viewBATM Advanced Communications Ltd

BATM Advanced Comm - Interim Results

RNS Number : 4108J
BATM Advanced Communications Ld
19 August 2019

LEI: 213800FLQUB9J289RU66


19 August 2019         


BATM Advanced Communications Limited

("BATM" or the "Group")


Interim results for six months ended 30 June 2019


BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces its interim results for the six months ended 30 June 2019.


Financial Summary

·   Group revenue of $56.2m (H1 2018: $58.2m); on a constant currency basis, revenue was $58.4m

·   Gross profit of $15.3m (H1 2018: $16.5m)

·   Gross margin of 27.3% (H1 2018: 28.3%)

·   Adj.* operating profit of $1.6m (H1 2018: $0.6m loss)

·   EBITDA of $3.9m (H1 2018: $0.5m)

·   Earnings per share of 0.14¢ (H1 2018: 0.35¢ loss per share)

·  As at 30 June 2019, the Group had cash and financial assets of $16.9m (31 December 2018: $24.4m), following investments of $3.1m and increase in working capital

·  Successfully raised £14.1m (c. $17m) gross from new and existing investors, with the proceeds being received post period-end resulting in cash and financial assets at 31 July 2019 of $34.6m

* Adjusted to exclude the amortisation of intangible assets (see note 4)


Operational Summary

Bio-Medical Division (54% of total revenue)

·    Revenue of $30.2m (H1 2018: $29.6m)

·    Blended gross margin of 23.6% (H1 2018: 24.8%)

·    Distribution Unit

Strong growth in provision of cancer diagnostics tests in Israel, and received regulatory approval to offer further molecular genetics tests

Increase in revenue under contract with a large medical facility in Eastern Europe for diagnostic instruments and reagents

Doubled the number of pre-natal diagnostic tests provided by the Group's laboratory in Eastern Europe

·    Eco-Med Unit

Completed installation of large agri-waste treatment solution at a bovine slaughterhouse

Commenced delivery on first agri-waste treatment contract outside of Israel with a major food manufacturing group in the Philippines

·    Diagnostics Unit

Advanced engineering of NATlab through the Ador joint venture and established partnerships with several leading research institutions; signed conditional investment agreement for up to $30m, with first instalment of $14.5m received during the period; first instruments to be installed in hospitals this year

Increased sales of new highly-compact metabolism testing analyser, Hemo One

Sustained growth in sales of new molecular biology diagnostics Adaltis product line, and introduction of new reagents


Networking and Cyber Division (46% of total revenue)

·    Revenue of $26.0m (H1 2018: $28.6m)

·    Blended gross margin of 32.4% (H1 2018: 32.8%)

·    Networking Unit

Substantial progress under partnership with Arm to expand the Group's NFVTime ecosystem optimised for Arm infrastructure:

§ Developed new technology to enable significant increase in network traffic when licensing NFVTime on certain NXP Semiconductors processors

§ Entered into a strategic technology partnership with Clavister, a leader in high-performance cybersecurity solutions, to run its virtualised platform optimised for Arm-based infrastructure on NFVTime

Commenced generating revenue from sales of the Group's NFV products, which is expected to ramp up from H2 2019

Post period, launched T-Metro 8104, a new ultra-high capacity service aggregation and cloud gateway platform that is NFV-ready and is designed to leverage 5G and Multi-access Edge Computing (MEC)

Built strong backlog that is being delivered in H2 2019

·    Cyber Unit

Strong increase in revenue under previously-awarded contracts and received new orders worth $8.5m that are expected to be delivered during H2 2019:

Quick facts: BATM Advanced Communications Ltd

Price: 43.92

Market: LSE
Market Cap: £197.69 m

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