Arotech Corporation (Arotech), a US-based provider of quality defense and security products, has reported revenues of $68.9 million for the year-end 2008, up 20%, compared with the revenues of $57.7 million in the previous year-end. It has also reported a net loss of $3.6 million, or $0.28 loss per share, for the year-end 2008, compared with the net loss of $3.5 million, or $0.31 loss per share, in the previous year-end.

Fourth Quarter Results:

Revenues for the fourth quarter reached $23.9 million, compared to $17.7 million for the corresponding period in 2007, an increase of 35%.

Gross profit for the fourth quarter was $7.0 million, or 29% of revenues, compared to $5.8 million, or 33% of revenues, for the corresponding period in 2007, a 4 point decrease in the gross margin percentage.

Arotech reported an operating profit for the fourth quarter of $927,000 compared to an operating profit of $368,000 for the corresponding period in 2007.

Arotech’s net loss for the fourth quarter of 2008 was $(624,000), or $(0.05) per share, compared to a net profit of $465,000, or $0.04 per share, for the corresponding period in 2007.

“In the most difficult economic environment in recent memory, Arotech managed to stay essentially flat compared to last year,” said Arotech Chairman and Chief Executive Officer Robert S. Ehrlich. “We regard this as a significant accomplishment, and hope that when the economy improves our results will as well,” concluded Ehrlich.

Full Year Results:

Gross profit for 2008 was $18.8 million, or 27% of revenues, compared to $18.1 million, or 31% of revenues, for 2007, a 4 point decrease in the gross margin percentage.

Arotech reported an operating loss for 2008 of $(1.7) million, compared to an operating loss of $(2.5) million in 2007.

Backlog:

Backlog of orders totaled about $36.6 million as of December 31, 2008.

Cash Position at Year End:

Arotech had trade receivables of $19.3 million as of December 31, 2008, compared to $14.6 million as of December 31, 2007. The company had a current ratio (current assets/current liabilities) of 1.70, down from the December 31, 2007 current ratio of 1.93.

As of December 31, 2008, the company had $4.3 million in cash, $382,000 in restricted collateral securities and restricted held-to-maturity securities due within one year, and $49,000 in available-for-sale marketable securities, as compared to December 31, 2007, when the company had $3.4 million in cash, $320,000 in restricted collateral securities and restricted held-to-maturity securities due within one year, $1.5 million in an escrow receivable, and $47,000 in available-for-sale marketable securities.

Arotech ended 2008 with $5.1 million in short- and long-term notes and $3.6 mil-lion in bank debt. The company also had $3.1 million available in unused bank lines of credit at year end in its primary bank.

Stockholders’ equity at the end of the year was about $53.5 million.