20th Feb 2015 09:13
LONDON (Alliance News) - MTI Wireless Edge Ltd shares rose on Friday after it increased its dividend for 2014 on a doubling its relatively small pretax profit in the year, driven by revenue growth.
MTI Wireless shares were up 6.2% to 10.35 pence per share on Friday morning.
The company, which manufactures flat panel antennas for broadband wireless access, reported a pretax profit of USD153,000, almost double the USD86,000 it reported a year earlier, driven by revenue growth.
Revenue increased to USD14.3 million in 2014, compared to USD13.4 million in 2013. The company generates revenue from three product areas: wireless networking antennas, radio-frequency identification (RFID) antennas and military antennas.
MTI Wireless said it will pay a full-year dividend of USD0.68 per share, up 17% from USD0.58 per share in 2013.
"We strongly believe it is in the interest of shareholders to receive a yearly yield on their investment, while at the same time the company manages its earnings and cash generation," said MTI Wireless.
MTI Wireless said its military segment received "good demand" and said it expects it to continue to perform well in the near term, while the RFID market traded fairly flat from 2013 as the market is "currently in its initial stages."
"The increase in revenue, together with our hard work on controlling our costs, enabled us, once again, to improve our operational margin. We view the future with confidence as our revenues continue to increase.," said Chief Executive Dov Feiner.
To achieve future growth, the company aims to expand its market share in the antenna markets for broadband wireless communication as well as its military capabilities and portfolio.
"We are continuing to develop our 60-80 gigahertz range of antennas and customer base, to strengthen our positioning in the market including investment in new technologies and in 2014 we initiated registration of two new patents," it said.
By Joshua Warner; [email protected]; @JoshAlliance
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