& cplSiteName &

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
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    Private Company of the Year - Affirmed Networks

    6|27|16   |     |   (0) comments


    At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
    LRTV Custom TV
    Energy 2020: Growing Services, Not Consumption

    6|24|16   |   07:18   |   (0) comments


    Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
    LRTV Huawei Video Resource Center
    Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

    6|24|16   |     |   (0) comments


    To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
    LRTV Documentaries
    OPNFV Summit: Key Takeaways

    6|22|16   |   03:28   |   (0) comments


    MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
    LRTV Huawei Video Resource Center
    Bringing Ultra Broadband to the South Pacific

    6|22|16   |   7:55   |   (0) comments


    At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
    LRTV Custom TV
    Juniper's NFV Platform

    6|22|16   |     |   (0) comments


    A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
    Women in Comms Introduction Videos
    Infinera: The Glass Ceiling's Been Broken

    6|22|16   |   4:34   |   (0) comments


    Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
    LRTV Custom TV
    RAD Demonstrates SD-WAN Functionality at BCE 2016

    6|22|16   |     |   (0) comments


    In conjunction with Versa Networks, RAD demos a joint solution for SD-WAN implementation. The solution uses RAD's ETX-2i, a vCPE platform integrating a powerful IP and Carrier Ethernet NID/NTU with a field-pluggable x86 NFV module that runs Versa's FlexVNF for SD-WAN functionality. The demo implements SD-WAN over a simulated service provider footprint by deploying ...
    LRTV Custom TV
    Radware on Virtualizing Network Security

    6|21|16   |     |   (0) comments


    Radware's Michael O'Malley highlights the benefits for service providers of virtualizing network security.
    LRTV Huawei Video Resource Center
    Huawei 2016 UBBS World Tour: Singapore

    6|21|16   |   02:39   |   (0) comments


    Highlights from Huawei's UBBS World Tour event in Singapore.
    LRTV Custom TV
    The FlowBROKER Solution

    6|21|16   |     |   (0) comments


    During a demo at the Big Communications Event 2016, Accedian director of product line solutions Greg Spear demonstrates how the FlowBROKER distributed packet capture solution (part of Accedian's SkyLIGHT platform) can be used to troubleshoot and resolve QoE issues.

    FlowBROKER is the industry's first lossless remote packet capture solution, which uses ...

    LRTV Documentaries
    BCE 2016: Dell & the New World Order

    6|21|16   |   22:48   |   (0) comments


    Dell's Jim Ganthier on how the very essence of enterprise is being affected by digital disruption – and how the cloud can help companies find a path forward.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 6-8, 2016,
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    'Brexit' Vote Hits BT, Vodafone
    Iain Morris, News Editor, 6/24/2016
    AT&T Settles on LTE for Cellular IoT
    Dan Jones, Mobile Editor, 6/22/2016
    Google Fiber Buys Webpass in Wireless Play
    Iain Morris, News Editor, 6/23/2016
    Netflix Queues Up Video Downloads
    Mari Silbey, Senior Editor, Cable/Video, 6/23/2016
    AWS CEO: Enterprise Data Center Is Doomed
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 6/21/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
    Mark Dzuban, president and CEO of SCTE/ISBE, sits down with Steve Saunders in Light Reading's New York office to discuss the society's Energy 2020 campaign, including its mission to benefit the environment, enable economic benefits and the key challenges facing cable operators wanting to reduce energy consumption.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.