RADA Electronic Industries Ltd. (RADA) Q2 2022 Earnings Conference Call August 17, 2022 9:00 AM ET

Company Participants

Dov Sella - Chief Executive Officer

Avi Israel - Chief Financial Officer

Ehud Helft - EK Global Investor Relations

Conference Call Participants

Ellen Page - Jefferies

Jeff Bernstein - Cowen

Austin Moeller - Canaccord

Scott Huntington - Brighton Securities

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the RADA Electronics Industries second quarter 2022 results conference call. All participants are present in listen-only mode. Following management’s formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded.

You should have all received by now the company’s press release. If you have not received it, please contact RADA’s Investor Relations team at EK Global Investor Relations at 1-212-378-8040, or view it in the News section of the company’s website, www.rada.com.

I would now like to hand over the call to Mr. Ehud Helft of EK Global Investor Relations. Mr. Helft, would you like to begin, please?

Ehud Helft

Thank you Operator. I would like to welcome all of you to this conference call to discuss RADA’s second quarter 2022 results. I would like to thank RADA management for hosting this call.

With us today on the call are Mr. Dov Sella, Chief Executive Officer of RADA; Mr. Avi Israel, Chief Financial Officer of RADA, and Mr. Michael Dippold, Chief Financial Officer of Leonardo DRS. Dov will summarize the key highlights of the quarter, followed by Avi who will provide a summary of the financials. We will then open the call for the question and answer session whereby Mr. Dippold will address any questions related to DRS and the announced merger between DRS and RADA.

Before we start, I’d like to point out that the Safe Harbor published in today’s press release also pertains to the content of this conference call.

With that, I would now like to introduce RADA’s CEO, Mr. Dov Sella. Dubi, go ahead please.

Dov Sella

Thank you Ehud, and good day to all our call participants. Let’s start with an overall summary.

As we announced in early July, we experienced another quarter in the United States where our revenues mainly remained paused. The lag in U.S. DoD spending of the fiscal year 2022 appropriation has been a material headwind for the entire U.S. defense sector, including ourselves by extension. While we had hoped that orders would resume fairly quickly once the CR - the continuing resolution was concluded by the end of March, it has taken time to restart, impacting spending across the entire industry and us as well.