Batm Advanced Regulatory News (BVC)

29 Oct 2009 07:00



BATM Advanced Communications Limited

Interim Management Statement

BATM Advanced Communications Limited ("BATM" or "the Company") (LSE: BVC), a leading designer and producer of Carrier Ethernet and metropolitan telecom systems, is today issuing an Interim Management Statement which covers the period from 1 January 2009 to 30 September 2009.

Current trading update

Total revenues in the first nine months of 2009 of $ 101.9 million have slightly increased on the same period in 2008 and are in line with our expectations. The sales mix between the Telecoms and Medical sectors remains consistent with that reported for the six months ended 30 June 2009, as do the gross margins. Net income for the first nine months of 2009 is also in line with management's expectations.

Financial position 

The Company's balance sheet remains very strong and at the end of September the effective cash balance stood at $68.7 million, an improvement of $11.4 million compared with the position at the beginning of the financial year. This is after $4.6 million of dividend payments in July, and $2.4 million in August for the purchase of offices in Foxboro, Massachusetts. These offices will begin operating as the headquarters  for Telco Systems from the middle of 2010.

Rural Utilities Service Acceptance

Part of the BATM Ethernet switching family has passed the quality testing standards set out by the United States Department of Agriculture's Rural Utilities Service (RUS). This approval enables BATM to tender for rural community broadband network projects which utilise Federal stimulus package funding.

Outlook

Management remains confident that the Group will meet management's full year targets. Looking ahead to 2010, management believes that the gross margin in the medical sector will begin to increase, and that in addition the Group will benefit from revenues from new channels in both the Telecoms and Medical sectors. 

Ends 

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