Exhibit 99.1

Earnings News

Arotech Reports Second Quarter 2018 Results

Ann Arbor, Michigan – August 7, 2018 – Arotech Corporation (NasdaqGM: ARTX) today announced financial results for the three and six months ended June 30, 2018.

Second Quarter 2018 Financial Summary:

Second Quarter 2018 Segment Results:

Second Quarter 2018 Business Highlights:

Mixed second quarter results deliver expected earnings despite less than expected revenues.

Training and Simulation Division

Power Systems Division

“Our second quarter and first half 2018 results were mixed, with strong results coming from our Training and Simulation Division, while our Power Systems Division delivered less than expected financial performance,” commented CEO Dean Krutty. “In the second quarter, our commercial vehicle simulation segment successfully delivered 13 driving simulators to Mexico under our INL IDIQ contract and our military vehicle simulation segment continued to make expected progress on our programs for the US Army and the Army National Guard. Strong sales in our air warfare and MILO groups also contributed to our first half results. Looking forward, we are honored to be working with the U.S. Marines to revitalize their Combat Convoy Simulators, as discussed in our recent press release.”

“Our Power Systems Division recorded less than anticipated revenue and earnings in the quarter. Our U.S. power group has experienced difficulty in the second quarter delivering the U.S. Marine Corps’ AAV electrical kits under subcontract to SAIC. This has led to program overruns, which have combined with program delays to bring down our segment revenues and margins. While we have worked hard to optimize our manufacturing processes and our design, the overall program is struggling to meet the previously anticipated delivery tempo.”

“Our battery group in Israel is executing well on its plan to diversify into commercial segments and into military customers outside of the Israeli Defense Forces (IDF). This effort has resulted in the growth of its backlog in the second quarter. While we continue to lack visibility into new battery production orders for the IDF, we have maintained our relationship as the battery technology company of choice for the Israeli military and we are generating revenue from several developmental efforts to benefit the IDF,” concluded Mr. Krutty.

Second Quarter Financial Summary

Revenues for the second quarter of 2018 were $21.9 million, compared to $21.5 million for the corresponding period in 2017, an increase of 2.0%. The year-over-year increase was primarily due to higher revenues in the Company’s Training and Simulation Division.

Gross profit for the second quarter of 2018 was $6.6 million, or 30.2% of revenues, compared to $6.0 million, or 27.9% of revenues, for the corresponding period in 2017. The year-over-year increase was primarily due to higher margins in the Company’s Training and Simulation Division.

Operating expenses were $6.0 million, or 27.6% of revenues, in the second quarter of 2018, compared to operating expenses of $6.1 million, or 28.4% of revenues, for the corresponding period in 2017. Operating income for the second quarter was $562,000 compared to an operating loss of $(115,000) for the corresponding period in 2017.

The Company’s net income from operations for the second quarter of 2018 was $83,000, or $0.00 per basic and diluted share, compared to a net loss of $(595,000), or $(0.02) per basic and diluted share, for the corresponding period in 2017.

Adjusted Earnings per Share (Adjusted EPS) for the second quarter of 2018 was $0.03, compared to $0.01 for the corresponding period in 2017.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) for the second quarter of 2018 was $1.5 million, compared to $1.0 million for the corresponding period of 2017.

The Company believes that information concerning Adjusted EBITDA and Adjusted EPS enhances overall understanding of the Company’s current financial performance. The Company computes Adjusted EBITDA and Adjusted EPS, which are non-GAAP financial measures, as reflected in the tables below.

Year-to-Date Financial Summary

Revenues for the first six months of 2018 were $49.1 million, compared to $43.8 million for the comparable period in 2017, an increase of 12.2%. The year-over-year increase was driven primarily by higher revenues in the Company’s Training and Simulation Division.

Gross profit for the first six months of 2018 was $14.3 million, or 29.1% of revenues, compared to $12.5 million, or 28.5% of revenues, for the prior year period. The year-over-year increase in margins was driven primarily by higher revenues in the Company’s Training and Simulation Division.

Operating expenses for the first six months of 2018 were $12.7 million or 25.8% of revenues, compared to expenses of $12.8 million or 29.2% of revenues for the corresponding period in 2017.

Operating income for the first six months of 2018 was $1.6 million, compared to operating loss of $(341,000) for the corresponding period in 2017.

The Company’s net income for the first six months of 2018 was $679,000, or $0.03 per basic and diluted share, compared to a net loss of $(1.4 million), or $(0.05) per basic and diluted share, for the corresponding period in 2017.

Adjusted Earnings per Share (Adjusted EPS) for the first six months of 2018 was $0.08, compared to $0.02 for the corresponding period in 2017.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) for the first six months of 2018 was $3.7 million compared to $2.0 million for the corresponding period of 2017.

Arotech believes that information concerning Adjusted EBITDA and Adjusted EPS enhances overall understanding of its current financial performance. Arotech computes Adjusted EBITDA and Adjusted EPS, which are non-GAAP financial measures, as reflected in the tables below.

Balance Sheet Metrics

As of June 30, 2018, the Company had $7.7 million in cash and cash equivalents, as compared to December 31, 2017, when the Company had $5.5 million in cash and cash equivalents.

As of June 30, 2018, the Company had total debt of $15.3 million, consisting of $5.6 million in short-term bank debt under the Company’s credit facility and $9.7 million in long-term loans. This is in comparison to December 31, 2017, when the Company had total debt of $15.9 million, consisting of $5.1 million in short-term bank debt under its credit facility and $10.8 million in long-term loans.

The Company also had $7.8 million in available, unused bank lines of credit with its primary bank as of June 30, 2018, under a $15.0 million revolving credit facility.

The Company had a current ratio (current assets/current liabilities) of 2.1, compared with the December 31, 2017 current ratio of 2.0.

As of December 31, 2017, the Company had net operating loss carryforwards for U.S. federal income tax purposes of $40.7 million, which are available to offset future taxable income, if any, expiring in 2021 through 2032. Utilization of U.S. net operating losses is subject to annual limitations due to provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

Arotech had a backlog as of June 30, 2018 of $65.9 million. This compares to a backlog of $61.3 for the same period last year and a backlog of $61.1 as of December 31, 2017. Overall company backlog increased by 7.6% over last year and 7.9% over the prior year end.

2018 Guidance

The Company is narrowing its 2018 guidance to the lower end of our previously provided range, and now expects: Total revenue of $100 million to $105 million; Adjusted EBITDA of $7.0 million to $7.3 million; and Adjusted EPS of $0.14 to $0.16. The financial guidance provided is as of today and the Company undertakes no obligation to update its estimates in the future.

Conference Call

The Company will host a conference call tomorrow, Wednesday, August 8, 2018 at 9:00 a.m. Eastern time, to review its financial results and business outlook.

To participate, please call one of the following telephone numbers. Please dial in at least 10 minutes before the start of the call:

The conference call will also be broadcast live as a listen-only webcast on the investor relations section of Arotech’s website at http://www.arotech.com/.

The online playback of the conference call will be archived on Arotech’s website for at least 90 days and a telephonic playback of the conference call will also be available by calling 1-877-481-4010 within the U.S. and +1-919-882-2331 internationally. The telephonic playback will be available beginning at 12:00 p.m. Eastern time on Wednesday, August 8, 2018, and continue through 9:00 a.m. Eastern time on Wednesday, August 15, 2018. The replay passcode is 35667.

About Arotech Corporation

Arotech Corporation is a defense and security company engaged in two business areas: interactive simulation and mobile power systems.

Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan, and research, development and production subsidiaries in Michigan, South Carolina, and Israel. For more information on Arotech, please visit Arotech’s website at www.arotech.com.

Investor Relations Contact:

Scott Schmidt

Arotech Corporation

1-800-281-0356

Scott.Schmidt@arotechusa.com

Except for the historical information herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management’s current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties that may cause actual results to vary materially. These risks and uncertainties include, but are not limited to, risks relating to: product and technology development; the uncertainty of the market for Arotech’s products; changing economic conditions; delay, cancellation or non-renewal, in whole or in part, of contracts or of purchase orders (including as a result of budgetary cuts resulting from automatic sequestration under the Budget Control Act of 2011); and other risk factors detailed in Arotech’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and other filings with the Securities and Exchange Commission. Arotech assumes no obligation to update the information in this release. Reference to the Company’s website above does not constitute incorporation of any of the information thereon into this press release.

CONDENSED CONSOLIDATED BALANCE SHEET SUMMARY (UNAUDITED)

(U.S. Dollars)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(U.S. Dollars, except share data)

Reconciliation of Non-GAAP Financial Measure – Continuing Operations

To supplement Arotech’s consolidated financial statements presented in accordance with U.S. GAAP, Arotech uses a non-GAAP measure, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). This non-GAAP measure is provided to enhance overall understanding of Arotech’s current financial performance. Reconciliation of the nearest GAAP measure to adjusted EBITDA follows:

^*     Includes stock compensation expense, one-time transaction expenses and other non-cash expenses.

Calculation of Adjusted Earnings Per Share

(U.S. $ in thousands, except per share data)