IAI drone.
An Israel Aerospace Industries Ltd. (IAI) Heron 1 unmanned aerial vehicle (UAV) stands on display at the Singapore Airshow, February 11, 2014. Photo by Bloomberg
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Israel Aerospace Industries is negotiating the sale of $1.2 billion in electronic systems to an unidentified foreign customer, the state-owned company said in a terse Tel Aviv Stock Exchange announcement Sunday.

If IAI wins it, the contract will be for a five-year period and appears to include advanced radar systems.

IAI released the announcement shortly after another one forecasting negative cash flow from operations for the second quarter ended June 30, citing a delay in payments it is owed from the Defense Ministry.

The firm said the Defense Ministry owes it some $250 million, compared with $175 million at the end of the first quarter. As a result, IAI expects its negative cash flow for the quarter to be similar to the first quarter of the year.

IAI is planning to issue bonds this month to fund operations and repay earlier debt.