Benzinga | Oct 7, 2021 09:34AM EDT

Rada Electronics Industries Reports $24M Of New Business In Q3, 2021

RADA Electronic Industries Ltd. (NASDAQ:RADA) (TASE: RADA)announced today the receipt of $24 million in new business in the third quarter of 2021. Including the previously reported $56 million received during the first half of 2021, the total amount of new business received in 2021 until the end of the third quarter, amounted to $80 million. This represents a 36% year-over-year growth in new business compared with the same period last year.

Out of this new business, almost all are for RADA's software-defined tactical radars to be used in Active Protection Systems (APS), counter UAV, and point defense solutions. The U.S. market accounted for 14% of the new orders and the remainder came from global markets.

The APS market segment, comprising slightly over half of this reported new business, is beginning to contribute and build RADA's backlog. APS revenues are expected to start in the second half of 2022 with significant contribution in 2023 and onwards.

RADA's radars are also to be incorporated in long-term APS programs such as the UK Modular Integration Protection System (MIPS), led by Leonardo and successfully demonstrated to the UK MOD in July, earlier this year.

Dov Sella, RADA's CEO, commented, "Our good momentum in registering new business continues. While 2021 has already been strong with business up 36% over last year, we look forward to our fourth quarter which tends to be the strongest one of the year, both in new orders and in revenues. We reiterate our revenue expectations of over $120 million for 2021 and expect that our growth momentum will continue into 2022. Of note, and after more than a decade of our investment in a nascent market with very high potential, is the momentum we are starting to see in the APS market segment, which will further ensure growth in 2023 and beyond."