(Alliance News) - BATM Advanced Communications Ltd on Monday announced a stellar first half of 2020, following a strong response to the Covid-19 pandemic by its Bio-Medical division, ahead of market expectations.
The provider of real-time technologies for networking solutions and medical laboratory systems posted a pretax profit for the first half ended June 30 of USD1.9 million, widening from USD1.2 million a year prior.
Revenue was up 38% to USD77.4 million from USD56.2 million a year ago.
BATM's Bio-Medical division saw a revenue increase of 66% in the half to USD50.0 million from USD30.2 million year on year. This is owed to its quick response to the Covid-19 outbreak which saw the division developing antigen and antibody diagnostic tests and manufacturing critical care ventilators.
The Network & Cyber division's revenue increased 5% to USD27.4 million from USD26.0 million a year prior after seeing a little more disruption due to travel restrictions posed by lockdowns. The company said however that its diversified revenue-based allowed for overall growth thanks to sales of its cyber and information & communications technology solutions.
BATM looks forward its network function virtualisation solution, which the company expects to become a key growth engine. So far, BATMM has conducted a few successful proof-of-concepts with tier 1 operator in Europe and APAC, including Vodafone Group PLC.
BATM anticipates its full-year revenue to increase by 32% to the year prior, which is ahead of the updated market expectations published in June. It expects both its Bio-Medical and Networking & Cyber divisions to see revenue growth for the full year of 2020.
Earnings before interest, tax, depreciation, and amortisation is expected to increase by 48%, significantly ahead of market expectations.
The company expects to reinstate its dividend policy at the end of the year.
Chief Executive Zvi Marom said: "Looking ahead, we entered the second half of the year with an increased backlog and with sustained demand for our Covid-19 solutions. We continue to achieve important operational milestones that significantly advance the execution on our strategy in network functions virtualisation and molecular diagnostics - our key future growth markets. The strong cash position at period end combined with the cash generation expected for full-year 2020 gives the board the confidence to reinstate its dividend policy."
The company added: "The Covid-19 pandemic has shifted the attention of public health authorities globally onto the importance of medical diagnostics, with a focus on rapid diagnosis to enable the correct course of action to be taken without delay. This accelerates a trend that, for several years, BATM has been developing solutions to address."
BATM shares were up3.7% at 126.50 pence each on Monday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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