Mti Wireless Regulatory News (MWE)

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)

10 May 2017

MTI Wireless Edge Ltd

("MTI" or the "Company")

Financial results for Q1 2017

MTI Wireless Edge Ltd. (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announces its unaudited results for the three months ended 31 March 2017.

Highlights:

· Revenues increased by 18% year-on-year to $6.2m (Q1 2016: $5.3m)

· Gross profit increased 38% year-on-year to $2.46m (Q1 2016: $1.78m)

· Operating profit of $0.45m (Q1 2016: loss of $0.1m)

· Earnings per share of 0.43 US cents (Q1 2016: loss of 0.29 US cents)

· Shareholder's equity grew during the period to $19.4m (31 December 2016: $18.9m), equivalent to 28.4 pence per share.

Dov Feiner, CEO of MTI Wireless, commented:

"During the first quarter of 2017 we continued to see growth in both segments of our business. In our wireless controller segment, via Mottech, we see many additional opportunities to grow the business in various geographical areas, some of which we announced recently. In the antenna segment we continue to see good demand in all areas (military, RFID and broadband access) and given the current orderbook and pipeline of opportunities in the antenna segment, we have a strong belief that the growth will continue in 2017 and beyond.

Notwithstanding the decline in value of the US dollar against the New Israeli Shekel in Q1 2017 we were delighted to grow the operating profit, as this decline is reflected in the higher financial costs we incurred during the quarter. We believe that once the exchange rate stabilises our net earnings will grow even further".

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About MTI Wireless Edge

MTI is engaged in the development, production and marketing of high quality low cost, flat panel antennas for commercial and military applications. Commercial applications include: WiMAX, Wireless Networking, RFID readers &, Broadband Wireless Access. With over 40 years' experience of supplying antennas 100KHz to 90GHz, including directional antennas and Omni directional for outdoor and indoor deployments including Smart Antennas for WiMAX, Wi-Fi, Public Safety, RFID and for Base Stations and Terminals - Utility Market. Military applications include a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.

Via its subsidiary, Mottech Water Solutions Ltd, MTI is also a leading provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies. Mottech, headquartered in Israel, is the global prime distributor of Motorola for the IRRInet remote control solutions serving its customers worldwide through its subsidiaries and a global network of local distributers and representatives. It utilizes over 25 years of experience in providing its customers with remote control and management systems which ensure constant, reliable and accurate water usage, while reducing operational costs and maintenance costly expenses. Mottech's activities are focused in the market segments of agriculture, water distribution, Municipal and Commercial Landscape and Wastewater and Storm water Reuse.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31, 2017:

(*) less than 1 thousand dollar

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31, 2016:

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the year ended December 31, 2016 :

(*) less than 1 thousand dollar

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

Appendix A - Non-cash transactions:

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General:

Corporate information:

M.T.I Wireless Edge Ltd. (hereafter - the "Company") is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998 as a wholly- owned subsidiary of M.T.I Computers and Software Services (1982) Ltd. (hereafter - the "Parent Company"), commenced operations on July 1, 2000 and since March 2006, the Company's shares have been traded on the AIM market of the London Stock Exchange.

The formal address of the company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.

The Company is engaged in the development, design, manufacture and marketing of antennas and accessories.

Via its subsidiary, Mottech Water solutions Ltd., the Company is also a leading provider of remote control solutions for water and irrigation applications based on Motorola IRRInet state of the art control, monitoring and communication technologies.

Note 2 - Significant Accounting Policies:

The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").

The interim consolidated financial information set out above does not constitute full year end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2016 was approved by the board on February 15, 2017. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of March 31, 2017 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2016 and for the year then ended and with the notes thereto, The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2016 are applied consistently in these interim consolidated financial statements.

Note 3 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the three months ended March 31, 2017 and 2016, respectively and for the year ended December 31, 2016.

Note 4-TRANSACTIONS AND BALANCES WITH RELATED PARTIES:

The following transactions occurred with The Parent Company and other related parties:

Compensation of key management personnel of the Group:

*) Including Management fees for the CEO, Directors Executive Management and other related parties

All Transactions are made at market value.

Balances with related parties:

Note 5 - SIGNIFICANT EVENTS:

During January 2017, an employee exercised options over 60,000 shares in exchange for a consideration of approximately of $7,000.

Note 6 - SUBSEQUENT EVENTS:

On April 4, 2017 the company paid a dividend of 1 cent per share totaling approximately $236,000 and in addition 1,022,328 new ordinary shares were issued to qualifying shareholders that chose the scrip dividend alternative.