MTI Wireless Edge Limited (LON:MWE) CFO Moni Borovitz talks to DirectorsTalk about it’s impressive financial results for the year ended 31 December 2015.
Q1. Moni, you’ve just released your financial results for the year ended 31st December 2015 in which you announced a 36% revenue growth which was very impressive – what were the drivers?
A1. Firstly, we made good progress in our core antenna business particularly in the military and RFID segment, as well as market development in the 60-80GHz market segment.
Secondly, we acquired the company Mottech in June 2015, which made a significant contribution to the second half. This acquisition positions us a service and technology provider in the wireless monitoring and remote control sector which we believe is a market that we believe will significantly grow in the coming years.
Q2. Profits from operations increased a stunning 5 times – do you think this will continue ?
A2. Yes, we believe it will. The core antenna business remains profitable, and the acquisition of Mottech moves us up the food chain into services which include contracts with recurring income. We believe this combination will deliver continuous annual profits for the group.
Q3. Now MTI Wireless Edge Ltd has continuously paid a dividend in previous years, what is the plan for this year ?
A3. MTI Wireless Edge has been a continuously profitable company and has paid dividends. In line with our dividend policy we will be paying a dividend of $1.1 cents per share to shareholders who are registered with the company on the 9th of March. We are forecasting to be profitable in 2016 and expect to continue paying dividends in the future.
Q4. What is the outlook for 2016?
A4. Firstly, we are very committed to our core antenna business particularly the military and RFID market segments, as well as the roll out of new products in the mobile back-haul 60-80GHz range which we expect to grow significantly.
We are also very optimistic about the prospects for Mottech. We have now moved them into our campus and we are working on business integration and a business expansion plan for 2016. We look forward to a full 12 month contribution of revenues from this business unit in 2016 and long term recurring revenues.
We enter this new year with an order book of $6.7m. We re very confident about 2016 and the management are very focused on delivering continuous growth.
