28th Aug 2018 14:08
LONDON (Alliance News) - MTI Wireless Edge Ltd on Tuesday said its profit declined in the first half of 2018 hurt by higher expenses associated with a merger.
The wireless broadband antennae manufacturer's pretax profit fell to USD859,000 in the six months to the end of June from USD1.4 million reported for the same period the year prior, despite revenue rising to USD17.1 million from USD16.6 million.
MTI Wireless said the result was hurt by higher general & administrative expenses, which grew year-on-year to USD2.0 million from GBP1.9 million, including include a one-time merger cost.
Research & development expenses also increased to USD561,000 from USD461,000.
Back in May, the company has agreed a merger with majority shareholder MTI Computers & Software Services Ltd. The transaction was completed on Monday last week.
Finance income declined in the first-half to USD25,000 from USD239,000, while finance expenses widened to USD227,000 from USD115,000.
On a divisional basis, revenue in the wireless controller segment jumped by 15% year-on-year, although the antenna division revenue was 7% lower, despite growing demand for MTI Wireless' military and millimetre wave solutions, it said.
Looking ahead, MTI Wireless expects to end 2018 with higher revenue growth, while also saving USD100,000 annually due to the merger.
"We are very pleased to have completed the merger and are excited with the opportunities in each of our business segments," said Chairman Zvi Borovitz.
"Overall, in all segments, we have a strong belief that our growth will continue into 2019 and beyond," added Borovitz.
Shares in MTI Wireless were trading 2.8% lower on Tuesday at 22.84 pence each.
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