Mti Wireless Regulatory News (MWE)

30 Jul 2007 07:00

MTI Wireless Edge Limited30 July 2007 MTI WIRELESS EDGE LTD FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007 MTI Wireless Edge Ltd., (ticker: MWE) ('MTI' or 'the Company'), a market leaderin the manufacture of flat panel antennas for fixed wireless broadband, today announces its unaudited results for the six months ended 30 June 2007. Highlights •Revenue increased by 33% year on year to US$9.7m (H1 2006: US$7.3m) €18th consecutive quarter of revenue growth •Profit before tax up 47% year on year to US$2.1m (H1 2006: US$1.45m) •Net profits improved by 35% year on year to US$1.9m (H1 2006: US$1.4m) •Gross profit margin of 43% •Net cash at 30 June 2007 of $13.3m •Cash flow from operating activities of $1.1m Dov Feiner, Chief Executive Officer, commented:"The Board is pleased to deliver a solid first half trading performance with theGroup showing strong growth over last year and in line with management'sexpectations. There has been revenue growth across all of our divisions with theperformance in our military business proving particularly strong. Not only isthis evidence of the superiority of our technology but it also allows us tomaintain our considerable investment in R&D which enables the Group to maintainits market leading position. "Following our maiden dividend payment in February, it is the Board's intentionto maintain a dividend policy of returning to shareholders approximately 25% ofnet profits at the end of each financial year. "The much publicised interest in Wimax is creating strong demand for ourproducts which was typified by a recent good customer win in Asia worth severalhundred thousand dollars. In the first half of 2007 more than half of all unitssold were for Wimax applications. With our contracted order book remaininghealthy and the fixed wireless broadband market continuing to grow, the Boardviews the future prospects of the Company with confidence." Contacts:MTI Wireless Edge +972 3 900 8900Dov Feiner, CEOMoni Borovitz, Financial Director Blue Oar Securities Plc +44 20 7448 4400Luke AhernDavid Seal Daniel Stewart +44 20 7776 6550Lindsay MairTom Jenkins Threadneedle Communications +44 207 936 9605Graham HerringJosh Royston About MTI Wireless Edge MTI designs and manufactures flat panel antennas, largely supplied tointernational OEMs of fixed broadband wireless access systems. With over 30years of technical 'know-how', flexible high volume manufacturing capabilitiesand low failure rates, MTI's antennas now comprise approximately 25% of theglobal fixed broadband wireless antenna market. In addition, the Company hassuccessfully developed products for new commercial applications as wirelesssystems become increasingly prevalent in new markets. PROFIT AND LOSS STATEMENT For the six months ended June 30 Year ended December 31 2007 2006 2006 ----------------------- U.S. $ in thousands ----------------------- Revenues 9,731 7,290 16,463Cost of sales 5,587 4,061 9,159 Gross profit 4,144 3,229 7,304Research anddevelopment expenses 700 506 1,121Selling andmarketing expenses 968 893 1,783General andadministrative expenses 600 480 1,088 Operating profit 1,876 1,350 3,312Financial (income), net (258) (100) (472) Profit before taxation 2,134 1,450 3,784Tax on profit 249 58 161 Net profit 1,885 1,392 3,623 Earnings per share:Basic 0.0351 0.0312 0.0736 Diluted 0.0345 0.0295 0.0708 Weighted average number of shares outstanding: Basic 53,779,998 44,644,010 49,262,202 Diluted 54,598,079 47,264,710 51,182,578 BALANCE SHEETS 30.6.2007 30.6.2006 31.12.2006 ---------------------- U.S. $ In thousands ---------------------- ASSETSCURRENT ASSETS:Cash and cash equivalents 1,241 1,495 2,167Short-term investments 12,076 10,678 11,133Trade receivables 5,680 4,168 5,154Other receivables 169 181 206Inventories 2,034 1,287 1,724 Total current assets 21,200 17,809 20,384 LONG TERM PREPAID EXPENSES 60 28 32 PROPERTY AND EQUIPMENT, NET 1,541 1,415 1,435 OTHER ASSETS, NET 507 458 475 23,308 19,710 22,326 30.6.2007 30.6.2006 31.12.2006 ---------------------- U.S. $ In thousands ---------------------- LIABILITIES AND SHAREHOLDERS'EQUITYCURRENT LIABILITIES:Current maturities of long-termloans 65 87 87Trade payables 2,298 2,229 2,470Other accounts payables 1,212 883 1,047Total current liabilities 3,575 3,199 3,604 LONG-TERM LIABILITIES:Liabilities to banks - 65 22Accrued severance pay 277 208 231 277 273 253 SHAREHOLDERS' EQUITYShare capital 115 115 115Additional paid-in capital 16,357 16,357 16,357Retained earnings 2,984 (234) 1,997 Total shareholders' equity 19,456 16,238 18,469 23,308 19,710 22,326 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the six months ended June 30, 2007: Share capital Additional paid-in capital Retained earnings Total ---------------------------- U.S. $ in thousands ---------------------------- Balance at January 1, 2007 115 16,357 1,997 18,469 Changes during the sixmonths ended June 30, 2007: Dividend distributed - - (898) (898) Net profit - - 1,885 1,885 Balance at June 30, 2007 115 16,357 2,984 19,456 For the six months ended June 30, 2006: Share capital Additional paid-in capital Retained earnings Total ---------------------------- U.S. $ in thousands ---------------------------- Balance at January 1, 2006 2 7,561 374 7,937 Changes during the sixmonths ended June 30, 2006: Dividend distributed - - (2,000) (2,000) Issuance of share capital** * 79 - 79 Share capital as a result of split 80 (80) - - Additional capitalraised in Aim listing*** 33 8,797 - 8,830 Net profit - - 1,392 1,392 Balance at June 30, 2006 115 16,357 (234) 16,238 * Less than 1 thousands dollar.** Exercise of options of employees to shares, grant of options to directors and investors.*** Net of issuance expenses in the amount of $1,631 thousand. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY For the year ended December 31, 2006: Share capital Additional paid-in capital Retained earnings Total ---------------------------- U.S. $ in thousands ---------------------------- Balance at January 1, 2006 2 7,561 374 7,937 Changes in the yearended December 31, 2006: Dividend distributed - - (2,000) (2,000) Issuance of share capital** * 79 - 79 Share capital as a result of split 80 (80) - - Additional capitalraised in Aim listing*** 33 8,797 - 8,830 Net profit - - 3,623 3,623 Balance at December 31, 2006 115 16,357 1,997 18,469 * Less than 1 thousands dollar.** Exercise of options of employees to shares, grant of options to directors and investors.*** Net of issuance expenses in the amount of $1,631 thousand. STATEMENTS OF CASH FLOWS For the six months ended June 30 Year ended December 31 2007 2006 2006 ---------------------- U.S. $ in thousands ---------------------- Cash Flows fromOperating Activities:Net profit 1,885 1,392 3,623 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation andamortization 151 138 281Gain from short-terminvestments (173) (149) (340)Deferred taxes (32) (8) (13)Issuance of share capital - 79 79 Changes in operating assets and liabilities: (Increase) in inventories (310) (279) (716)(Increase) in trade receivables (526) (763) (1,749)Decrease in other accountsreceivables for short and long term 9 82 43Increase(decrease) intrade payables (130) 563 789Increase in other accounts payables 165 284 446Severance pay, net 46 34 57 Net cash provided by(used in) operatingactivities 1,085 1,373 2,500 STATEMENTS OF CASH FLOWS For the six months ended June 30 Year ended December 31 2007 2006 2006 ---------------------- U.S. $ in thousands ---------------------- Cash Flows FromInvesting Activities: Sale (purchase) of short-term investment (770) (10,529) (10,793)Purchase of property and equipment (299) (115) (263) Net cash (usedin) provided byinvesting activities (1,069) (10,644) (11,056) Cash Flows FromFinancing Activities: Dividend distributed (898) (2,000) (2,000)Additional capital raisedin Aim Listing, net - 8,830 8,830Repayment of long-term loans (44) (44) (87) Net cash used in financing activities (942) 6,786 6,743 INCREASE (DECREASE) INCASH AND CASH EQUIVALENTS (926) (2,485) (1,813) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,167 3,980 3,980 CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,241 1,495 2,167 Appendix A - Non-cash activities: For the six months ended June 30 Year ended December 31 2007 2006 2006 --------------------- U.S. $ in thousands --------------------- Purchase of property andequipment against tradepayables 24 52 66 NOTES TO THE FINANCIAL STATEMENTS Note 1 - General: MTI wireless Edge Ltd. (hereafter - the Company) is an Israeli corporation. Itwas incorporated on December 30, 1998 as a wholly - owned subsidiary of M.T.I.Computers & Software Services (1982) Ltd. (hereafter - the Parent Company) andcommenced operations on July 1, 2000 and since March 2006, the Company's shareshave been traded on the AIM Stock Exchange The Company is engaged in the development, design, manufacture and marketing ofantennas. Note 2 - Significant Accounting Policies: The significant accounting policies applied in the annual financial statementsof the Company as of December 31, 2006 are applied consistently in these interimconsolidated financial statements.The company prepares its financial statements in accordance with theinternational reporting standards. This information is provided by RNS The company news service from the London Stock Exchange