Last checked at 13 Sep 2010 07:00
13 September 2010
BATM Advanced Communications Limited
Interim Management Statement
BATM Advanced Communications Limited ("BATM" or the "Company") (LSE: BVC), a leading designer and producer of broadband data and telecoms systems and medical laboratory systems, is today issuing its Interim Management Statement for the period from 1 July 2010 to 31 August 2010.
Current trading update
Total revenues in the first two months of the second half of 2010 were $ 18.6 million, compared with $19.1 million in the equivalent period in 2009. Revenues for the period are broadly inline with those of the equivalent period in 2009 and also with management's expectations.
During these two months the sales mix was 68% from the Telecoms division and 32% from the Medical division as compared to 75% and 25% in the second half of 2009 and 65% and 35% in the first half of 2010.
The gross margin has slightly increased during the first two months of the second half of 2010 over the first half of 2010.
Financial position
The Company's balance sheet remains very strong and at the end of August the effective cash balance stood at $53.4 million, a decrease of $9.4 million compared to the position at 30 June 2010, largely due to the Dividend payment in July amounted to $8.8 million and a slightly increase in inventory balances.
Outlook Despite the decline of revenues from OEM sales, substantial orders have been received from Tier 1 customers in the US and higher demand for backhaul bandwidth, believed to be mainly due to the introduction of the Iphone4. BATM expects this demand to continue and is ramping up production so deliveries could be accelerated in Q4.
The medical division continues to make progress as was observed in H1 results. Field trials that started with the ISS (Electronically controlled Medical waste disposal) show very good results with orders received for units even before trials are completed. Management remains confident it will achieve its forecasts for the full year 2010 as published in our H1 report.
BATM will conduct a detailed investors and analysts meeting in London on 13 September giving details of its strategy and sales prospects for the years 2011-2013. Presentation materials have been posted in the Investors section of the BATM website.
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Enquiries
BATM Advanced Communications +972 9866 2525
Dr Zvi Marom, Chief Executive
Threadneedle Communications 020 7653 9850
Josh Royston / Graham Herring
Singer Capital Markets Ltd 020 3205 7626
Shaun Dobson
Shore Capital 020 7408 4090
Pascal Keane