RADA Forecasts Revenues of $140M for 2022, Presents Mid-Term Organic Revenue Target of $250M
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NETANYA, Israel, Jan. 17, 2022 (GLOBE NEWSWIRE) — RADA Electronic Industries Ltd. (NASDAQ:RADA, TASE:RADA), a leading global provider of advanced software-defined tactical radars for the maneuver force, conducted an analyst webinar survey on Tuesday, January 11, 2022, summarizing its recent performance, presenting its revenue forecast for 2022 and its longer-term growth strategy.
- 2021 was RADA’s best year, with revenue of $117 million, reflecting 54% year-on-year growth;
- Total revenue forecast for 2022 is $140 million, up 20% year-over-year; which includes $90 million in revenue from the US with over 90% budget visibility and excludes any revenue from booking to shipping, which improves forecasting;
- Targets over $250 million in organic revenue within 3-4 years, implying accelerated growth over the next few years;
- APS revenues, which are not included in the 2022 forecast, are expected to make a significant contribution from 2023;
- Non-US-derived revenues are expected to reach parity with those derived from the US by the end of 2024; and
- Mergers and acquisitions should become an accretive element of RADA’s overall growth strategy in the near term.
The presentation material and audio recording of the webinar are available on RADA’s Investor Relations area on its website at www.rada.com.
Dov Sella, CEO of RADA, commented, “We were delighted to host our first webinar for analysts and investors, outlining our expectations for the coming year as well as our longer-term goals, and we hope to make this a regular event. We reiterated our estimate of the total addressable market (TAM) of $6 billion over the next decade, while half of that – the APS market – is expected to positively impact our revenue from 2023. To date, we have only tapped into a small portion of our global addressable markets. »
Mr. Sella continued, “We continue to be excited about our strong growth potential in 2022. Our revenue forecast of $140 million has three contributing factors. The US SHORAD and Point-Defense market is in a stabilization phase and 90% of our forecast of $90 million for 2022 is integrated into defense budget items, some of which are already in our order book. Based on our multi-year pipeline of $1 billion of potential non-U.S. based business, we expect $40 million in revenue outside of the U.S. in 2022. Finally, avionics is expected to generate $10 million dollars of additional revenue in 2022.”
concluded Mr Sella, “Longer term, we expect revenue growth to accelerate from 2023 due to the APS segment. Additionally, while non-US based revenues contributed a quarter of our revenues in 2021, we expect these revenues to accelerate in the coming years, reaching parity with our US revenues by the end. by 2024. Within 3 to 4 years, our organic growth objective is to exceed the $250 million revenue mark. Additionally, we believe the time is right for us to update our strategic growth roadmap to include mergers and acquisitions activity, which aims to enhance our organic growth in the medium term.
RADA is a global defense technology company specializing in proprietary radar solutions and legacy avionics systems. The company is a leader in tactical mini radars, serving attractive and high-growth markets including critical infrastructure protection, border surveillance, active military protection and counter-drone applications.
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause the actual results. These risk uncertainties and other factors include, but are not limited to, changes in defense budgets, changes in general economic conditions, impacts of coronavirus, risks related to product and technology developments , market acceptance of new products and continued demand for products, the level of competition and other factors described in the company’s annual report on Form 20-F and other filings with the Securities and Exchange Commission.
Source: RADA Electronic Industries Ltd.