11th Mar 2019 11:48
LONDON (Alliance News) - MTI Wireless Edge Ltd on Monday reported a rise in revenue and profit from its merger with MTI Computers & Software Services Ltd but also reported organic growth in a "significant structural year" for the company.
In 2018, MTI Wireless' pretax profit increased 13% to USD2.7 million from USD2.4 million. The company's profit from operations increased 82% to USD2.9 million, assuming the merger with MTI Computers & Software Services, which was completed in August, was in effect for the whole year.
Organically, profit from operations increased 21%.
The company's revenue increased 35% in 2018 to USD35.5 million assuming the merger was in effect for the full year and 2.3% organically.
MTI Wireless declared a final dividend of USD0.015 per share, 25% lower than 2017's final dividend of USD0.20 per share.
"I am pleased to report on our audited results for 2018, during which we made a significant structural change via the merger of the company with our former controlling shareholder, MTI Computers & Software Services," said Chair Zvi Borovitz.
"Some of the benefits of the merger are already seen via the cost savings in the last quarter of 2018 (the first full quarter post-merger), during which the company generated USD1 million of profit from operations for the first time, which represented more than 35% of the company's total profit from operations for the entire year."
Borovitz continued: "Business wise the company continued to experience growth in revenue and profits. We were able to secure new projects in both our antenna and representation divisions, which will benefit us in 2019 onwards. We were able to complete the registration of Mottech in China and strengthened our sales and marketing teams in China, as well as in other key territories to lay the foundations to capitalize on the enormous opportunities for future growth."
Chief Executive Dov Feiner added: "We enter 2019 with a healthy order book and a large pipeline of opportunities in the various segments of the business, which provides us with great confidence in the future growth potential of the business."
Shares in MTI Wireless Edge were up 5.0% Monday at 21.00 pence each.
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