Mti Wireless Regulatory News (MWE)

4 November 2013

MTI Wireless Edge Ltd

("MTI" or the "Company")

Financial results for the nine months ended 30 September 2013

MTI Wireless Edge Ltd., (ticker: MWE) ("MTI" or the "Company"), a market leader in the manufacture of flat panel antennas for fixed wireless broadband, today announces its unaudited results for the nine months ended 30 September 2013.

Highlights

· 5% revenue growth YoY to $10.0m (Q1 - Q3 2012: $9.5m)

· Gross margin improved by two points to 37%

· Strong performance in military segment (9 month revenue exceeded full 2012 revenue)

· Both operational and net profit (both were losses last year)

· EBITDA of $541K in 9 months ($61K in 9 months of 2012 )

· Balance sheet remains strong (after payment of dividend 0.36p per share in April 2013) with $6.6m in cash, cash equivalents and other current financial assets (30 September 2012: $7.0m) and net office value of $3.4m (30 September 2012: $3.15m) - total equal to 12.3p per share (30 September 2012: 12.3p per share).

· New customers gained in the 80 GHz sector

Dov Feiner, Chief Executive Officer, commented:

"I am pleased to announce that the Company has made both an operational and a net profit in the first 9 months of this year. Our gross margins improved to 37% due mainly to a strong performance in the military sector.

As we anticipated, the 80 GHz sector continued to develop and this year we have added a number of new customers to our growing list which we believe will contribute to our future revenues and profits. This area will continue to expand as the demand for broadband escalates.

With a 5% year-on-year revenue growth, a strong backlog of orders and a healthy list of new customers the board believes that MTI will continue to grow."

Contacts

About MTI Wireless Edge

MTI is engaged in the development, production and marketing of High Quality, Low Cost, Flat Panel Antennas for Commercial & for Military applications. Commercial applications such as: WiMAX, Wireless Networking , RFID readers &, Broadband Wireless Access. With over 40 years experience, 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 includes 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.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the nine months period ended September 30, 2013:

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the nine months period ended September 30, 2012:

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the year ended December 31, 2012:

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

The accompanying notes form an integral part of the financial statements.

 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

Appendix A - Non-cash activities:

The accompanying notes form an integral part of the financial statements.

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General:

A. Corporate information:

M.T.I Wireless Edge Ltd. (hereafter - the Company) is an Israeli corporation. It 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) and commenced operations on July 1, 2000 and since March 2006, the Company's shares have been traded on the AIM 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.

B. Assets and Liabilities in foreign currencies

Henceforth are the details of the foreign currencies of the main currencies and the changes percentage in the reporting period:

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 a 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, 2012 was approved by the board on February 19, 2013. The report of the auditors on those financial statements was unqualified. The interim consolidated financial statements as of September 30, 2013 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of 31 December, 2012 and for the year ended on that date and with the notes thereto,

The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2012 are applied consistently in these interim consolidated financial statements.

Note 2 - Significant Accounting Policies (CONT.): 

Adoption of New Standards, Amendments and Interpretations Effective for the first time from January 1, 2013:

- IAS 19 (as revised in 2011) Employee Benefits:

The revised IAS 19 includes a number of changes to the recognition and measurement of defined benefit plans and termination benefit and to the disclosures for all employee benefits within IAS 19. Set forth below is a summary of the key changes:

- "Actuarial gains and losses" are renamed "re-measurements" and recognized immediately in OCI.

- Past-service costs recognized immediately in the period of a plan amendment including unvested benefits.

- Annual expenses for a funded benefit plan include net interest expense or income, calculated by applying the discount rate to the net defined benefit asset or liability.

- The distinction between short-term and long-term benefits for measurement purposes is be based on when payment is expected in full, not when payment can be demanded.

- A clarification that any benefit that has a future-service obligation is not a termination benefit. A liability for a termination benefit is recognized when the entity can no longer withdraw the offer of the termination benefit or recognizes any related restructuring costs.

The amendment is effective for periods beginning on or after 1 January 2013. Earlier application is permitted.

The amendment has been applied retrospectively commencing from the financial statements for periods beginning on January 1, 2013 (see note 3).

- Amendment to IAS 1 Presentation of Financial Statements

The amendments to IAS 1 revised the presentation of other comprehensive income (OCI). Separate subtotals are required for items which may subsequently be recycled through profit or loss and items that will not be recycled through profit or loss. The Group has updated the presentation of OCI on the face of the Statement of Comprehensive Income.

The following new standards and amendments apply for the first time in 2013. However, they do not impact the annual consolidated financial statements of the Group or the interim condensed consolidated financial statements of the Group.

- IFRS 10 Consolidated Financial Statements

- IFRS 12 - Disclosure of Interests in Other Entities

- IFRS 13 Fair Value Measurement

- IFRS 7 Financial Instruments: Disclosures: Amendments - Offsetting Financial Assets and Financial Liabilities

- Annual Improvements to IFRSs (2009 - 2011 Cycle)

Note 3 - Adoption of New Amendments:

Following the Adoption of the IAS 19 (as revised in 2011) Employee Benefits as described above (note 2), here is the effects of the change on the financial statements:

Note 4 - SEGMENTS:

The following table's present revenue and profit information regarding the Group's operating segments for the nine months ended September 30, 2013 and 2012, respectively and for the year ended December 31, 2012.

Note 4 - SEGMENTS (CONT.):

Note 5 -TRANSACTIONS WITH RELATED PARTIES:

The Parent Company and other related parties provide certain services to the Group as follows:

Compensation of key management personnel of the Group: