Light Reading

BATM Provides Q1 Update

Light Reading
News Wire Feed
Light Reading
5/6/2014
50%
50%

HOD HASHARON, Israel -- BATM Advanced Communications Limited (LSE: BVC; TASE: BATM), a leading provider of real-time technologies for the networked telecoms and medical laboratory equipment markets, announces its interim management statement for the period from 1 January 2014 to 31 March 2014.

As stated at the time of the full year results on 25 February, the Group entered 2014 maintaining the positive momentum of Q4 2013, particularly in the Medical division. Consequently, total revenues, gross profit and operating profit for the first quarter of 2014 were slightly ahead of management expectations. Whilst the Medical division demonstrated an 8% year-on-year growth, revenues in the Telecom division were lower as the business begins to recover following the implementation of the new strategy in the second half of 2013. As a result, total revenues for the first quarter of 2014 were $27.8m (Q1 2013: $30.2m).

The sales mix consisted of 45% from the Telecom division and 55% from the Medical division compared with 54% and 46% respectively in the first quarter of 2013, highlighting the growing contribution of the Medical business. The blended gross margin for the quarter was 33.8% as a result of the higher revenue contribution from the Medical division, compared with 35.9% during the first quarter of 2013 and 34.7% for the full year 2013.

The Group's balance sheet remains strong with an effective cash balance of $35.9m as of 31 March 2014 (31 December 2013: $40.8m; 31 March 2013: $42.1m). The sequential decline reflects normal seasonality and includes BATM's investment in Myanmar.

Medical division

  • The distribution business saw organic growth, ramping up in all territories
  • Diagnostics:
    - The diagnostics business is increasing production of both reagents and machines with its joint venture in China commencing sales which is expected to grow progressively throughout the year
    - At the end of March 2014, as reported recently, the diagnostics business was awarded a contract by the Ministry of Health in a major country in Latin America to replace the incumbent supplier and provide the Group's closed system immune diagnostics instruments and reagents to detect tumour markers to laboratories throughout the country
    - Several new reagents are expected to be approved during the year in numerous territories supporting continued growth
    - On track to introduce full solution for carrying out HbA1C blood tests to detect diabetes
  • Sterilization:
    - The sterilization and pathogenic waste management business is growing rapidly with several orders won and a number of others believed to be in the pipeline
    - The business is expected to move to a much larger facility, near to its current location in Hungary, by the end of May 2014 in order to process the anticipated increase in orders

    Telecom division

  • The Telecom division during Q1 remained focused on the new strategy of concentrating on Tier 1 clients, SDN (Software Driven Networks) and NFV (Network Functions Virtualization). The division registered orders from new customers and is undertaking several POCs (Proof Of Concept) with major businesses
  • The previously reported fiber network initiative, which is being rolled out with Cisco Systems, ViaEuropa and the Israeli Electrical Company, is expected to connect the first customers by the middle of 2014
  • At the end of April 2014, post period, the cyber operation received a new order worth over $2m from a major defense customer. The contract is for networking gear with extensive cyber capacity to be delivered in 2014. BATM believes this will lead to more substantial orders in due course

    Outlook
    The Medical division has made a strong start to 2014, with a number of developments in both the diagnostics and sterilization businesses. Management expects this to continue throughout the year. For the Telecom division, the Group continues to see improvements due to the strategic shift implemented in the second half of last year. There is increased interest in its products from Tier 1 customers and it is expected to deliver improved results in the second half of 2014.

    As a result of the above, combined with the initial visibility of the forthcoming quarters, the Board feels confident of delivering improved results in 2014 compared with 2013, with good growth momentum going forward.

    Telco Systems (BATM)

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Flash Poll
    From The Founder
    Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
    LRTV Documentaries
    CableLabs' Clarke Updates Cable Virtualization

    4|23|15   |   05:41   |   (1) comment


    Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. II

    4|23|15   |   08:19   |   (1) comment


    In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. I

    4|23|15   |   09:27   |   (3) comments


    In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
    LRTV Documentaries
    LTE Paves the Way for the 5G Revolution

    4|20|15   |   4:20   |   (0) comments


    Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

    4|15|15   |   3:17   |   (0) comments


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    LRTV Huawei Video Resource Center
    What's in Store for Huawei & DataCore?

    4|10|15   |   05:44   |   (0) comments


    At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
    Upcoming Live Events
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
    Hot Topics
    What if the Comcast Merger Fails?
    Mari Silbey, Independent Technology Editor, 4/20/2015
    Google's WiFi-First Mobile Service 'Fi' Is Here
    Dan Jones, Mobile Editor, 4/22/2015
    Comcast Merger May Hinge on Hulu
    Mari Silbey, Independent Technology Editor, 4/22/2015
    Comcast Formally Ends Its Bid for TWC
    Mari Silbey, Independent Technology Editor, 4/24/2015
    Google Ready to Release Thousands of Loons
    Sarah Thomas, Editorial Operations Director, 4/20/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    Cats with Phones
    Learning Curve Click Here
    Pierre could never remember how to use Excel.
    Latest Comment