's a good thing like due to stronger demand in 21 now.
I mean, obviously there are some large programs in 22, and 23, you need to make incomes maximums manufacturing capacity.
Or will it be a doping barley manufacturing capabilities and the focus to double our capacity, even though we have looked reach than any as of now.
No way, we have two sites the sites potentially you can put you'll see.
Right well for about $100 million Youre.
Eventually, but we do believe that we should do it ahead of time, we have new development, we want to introduce sales fairly normal as well. So we are doubling our capabilities, adding good honestly chambers, both meaningful and in the United States.
But you need the next year.
Yes.
Once it seems like you're in a patient in more than $100 million next year, even if the growth rate slowed significantly so.
Well you can buy summer, we'll have increased capacity of more than $100 million.
The capacity in both those book the Oceanbulk and each other they do work and support that you mentioned $200 million Brent.
Yes.
Yes.
That's been Oh.
So 200 million is your capacity in total right now of revenue.
Yes, and we're increasing your that's not going to think about that.
Got it okay sounds good thank you.
Thank you.
The next question is from Bill manual of Edison Group. Please go ahead.
Yes, hi points.
Coal supplies I'm, just wondering in terms of the product mix.
The trunking sensitive point Paul.
$12 million.
Good job impacting gross margin in the quarter.
No look dramatically that.
No significant difference in gross margin between Yodlee.
The radar.
Okay.
You know boots and update that.
New orders come talk to us is that an indication that.
Well, maybe a little bit smaller, though you do have some.
Two quick.
But then you see it could change in the geographic breakdown going forward.
Good.
I mean that we have we expect other than yours will be naturally to your biggest say local market for us it's about 50% of the total market and we were very happy.
We anticipated the U.S.C. is moving faster than any other markets or at the end. We do believe that date, we'd be surprise. The tree FICO said, we've seen show by the way 50 per cent for sales in the U.S. and the other 50 in rest of the world, while remember that the avionics all there. So there are parts of those.
Hello.
But then next year the yards would only make lets say more than 50%, but we do see Europe and other places waking up we see me now I assume you know requirements.
I mentioned in my briefing and.
We do believe that the embryonic ready to it would be even again.
Okay, great. Thanks, so much.
The next question from Jeff Bernstein of Cowen. Please go ahead.
Hi, Devin.
Obviously our.
Good quarter. Thank you all for that.
Just interested you mentioned developments.
Yes.
Thanks Mom and Pops that may have been the flows may never let's set aside drones.
We're not talking about sort of helps together all thats all its all more things and more we're talking about more major scale technology, how is that changing all the financing.
Anthony Basel requirements that.
At the bottom of the B mall central.
Well, you always thought that the.
I think all these include stock at the more than two years ago. So we are in the midst of these changes.
Growth of our business.
He is affected by by all the like the recognition of the markets or over the very the need for a buck because children chip protection and life saving their solutions and it already.
Continuously walgreens.
Hi, Bill for you know became norm artful so bill.
Bill Rammell supplies ever from.
Okay. Thanks. Thank.
Thank you.
If there are any additional questions. Please press star one if you wish you can see your question. Please press star two please stand by were pulled from a question.
The next question is from the multi please go ahead.
Well I.
Hi, Mr.
So a lot of action reform.
Talk for a couple of weeks ago actually I had a question, but you've already answered it.
So I just want to tell you where the judge rather relations for the good quarter and.
Thank you very much.
Thank you.
There are no further questions at this time Mr. Salchow would you like to make a concluding statement.
Oh yeah.
[noise] on behalf of the miniature couple would like to thank you all for participating in our there and.
And conference call sorry.
And we wait for it to you.
Thank you.
And at the Wainwright Conference.
So they are becoming so thanks.
Great files, so anybody that wants to join his more than welcome.
Otherwise, we look forward to speaking with you and update you again in the next quarter.
Oxford and approximately three months starting sales.
Sales and they think door.
Thank you. This consists of and electronic industries third quarter 2020 results conference call. Thank you for your participation you May go ahead and disconnect.
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