Israeli defense company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has reported growth in first quarter revenue to $818.5 million from $749.2 million in the first quarter of 2017. Elbit says that the growth in revenue was driven by sales from the increased backlog and by the adoption of the ASC 606 revenue recognition standard.
Non-GAAP gross profit amounted to $239.8 million (29.3% of revenues) in the first quarter of 2018, which compares with $226.8 million (30.3% of revenue) in the first quarter of 2017.
GAAP gross profit in the first quarter of 2018 was $235.4 million (28.8% of revenue), which compares with $221.2 million (29.5% of revenue) in the first quarter of 2017.
Research and development expenses, net were $68.2 million (8.3% of revenue) in the first quarter of 2018, up from $58.4 million (7.8% of revenue) in the first quarter of 2017.
Non-GAAP operating income was $69.4 million (8.5% of revenue) in the first quarter of 2018, which compares with $65.5 million (8.7% of revenue) in the first quarter of 2017.
GAAP operating income in the first quarter of 2018 was $63.3 million (7.7% of revenue), compared with $58.2 million (7.8% of revenue) in the first quarter of 2017.
Financial expenses, net were $10.2 million in the first quarter of 2018, which compares with $8.6 million in the first quarter of 2017.
Non-GAAP net income attributable to the company's shareholders in the first quarter of 2018 was $54.9 million (6.7% of revenue), which compares with $51.7 million (6.9% of revenue) in the first quarter of 2017.
GAAP net income in the first quarter of 2018 was $49.6 million (6.1% of revenue), which compares with $45.6 million (6.1% of revenue) in the first quarter of 2017.
Non-GAAP diluted net earnings per share attributable to the company's shareholders were $1.28 for the first quarter of 2018, which compares with $1.21 for the first quarter of 2017.
GAAP diluted earnings per share in the first quarter of 2018 were $1.16, which compares with $1.07 for the first quarter of 2017.
At the end of the first quarter of 2018, Elbit's backlog of orders totaled $8,046 million, which compares with $7,067 million at the end of the corresponding quarter of 2017. Approximately 74% of the current backlog is attributable to orders from outside Israel. Approximately 60% of the current backlog is scheduled to be performed during 2018 and 2019.
Operating cash flow used in the first quarter of 2018 was $147.9 million, which compares with $51.3 million in the corresponding quarter.
Elbit Systems president and CEO Bezhalel (Butzi) Machlis said, “We are pleased with our start to 2018, especially with the solid increase in our backlog, which grew 14% year over year. Defense budgets in many of our target markets remain strong. We also continue to see good revenue diversification, based both on our geographic spread as well as by areas of operation. These factors support the potential for top line growth in both the short and the long term."
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2018
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