The HERMES 900 HFE drone manufactured by Israeli company Elbit for use in the Swiss Reconnaissance System (ADS15) is seen during a media presentation at the Swiss Air Base in Emmen, Switzerland December 9, 2019. REUTERS/ Arnd Wiegmann/File Photo

May 24 (Reuters) – Israeli defense electronics company Elbit Systems (ESLT.TA) reported a drop in first-quarter profit on Tuesday, blaming the decline on share price-linked compensation plans, while revenue increased.

The company earned $1.19 per diluted share in the quarter, compared to $1.64 per share a year earlier. Revenue went from $1.12 billion to $1.35 billion.

The company’s board of directors has declared a dividend of $0.50 per share for the first quarter, which will be paid on July 11.

Elbit had warned earlier in the year that a recent rise in its share price could have a significant impact on expenses due to stock-price-linked compensation plans for employees. He said earnings were reduced by $0.72 per share due to those payments.

Excluding one-time items, Elbit earned $1.22 per diluted share in the first quarter, from $1.72 a year earlier.

Tel Aviv-listed Elbit shares are up 36% this year.

Elbit said its backlog reached $13.7 billion at the end of March, the same as in the previous quarter. About 72% of that comes from orders outside of Israel, and about 55% is expected to be fulfilled in 2022 and 2023.

Reporting by Ari Rabinovitch Editing by Steven Scheer

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