MTI Wireless Edge Limited (LON:MWE) Chief Executive Officer Dov Feiner caught up with DirectorsTalk to discuss their new military contract win, when they expect revenues and the outlook for the antenna business
Q1: So we’ve just seen the announcement of a new contract win and we understand that this is a new customer in the military sector, can you tell us when you expect to record the revenue?
A1: Well obviously as it is a military contract, I cannot elaborate on the detail of the client and the type of antenna system as they are confidential. However I can say that this is a new and leading customer in the military market and we expect that the revenue from the order, that it’s about $1.8 million order, will start to allocate in this quarter at Q2 and it’ll be until Q2 2018. I can add that I believe that this project itself will even increase and MTI Wireless Edge are optimistic that this will be the start of a long-time relationship and future orders from this customer. I must say that I am very proud getting this order as it has put us again as a leading company in the military antenna market.
Q2: Now we note the slow start to the year’s sales due to a key customer in Q1 that de-stocked their inventory, does this make up the shortfall?
A2: Yes, we expect this will make up for shortfall in revenue. We have had a number of smaller wins and some new customer and we also expect our key customer to start restocking again, thus we can safely assume that the revenue will return to normal and meet analyst expectations.
Q3: What is the outlook for the antenna business then?
A3: It’s a good opportunity to remind that we MTI Wireless Edge are in three different segments. In the military market I can say today that we’re much stronger today and quite confident regarding our sales increasing in this year and the year coming. In the RFID market there is continuing increasing sales, you can already see it in Q1 results and I assume it will be better than 2015 and I feel really a nice increase in this market. In the broadband wireless market, including the 60-80 GHz product, we expect our sales to grow back to what they were and even increase, we have already received new orders, as I told several times, we entered a new 60-80 GHz product and we have already got order for it. We have been acknowledged as a superior product by a number of key customers and a major player in the market that tested our antenna and compared it to our competitors and they saw it as superior in the results. In the 80GHz market we see some of our customers return to market so we can safely assume that this market will be growing too. A number of broadband customers are involved in a major project which will probably send more business our way so again I can say, and as I said several times during this interview, I see the future looking promising.
