Arotech Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported revenues were $23,844,477 compared to $25,930,441 a year ago. The year-over-year decrease was primarily due to a decline in the Power Systems Division related to the termination for convenience order on the AAV program, as well as the decline in battery orders from the Israeli Ministry of Defense contract that was completed in early 2018. Operating income was $1,142,802 compared to $1,276,134 a year ago. Income before income tax expense was $967,936 compared to $1,051,453 a year ago. Net income was $740,556 or $0.03 per basic and diluted share compared to $788,218 or $0.03 per basic and diluted share a year ago. Total adjusted EBITDA was $2,366,176 compared to $2,331,376 a year ago. Adjusted net income was $1,604 compared to $1,656 a year ago. Adjusted EPS was $0.06 compared to $0.06 a year ago.

For the nine months, the company reported revenues were $72,967,596 compared to $69,726,579 a year ago. Operating income was $2,760,746 compared to $934,743 a year ago. Income before income tax expense was $2,070,392 compared to $171,278 a year ago. Net income was $1,419,627 or $0.05 per basic and diluted share compared to net loss of $574,717 or $0.02 per basic and diluted share a year ago. Total adjusted EBITDA was $6,041,689 compared to $4,365,119 a year ago. Adjusted net income was $3,743 compared to $2,263 a year ago. Adjusted EPS was $0.14 compared to $0.09 a year ago. The Company had net cash provided by operating activities of $3.3 million compared to cash provided by operating activities of $843,000 for the corresponding period in 2017. The year-over-year increase in revenue was driven primarily by higher revenues in the Company's Training and Simulation Division related to its vehicle simulation and use of force products, partially offset by a decline in the Power System Division revenue as a result of the decline in battery orders from the Israeli Ministry of Defense contract that was completed in 2017.

The Company is updating its 2018 guidance, increasing its adjusted EBITDA guidance to the range of $7.3 to $7.6 million and Adjusted EPS of $0.16 to $0.18, while decreasing revenue guidance to the range of $95 million to $100 million.