MTI Wireless Edge Ltd. (LON:MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solution provider, today gave DirectorsTalk its unaudited results for the three months ended 31 March 2016.
Highlights:
— Revenue increased by 48% year-on-year in the first quarter to US$5.25m (Q1 2015: US$3.54m) due to the acquisition of Mottech. The Company’s antenna business saw a decrease in turnover of 34%, mainly due to de stocking of a key customer. The Board expects revenues from this customer to return to normal in Q2 2016.Gross profit increased by 40% year-on-year to US$1.8m (Q1 2015: US$1.3m).
— Operating loss of US$0.1m in the quarter (Q1 2015: profit of $US0.1m) due to low revenue levels in the antenna business.
-- Cash flow generated from operation of $US0.76m (Q1 2015: cash use of $US0.4m) -- Dividend of US 1.1 cent per share for the year ended 31 December 2015 paid on 1 April 2016.
— Shareholder’s equity of US$18.5m (at December 31, 2015: US$18.4m), equivalent to 24.4 pence per share.
-- The board remains confident in the outcome for the year to 31 December 2016.
Dov Feiner, Chief Executive Officer, commented: “I am delighted with the integration of Mottech into our company and its contribution to revenue and profit growth. Mottech has made strong progress in the irrigation business in the first quarter of 2016 and we expect this to continue throughout 2016. This growth was offset by slow antenna revenues in the quarter which was mainly due to the fact that our key customer in the antenna sector destocked its antenna inventory in the first quarter. We anticipate a much better performance with this customer for the reminder of the year as their market recovered and they fulfill a backlog of orders. This, together with positive signs in the 80GHz product line and the pipe line of opportunities we see makes us believe that the combined business will continue to grow and continue to be successful in 2016”.
