11th May 2016 09:50
LONDON (Alliance News) - MTI Wireless Edge Ltd Wednesday said it remains confident in its outcome for 2016, as it saw revenue up 48% in its first quarter, boosted by its acquisition of wireless irrigation provider Mottech.
This helped offset a 34% revenue decline at its antenna business, mostly due to destocking at a key customer. MTI Wireless expects revenue from this customer to return to normal in the second quarter.
MTI Wireless reported a pretax loss of USD216,000 for the quarter, swung from a pretax profit of USD45,000 in the previous year, as a rise in revenue to USD5.3 million from USD3.5 million was offset by higher cost of sales, distribution expenses and general and administrative costs.
"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," said Chief Executive Officer Dov Feiner in a statement.
"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," Feiner added.
Shares in MTI Wireless were down 13% at 19.45 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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