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
    Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (1) comment


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Between the CEOs
    Video Exclusive With Basil Alwan, Alcatel-Lucent

    7|24|15   |   26:44   |   (5) comments


    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    LRTV Custom TV
    VDF: Enable the Financial With Mobile Money

    7|20|15   |   06:53   |   (0) comments


    Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
    LRTV Custom TV
    Telefónica on OSS Transformation

    7|20|15   |   06:01   |   (0) comments


    Jose Gonzales discusses the details of Telefónica's operation transformation program.
    LRTV Custom TV
    Judi Achmadi on Huawei's Cloud Storage Solution

    7|20|15   |   03:33   |   (0) comments


    Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
    LRTV Custom TV
    KPN Enlightening Digital Business & IT Transformation

    7|20|15   |   06:19   |   (0) comments


    Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
    LRTV Custom TV
    Stratus Telco-Grade Cloud Solutions & NFV

    7|20|15   |   07:34   |   (0) comments


    Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
    LRTV Documentaries
    The Six Million Dollar Business Man

    7|20|15   |   01:52   |   (0) comments


    Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
    Between the CEOs
    CEO Chat With Anukool Lakhina, Guavus

    7|20|15   |   38:51   |   (1) comment


    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    LRTV Custom TV
    IBM's Flash Storage With Intel QuickAssist

    7|20|15   |   03:18   |   (0) comments


    Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
    LRTV Huawei Video Resource Center
    Thailand's AIS: Transforming to an FMC Operator

    7|17|15   |   4:53   |   (0) comments


    Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
    Hot Topics
    Robbins Succeeds Chambers as Cisco Changes CEOs
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
    Cable Feuds With Senate Dems Over STBs
    Alan Breznick, Cable/Video Practice Leader, 7/31/2015
    RJio to Launch Its Own 4G Devices Brand
    Gagandeep Kaur, Contributing Editor, 7/27/2015
    Easing the Tech Pains for the Homeless
    Carol Wilson, Editor-at-large, 7/28/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    Cats with Phones
    Comes With Free Phone Stand Click Here
    Who says cats don't have any skills?