BATM Full Year 2013 Results
Feb 25, 2014
25 February 2014
BATM Advanced Communications Limited
(“BATM” or the “Group”)
Preliminary results for 2013
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 unaudited preliminary results for the year ended 31 December 2013.
• Group revenues for the full year amounted to $114.2m (2012: $113.6m).
• Gross profit of $39.6m (2012: $39.0m).
• EBITDA of $2.1m (2012: $4.3m).
• Net loss for the year was $4.5m (2012: $0.7m profit) after an adjustment in the valuation of intangible assets relating to the acquisition of Vigilant in 2008.
• Basic loss per share from continuing and discontinued operations of 1.12¢ (2012: 0.18¢ earning per share).
• As at 31 December 2013, the Group had cash and cash equivalents and financial assets of $40.8m (30 June 2013: $44.5m; 31 December 2012: $46.2m), following a previously announced investment of $3.5m into the consortium to build fiber optic infrastructure network in Israel.
• Medical division (47% of total sales):
• Strong momentum in the second half of 2013, particularly in the fourth quarter, resulting in two of the division’s three businesses reaching profitability.
• Significant milestone achieved in the sterilization business with delivery of the first FDA-approved units to customers in the US during the fourth quarter.
• Diagnostics business secured an important OEM contract for its HIV kits, which commenced generating revenues in 2013.
• Received certifications of diagnostic kits in several new geographies.
• Diagnostics business also saw improved performance of its clinical chemistry instruments as a result of bundling them with reagents and selling them together.
• Post period-end, secured an initial $2.5m contract in Myanmar, expected to be delivered in H1 2014, for distribution and provision of sterilization and diagnostics products. Also signed cooperation agreement with Roche, one of the leading suppliers in this field, for this territory.
• Telecom division (53% of total sales):
• Implemented a strategic change to focus on Tier 1 clients, SDN (Software Defined Networking) and NFV (Network Functions Virtualization) solutions using its T-Marc, T-Metro 8000 and Edge Genie platforms.
• Ariel Efrati, former senior vice president at Amdocs (NYSE: DOX), appointed as Managing Director.
• Orders received from major OEM to provide networking platform to its Tier 1 customers.
• Fiber optic project being rolled out together with Cisco Systems and Israeli Electric Company, with first client expected to be connected in H1 2014.
• Slight year-on-year decline in revenues reflecting slowdown in capital expenditure in North and South America and strength of Israeli shekel against US dollar.
• Completed sale of legacy business to a management led buy-out and re-integrated one product line back into the division’s portfolio.
Dr Zvi Marom, Chief Executive Officer of BATM, said:
“The Group is making progress in both of its divisions, with the Medical division experiencing good growth and the Telecom division seeing early positive signs from the change of its strategy to focus on Tier 1 clients.
“Looking ahead, the momentum of the fourth quarter has continued into the new year, particularly in the Medical division. We expect the Medical division to achieve another year of solid organic growth with a greater number of products being delivered to more territories and increased cooperation with major industry players. In the Telecom division, we expect to start benefitting from sales to Tier 1 companies. We believe that the steps taken in 2013 will result in BATM delivering growth and improved results in 2014 compared with 2013.”
BATM Advanced Communications
Dr Zvi Marom, Chief Executive Officer +972 9866 2525
Ofer Bar-Ner, Chief Financial Officer
Stuart Andrews, Henrik Persson, Corporate Finance +44 20 7220 0500
Brian Patient, Corporate Broking
Pascal Keane +44 20 7408 4090
Harry Chathli, Claire Norbury +44 20 7618 9100
Conference call and Webcast presentation
Dr Zvi Marom, Chief Executive Officer, and Ofer Bar-Ner, Chief Financial Officer, will be hosting a conference call for analysts and investors at 9.00am GMT today. There will also be a live audio webcast of the conference call, which can be accessed via the investor section of the Group’s website: www.batm.com
• International: +44 203 139 4830
• UK freephone: 0808 237 0030
• Israel toll number: 037208677
• US freephone: 1 718 873 9077
• Passcode: 64148495#
An archive copy of the conference call and webcast will be made available after the event.