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
    Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
    Live Streaming Video
    BTE 2015 Sponsor Keynote: HP
    Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
    LRTV Custom TV
    Red Hat Demo

    7|2|15   |   10:53   |   (0) comments


    Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
    LRTV Custom TV
    Red Hat's Approach to OpenStack Adoption

    7|2|15   |   5:17   |   (0) comments


    Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
    LRTV Custom TV
    The New IP Goes Mobile With vEPC

    7|2|15   |   1:12   |   (0) comments


    Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
    LRTV Custom TV
    Making Business Sense of SDN

    7|2|15   |   1:42   |   (0) comments


    Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
    LRTV Custom TV
    NFV Will Be Here Sooner Than You Think

    7|2|15   |   2:22   |   (0) comments


    Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
    LRTV Custom TV
    The New IP Gains Traction With CSPs

    7|2|15   |   1:42   |   (0) comments


    Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
    LRTV Custom TV
    It's (Real) Time for Analytics

    7|2|15   |   1:42   |   (0) comments


    Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
    LRTV Documentaries
    IoT in Action

    6|30|15   |   1:39   |   (8) comments


    Two co-workers discuss the benefits of IoT technology.
    LRTV Interviews
    Ericsson Opens Up on OPNFV

    6|30|15   |   14:16   |   (1) comment


    Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
    LRTV Custom TV
    NetNumber Founder Discusses NFV/SDN Impact on SP Networks

    6|26|15   |   4:15   |   (0) comments


    NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
    LRTV Custom TV
    Orchestrating NFV vCPE Services Across Multivendor Networks

    6|26|15   |   5:46   |   (0) comments


    Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
    LRTV Custom TV
    ZTE at LTE Summit Amsterdam 2015

    6|26|15   |     |   (0) comments


    As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    All Upcoming Live Events
    Infographics
    Hot Topics
    Who's Feeding Fiber to LinkNYC Hotspots?
    Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
    What's a Gigabit Good For?
    Carol Wilson, Editor-at-large, 7/1/2015
    Colt to Jettison Ailing IT Business
    Iain Morris, News Editor, 6/30/2015
    Eurobites: Activist Investor Takes Stake in AlcaLu
    Paul Rainford, Assistant Editor, Europe, 6/30/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
    Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
    Cats with Phones