1st Quarter Results

RNS Number : 6624E
MTI Wireless Edge Limited
10 May 2017
 

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".



 

For further information please contact:

MTI Wireless Edge Ltd

Dov Feiner, CEO

Moni Borovitz, Financial Director

 

http://www.mtiwe.com/

+972 3 900 8900

Nomad and Joint Broker

Allenby Capital Limited

Nick Naylor

Alex Brearley

 

+44 20 3328 5656

 

Joint Broker
Peterhouse Corporate Finance Limited

Lucy Williams

Eran Zucker

 

+44 20 7469 0930

 

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

 


Three months ended

 March 31,


Year ended December 31,


2017


2016


2016


U.S. $ in thousands


Unaudited


Audited







Revenues

6,211


5,253


23,276

Cost of sales

3,754


3,472


14,728







Gross profit

2,457


1,781


8,548

Research and development expenses

249


322


1,079

Distribution expenses

948


918


3,346

General and administrative expenses

814


630


2,640







Profit (loss) from operations

446


(89)


1,483

Finance expense

220


148


334

Finance income

7


21


57







Profit (loss) before income tax

233


(216)


1,206

Income tax expense

13


(60)


222







Profit (loss)

246


(156)


984

Other comprehensive income (loss) net of tax:






Items that will not be reclassified to profit or loss:






Re-measurement of defined benefit plans

-


-


(16)


-


-


(16)

Items that may be reclassified to profit or loss:






Adjustment arising from translation of financial statements of foreign operations

242


261


121


242


261


121

Total other comprehensive income

242


261


105







Total comprehensive income

488


105


1,089







Profit (loss) Attributable to:






Owners of the parent

224


(501)


936

Non-controlling interest

22


(6)


48








246


(156)


984

Total comprehensive income (loss) Attributable to:






Owners of the parent

466


111


1,041

Non-controlling interest

22


(6)


48








488


105


1,089







Earnings (losses) per share (dollars)






Basic

0.0043


(0.0029)


0.0181

Diluted

0.0042


(0.0029)


0.0178







Weighted average number of shares outstanding






Basic

51,837,468


51,580,836


51,687,853

Diluted

52,679,854


52,664,393


52,575,593







 

 


INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31, 2017:


Attributed to owners of the parent




Share capital

Additional paid-in capital

Capital Reserve

for share-based

payment

transactions

Adjustment arising from translation of financial statements of foreign operations

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity


U.S. $ in thousands










Balance at January 1, 2017 (Audited)

109

14,964

323

44

3,468

18,908

324

19,232






 

 


 

Comprehensive income






 


 

Profit for the period

-

-

-

-

224

224

22

246

Other comprehensive income




 




 

Translation differences

-

-

-

242

-

242

-

242







 


 

Total comprehensive income for the period

-

-

-

242

224

466

22

488

Exercise of options to share capital

*

7

(*)

-

-

7

-

7

Share based payment

-

-

7

-

-

7

-

7

 

 

 

 

 

 

 

 

 

Balance at March 31, 2017 (Unaudited)

109

14,971

330

286

3,692

19,388

346

19,734

 

 

 

 

 

 

 

 

 

(*) less than 1 thousand dollar

 

 

 

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the three months period ended March 31, 2016:


Attributed to owners of the parent




Share capital

Additional paid-in capital

Capital Reserve

for share-based

payment

transactions

Adjustment arising from translation of financial statements of foreign operations

Retained earnings

Total attributable to owners of the parent

Non-controlling interest

Total equity


U.S. $ in thousands










Balance at January 1, 2016 (Audited)

109

14,945

304

(77)

3,116

18,397

266

18,663






 

 


 

Comprehensive income






 


 

Loss for the period

-

-

-

-

(150)

(150)

(6)

(156)

Other comprehensive income




 




 

Translation differences

-

-

-

261

-

261

-

261







 


 

Total comprehensive income for the period

-

-

-

261

(150)

111

(6)

105

Share issuance to non-controlling interests in subsidiary

-

(10)

-

-

-

(10)

10

-

Exercise of options to share capital

-

6

(1)

-

-

5

-

5

Share based payment

-

-

2

-

-

2

-

2

 

 

 

 

 

 

 

 

 

Balance at March 31, 2016 (Unaudited)

109

14,941

305

184

2,966

18,505

270

18,775

 

 

 

 

 

 

 

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the year ended December 31, 2016    :


Attributable to owners of the parent



Share capital

Additional paid-in capital

Capital Reserve from share-based payment transactions

Adjustment arising from translation of financial statements of foreign operations

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

Audited










Balance as at January 1, 2016

109

14,945

304

(77)

3,116

18,397

266

18,663

Changes during 2016:









Comprehensive income









Profit for the year

-

-

-

-

936

936

48

984

Other comprehensive income









Re measurements on defined benefit plans

-

-

-

-

(16)

(16)

-

(16)

Translation differences

-

-

-

121

-

121

-

121










Total comprehensive income for the year

-

-

-

121

920

1,041

48

1,089

Share issuance to non-controlling interest in subsidiary

-

(10)

-

-

-

(10)

10

-

Exercise of options to share capital

*

29

(1)

-

-

28

-

28

Dividend paid

-

-

-

-

(568)

(568)

-

(568)

Share based payment

-

-

20

-

-

20

-

20










Balance as at December 31, 2016

109

14,964

323

44

3,468

18,908

324

19,232










(*) less than 1 thousand dollar

 

 

 


INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

 


31.03.2017


31.03.2016


31.12.2016


U.S. $ in thousands


Unaudited


Audited

ASSETS






CURRENT ASSETS:






Cash and cash equivalents

4,926


3,144


4,428

Other current financial assets

-


2,109


-

Trade receivables

9,122


7,751


 8,159 

Other receivables

630


879


706

Current tax receivables

540


183


455

Inventories

4,151

3,950


4,910 








19,369

18,016


18,658













NON-CURRENT ASSETS:






Long term prepaid expenses

39


36


48

Property, plant and equipment

5,340


5,578


5,453

Investment property

625


646


630

Deferred tax assets

597


502


500

Intangible assets

294


402


321

Goodwill

573

573


573








7,468

7,737


7,525








 

 


 







Total assets

26,837

25,753


26,183







 

 

 


INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION


31.03.2017


31.03.2016


31.12.2016


U.S. $ In thousands


Unaudited


Audited

LIABILITIES AND EQUITY






CURRENT LIABILITIES:






Current maturities and short term bank credit and loans

994


812


802

Trade payables

2,036


1,648


2,285

Other accounts payables

2,071


1,620


1,792

Current tax payables

56


194


3








5,157


4,274


4,882







NON- CURRENT LIABILITIES:






Loans from banks, net of current maturities

1,505


2,209


1,664

Employee benefits

441


403


405

Other liabilities

-


92


-








1,946


2,704


2,069







Total liabilities

7,103


6,978


6,951







EQUITY






Equity attributable to owners of the parent






Share capital

109


109


109

Additional paid-in capital

14,971


14,941


14,964 

Capital reserve from share-based payment transactions

330


305


323

Translation differences

286


184


44

Retained earnings

3,692


2,966


3,468








19,388


18,505


18,908







Non-controlling interest

346


270


324







Total equity

19,734


18,775


19,232


 


 


 







Total equity and liabilities

26,837


25,753


26,183







 

 

May 9, 2017

 

 

 

Date of approval of financial statements

Moshe Borovitz

Finance Director

Dov Feiner

Chief Executive Officer

Zvi Borovitz

Non-executive Chairman

 

 

 



 

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 


Three months ended

 March 31,


Year ended December 31,

 



2017


2016


2016



U.S. $ in thousands

 



Unaudited


Audited

Cash Flows from Operating Activities:







 

Profit (loss) for the period


246


(156)


984

 

Adjustments for:







 

Depreciation and amortization


164


162


 635 

 

Loss (gain) from investments in financial assets


77


39


(57)

 

Equity settled share-based payment expense


7


2


 20 

 

Finance expenses, net


28


32


 122 

 

Income tax expense (benefit)


(13)


(60)


222

 

Changes in operating assets and  liabilities:







 

Decrease (increase) in inventories


870


481


(466)

 

Decrease (increase) in trade receivables


(839)


579


19

 

Decrease in other accounts receivables and prepaid expenses


121


410


572

 

Increase (decrease) in trade and other accounts payables


(51)


(620)


105

 

Increase in employee benefits, net


35


16


2

 

Interest paid


(28)


(32)


(122)

 

Income tax paid


(114)


(92)


(837)

 








 

Net cash provided by operating activities


503


761


1,199

 








 








 

 

 

 



 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 



Three months ended

 March 31,


Year ended December 31,



2017


2016


2016



U.S. $ in thousands



Unaudited


Audited

Cash Flows From Investing Activities:







Sale of investments in financial assets, net


-


-


2,142

Purchase of property, plant and equipment


(8)


(46)


(314)








Net cash provided by (used in) investing activities


(8)


(46)


1,828















Cash Flows From Financing Activities:







Exercise of share options


7


5


28

Dividend paid to the owners of the parent


-


-


(568)

Short term loan received from banks


166


-


-

Long term loan received from banks


-


-


87

Repayment of long-term loan from banks


(210)


(214)


(793)








Net cash used in financing activities


(37)


(209)


(1,246)















Increase in cash and

cash equivalents during the period 


458


506


1,781

Cash and cash equivalents

 at the beginning of the period


4,428


2,634


2,634

Exchange differences on balances of cash and  

     cash equivalents


40


4


13








Cash and cash equivalents

 at the end of the period


4,926


3,144


4,428








 

Appendix A - Non-cash transactions:



Three months ended

 March 31,


Year ended December 31,

 



2017


2016


2016

 



U.S. $ in thousands

 



Unaudited


Audited







 

Purchase of property, plant and equipment

  against trade payables


6


22


5

 








 

 

 

 

 


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.

 

Three months ended March 31, 2017 (Unaudited)









Antennas


Water Solutions


 

Total



U.S. $ in thousands

Revenue







External


3,129


3,082


6,211








Total


3,129


3,082


6,211















Segment income


166


280


446















Finance expense, net






(213)








Profit before income tax






233








Other







Depreciation and amortization


147


17


164








 

 

Three months ended March 31, 2016 (Unaudited)









Antennas


Water Solutions


 

Total



U.S. $ in thousands

Revenue







External


2,321


2,932


5,253








Total


2,321


2,932


5,253















Segment income (loss)


(400)


311


(89)















Finance expense, net






(127)








Loss before income tax






(216)








Other







Depreciation and other non-cash expenses


150


12


162








 

 

Year ended December 31, 2016 (audited)





Antennas


Water Solutions


Total



U.S. $ in thousands

Revenue







External


11,427


11,849


23,276








Total


11,427

11,849

23,276















Segment profit (loss)


(108)


1,591


1,483








Unallocated corporate expenses





















Finance expense, net






(277)








Profit before income tax






1,206








Other







Depreciation and amortization


591


44


635








 

 

Note 4-TRANSACTIONS AND BALANCES WITH RELATED PARTIES:

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



Three months ended

 March 31,


Year ended December 31,

 



2017


2016


2016



U.S. $ in thousands



Unaudited


Audited

Purchased Goods


60


34


369

Management Fee


116


94


428

Services Fee


65


62


249

Lease income


(18)


(18)


(72)

 

Compensation of key management personnel of the Group:



Three months ended

 March 31,


Year ended December 31,

 



2017


2016


2016



U.S. $ in thousands



Unaudited


Audited

Short-term employee benefits *)


201


178


810








 

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

All Transactions are made at market value.

 

Balances with related parties:


As at


31.03.2017


31.03.2016


31.12.2016


U.S. $ in thousands


Unaudited


Audited

Other receivables (Other accounts payables)

(243)


108


(207)







 

 

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. 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
QRFBRGDUXBGBGRC
UK 100

Latest directors dealings