20th Feb 2014 10:36
LONDON (Alliance News) - MTI Wireless Edge Ltd Thursday said it swung back to a net profit in 2013, as revenues rose on the back of strong military orders and new commercial products and it cut its general and administrative costs.
The maker of antennas and antenna systems, including flat panel antennas for fixed wireless broadband, reported a net profit of USD0.4 million for 2013, compared with a loss of USD0.2 million in 2102 as revenues rose to USD13.4 million, from USD12.7 million. Its gross profit rose to USD4.8 million, from USD4.4 million.
MTI was hit during the year after key customer Alvarion went into receivership, but it said revenues in its Fixed Broadband segment suffered "only a minor decline" of 7%. Excluding Alvarion, its overall revenues would have increased by 7% year on year, rather than 6%, it said.
The company said revenues in its military segment had risen 65%, its radio-frequency identification sales grew to become 12% of its business, while it had secured new customers for its 60-80 gigaghertz products that should give it a boost in coming years.
"We continue to believe that of the market demand for our products, as part of the increasing demand for broadband, will strengthen in the coming years," Chairman Zvi Borovitz said in a statement.
The company has been investing in a new range of 60-80 gigahertz products that it expects to drive growth in the next few years.
"Our military segment backlog for 2014 makes us confident that we can maintain a similar level of business in this segment as in last year," he added.
"Our immediate focus is to win further major deals and maintain support of our existing customer base in all our business segments. In 2014 we will continue to grow both our business and profits. The main thrust of our strategy will be to increase operations at our facility in India, which generated 30% of our commercial antenna revenues in 2013," the company said.
It declared a final dividend of 0.68 US cents a share.
MTI Wireless Edge shares were up 16.3% at 10.9 pence Thursday morning, one of the top gainers on the London market and a two-and-a-half year high for the stock.
By Steve McGrath; [email protected]; @SteveMcGrath1
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