RADA Electronic Ind. Ltd.(NASDAQ:RADA) is well worth a look right now. The company is trading for a 168% premium to its 2017 open and a close to 50% run on the last 30 days alone. The gains have come in the back of a couple of key announcements, both of which points to the potential for further upside as we head into the final quarter of the year.In anticipation of a continuation of the current trend, here is a look at what we are focusing on as supportive of the statement.For those new to this one, RADA is a technology company that primarily manufactures, produces and sells tech products designed for military use. It is headquartered in Israel but sells globally and has a core focus on aviation type technology (things like flight data recorders and radar systems) but also produces and sells products outside of this aviation focus.The first of the two inputs that we are pinning the most recent appreciation on is second quarter financials, which hit press on August 10, 2017. As per the release, revenues for the period hit $5.3 million, up from the $2.7 million recorded during the same period a year earlier. Net income during the second quarter of 2017 was $0.5 million compared to a net loss during the same period in 2016 of $1.6 million. When a small (relative) company like this crosses from a net loss to a net gain, it's generally an inflection point. This is especially true if the crossover derives from organic growth (as is the case here) as opposed to any single driver.Revenue guidance for the full year 2017 is $25 million, which would represent a more than 100% growth on the revenues recorded last year.So that's the numbers, and it's one of the inputs that have been pushing the company up of late, but the second release is probably more important from a long-term perspective. On August 16, 2017, RADA reported that it had received an $8 million order from a US military force. The order is rooted in the company's radar technology and, while we don't know the specific force that placed it, we know that it's a ground use radar system and that the tech in question will be fielded for use almost immediately subsequent to the order being filled.This is an $8 million order for a company that generates $25 million revenues annually, so it's not a game changer from a topline perspective, but that's not the key point here. What is the key point is that this represents the first sale of any reasonable magnitude to a US military customer for RADA. As many reading will likely already be aware, there's big money in selling technology (and especially warfare based operational technology) to the US military and this latest transaction opens the door for what we see as a potentially game changing wave of revenues for RADA going forward.Cash shouldn't be too much of a problem with the company generating a positive bottom line and having just raised $10 million through institutional investors in Israel, meaning near-term dilution risk is substantially mitigated, if not entirely negated, through to at least mid-2018.What are we looking for next?We would like to see some confirmation that the above discussed military order in the US can translate to the cross sale of similar technology to other US military forces, as suggested by management in the press release detailing the transaction. This company, as mentioned, is already up considerably this year, but if we get any such confirmation then there is plenty more room for upside appreciation during the coming quarters and beyond.We will be updating our subscribers as soon as we know more. For the latest updates on RADA, sign up below!Image courtesy of Conal Gallagher via FlickrDisclosure: We have no position in RADA and have not been compensated for this article.
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