15th Oct 2013 08:34
LONDON (Alliance News) - BATM Advanced Communications Ltd Tuesday reported higher third-quarter sales, buoyed by higher medical product sales, and said it was therefore retaining its full-year outlook, which it raised in August, for higher revenues and earnings before interest, tax, depreciation and amortisation than in 2012.
The company, which makes telecom network and medical lab equipment technologies, said third-quarter revenues were USD27 million, up from USD26.1 million a year earlier as it sold a higher proportion of more profitable medical technology, lifting its combined margin to 33.4%, from 31.7%.
"The diagnostics business has a very healthy order book with production ramping up month by month resulting in both increased sales and improving gross margin," the company said in a statement.
It also expects new equipment for the production of its medical diagnostics technology to arrive by the end of the year, allowing to further increase output to cope with the higher level of orders.
In the third quarter, 56% of sales came from its telecoms business, down from 58% a year ago, while medical division sales made up 44% of the total, up from 42%.
BATM is restructuring its telecoms business to focus on selling to the biggest customers, while providing its existing client base with "state-of-the-art" networking equipment. It recently won a deal with the Israel Electrical Company to provide a fiber network across Israel, and said it expects more opportunities like this to emerge. Last month it appointed a new head for its telecoms business.
In August, the company had reported a wider net loss for the first half of its financial year as currency exchange rates went against it and caused a financing loss, but its revenues and gross margins rose and it raised its full-year forecasts. The company said both its telecoms and medical units grew in the six months to June 30 despite its markets remaining challenging.
At that time, It said the delays its medical division experienced fulfilling orders in the second-quarter because suppliers didn't deliver components on time, had ended.
BATM shares were up 1.8% at 17.81 pence Tuesday morning, meaning its is now up 6.3% so far in 2013.
By Steve McGrath; [email protected]; @stevemcgrath1
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