18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

This company are really dissapointing me, alot of promise lets hope the seller's got it wrong.

PP suggest you update the heading.

Growing pains more like!!

SP slipping away now lower than issue price in 2005. Draw your own conclusions.

Papalpower, LEAD has no hope now. Really disappointing...closed at 31p.

Here's why, Made a loss for year!! Expects next year to be better!! heard it all before, these things come in 3's right? Lets hope I'm wrong.

Leadcom Announces Lower Margins for Q4 and Full Year 2007 and Announces a US$35 Million Follow Up Award in India


February 5, 2007, Hod Hasharon, Israel - Leadcom Integrated Solutions Ltd. ('Leadcom' or 'the Company', AIM: LEAD), a leading international provider of innovative telecommunication solutions informs that, subject to the final audited results, the Company expects to report normalized operating margin (from continuing operations) significantly below market expectations for Q4 and full year of 2007.

Lower Margins for Q4 and Full Year 2007
The Company expects to report revenues of approximately US$200 million excluding the discontinued operation in CALA (approximately US$225 million including it), normalized operating profit margin (from continuing operations) in the range of 6% to 6.5% and net profit (from continuing operations) of US$3-4 million in 2007. Management has decided to employ conservative approach towards the collection of payment for work done in the CALA discontinued operations. Therefore, we have provided for approximately US$9 million for the loss from discontinued operations. As a result, we expect to report a net total loss of US$5 to 6 million for the entire Company in 2007.

The reasons for these results were: the discontinuation of engagements with a leading vendor in CALA, as discussed in the Q3 2007 results, has resulted in a higher loss than initially anticipated; engagements with other customers in CALA generated lower margins than expected; the inclusion of Ytelcom financial results in Leadcom's accounts for the first time and the implementation of IFRS accounting rules at Ytelcom required adoption of revenue recognition policies which led to postponing both certain revenues and profit into the first half of 2008; and an over-run of costs in one of the Leadcom's projects in Africa.

Full financial and operating results for Q4 and full year 2007 will be published on February 25, 2007.


Largest Ever Single Award

Leadcom also announces today that it received a follow-up award from an existing customer of the Company, a leading cellular operator in India.

This project is on Full Turnkey basis, for the delivery of products and services pertaining to construction of telecom sites in a circle in which Leadcom has already rendered services to this customer, as well as in two new circles.

The value of this award, the largest ever received by the Company, is expected to exceed US$35 million. The majority of the revenues from this award are anticipated to be recognized in the first half of 2008. This will set the order book in India for 2008 to above US$50 million.

Arik Alcalay, Leadcom's CEO, commented: "We are disappointed with our overall performance in 2007. We failed to translate the considerable growth in revenues into the target net margins and profitability. We are determined to take all necessary actions to restore our performance and profitability and regain the confidence of our shareholders."

PP you seem to have some awful luck!

Anyone prepared to hold for the next 5 years and hopefully get their money back???

Kivver, I was fully expecting this, hence my comment this morning about "very bad results".

I did call for a total kitchen sink job in 2007, and hopefully its what we will get now.

This will clear out all the old Lead insti holders, and allow the new holders to buy more ahead of what should be now a much improved 2008 (especially as 2007 is now a kitchen sinkie).

It would be nice to see a test of 20p, and around there thats where I will buy back a big position, if the chance comes.

I'd rather see 40p in the near future!!

Steveo and me, but I fear it will be a long longer than that. Investors lose confidence in companies like this who seem to be very ecomical with the truth.

Management looks dodgy...not worth 20p...putting good money after bad

Margins appear to have collapsed in Q4, even in the 'good' parts of the business. If anything that will only get worse from competition from now on.

City will lose confidence with management too after this Loss warning which makes their last conference call look a nonsense imho.

Could easily post a loss again in 2008. Bad management in a bad market. No earthly reason to take the punt on a recovery imho.

Pretty much as suspected with the earlier Elco buys, we now see Elco uping the ante. This resolves any cash issues.

Elco were buying earlier at over 60p levels, and so they see the value, and given their input and back up, things should get very nice, once we get the "kitchen sink" 2007 results out of the way later this month.

have not been following LEAD for a while and am sorry, especially for PP, that sp has fallen over yet another cliff ..... surely the stock is best avoided, though i admit that is without reading the background.

cynic, the news today tends to suggest that they are getting not only financial support but also business support.

The SP has fallen off a cliff, and indeed the results to come later this month should be awful, but, provided this is, and it looks like, a real kitchen sinker, then with Elco support, and any cash problems removed, that the business could resume its growth again, thats profits and not revenue this time around.

I have been buying, and now have a holding sub 30p levels.

Upside sp 40p which is Elco's option price, downside wait for the results, no hurry to buy, imho. If profits are achieved Elco Group may end up with effective control.

I think Elco would like to see the SP around 50p to 60p before they take their option for more shares at 40p.

Elco were buying this at 60p levels before, and so you'd expect them to keep buying now back to that level.

http://www.investegate.co.uk/article.aspx?id=20080225073900Z4154&fe=1


Financial Highlights

-- Revenues up 87.1% to US$201.8 million (2006: US$107.9 million)

-- Positive cash flow generated from operating activities of US$3 million
(2006: negative cash flow used of US$13.9 million). Cash flow generated
from continuing operations - US$10.1 million

-- Normalized gross profit up 51.3% to US$47.7 million (2006: US$31.5
million)

-- Normalized gross profit margin decreased to 23.6% (2006: 29.2%)

-- Normalized operating profit up 8.5% to US$12.5 million (2006: US$11.5
million)

-- Normalized net profit from continued operations down 15.2% to US$6.7
million (2006: US$7.9 million)

-- Cash and financial instruments as of December 31, 2007, were US$37.3
million

-- Effective tax rate reduced to 28.5% (2006: 30.9%)

-- Net loss for 2007 of US$6.1 million (2006: profit US$8.7 million)

-- Shareholders' equity of US$37.2 million

Business Highlights

-- Continued strong organic growth in revenues

-- Acquisition of the YTelcom group, announced June 28, 2007, a strong
strategic fit to the existing business, markedly widens Leadcom's reach
in Africa

-- Strengthened presence and continued momentum in various existing
territories

-- Significant, profitable growth in the Indian operation

-- Discontinued operations with a leading vendor in CALA, as a response to
unacceptable profit margins, leading to one-off costs recorded in 2007

-- Operational challenges in other countries resulted in decreased margins
in 2007

-- Strong order book and management restorative action provides visibility
and confidence in performance for 2008

The full audited accounts are expected to be published in approximately one
week.

Arik Alcalay, Chief Executive Officer, commented:

'We are obviously very disappointed with our performance in 2007. Although this
is Leadcom's fifth consecutive year presenting over 40% growth in revenues, we
failed to translate this growth into the expected profitability growth, as our
margins were significantly reduced in certain regions. Despite these problems,
operating cash flow generation was positive.

Actions are already under way to restore profit margins, reflecting management's belief that Leadcom's priority should be focused on profitability, followed by growth in revenues.

Looking at our targets for 2008, we will enter the year scaled for a lower level of operations in CALA but expect continued momentum in most of Leadcom's other territories, accompanied by rigorous cost control measures, and an absolute focus on restoring profit margins.'

Huawei first, and Ericsson second, with Nokia nowhere mentioned in the leaders, perhaps some reason why the CALA region was given up, and relations with Nokia cooled, understandable if Nokia are the mobile phone leaders (yes) but not near the top ones for network installations.

http://www.marketwatch.com/news/story/2007-mobile-base-station-contracts/story.aspx?guid=BEA01C0C-368B-4DFE-AA13-4349E2F3E75A


2007 Mobile Base Station Contracts Dip as Huawei Captures Top Position

Momentum Shifts Back Towards Europe Due to 3G Upgrades

Last update: 9:01 a.m. EST Jan. 10, 2008Print E-mail RSS Disable Live Quotes

REDWOOD CITY, CA, Jan 10, 2008 (MARKET WIRE via COMTEX) -- EJL Wireless Research announces the second edition of its annual base station contract analysis results for 2007. Total contracts in 2007 reached 205, down slightly from 2006 levels of 217 contracts.

The base station contract analysis reports are issued on a quarterly and annual basis and provide a unique perspective on the global cellular/PCS base station contract awards and demand for mobile base station equipment covering all major OEMs including Alcatel-Lucent, Ericsson, Huawei Technologies, Motorola, Nokia Siemens Networks, LG Nortel Co. Ltd., and ZTE. The reports cover all 2G and 3G technologies including HSPA.

"Huawei Technologies was the market leader with 29% of total contract awards during the December 31, 2007 ended period. Within the critical WCDMA/HSPA category, the company dominated with 50% of overall contracts and had a nearly 2:1 advantage over Ericsson which was second with 26%," says founder and President, Earl Lum. Alcatel-Lucent finished second overall for the year at 23%, followed by Ericsson and 2006 contract leader Nokia Siemens Networks.
"3G technologies represented 62% of overall contracts in 2007, flat from a year ago. While demand remained heavily focused on the Asia Pacific region with China, India and Pakistan spending billions, Europe as a combined region was the largest in 2007 with 36% of total contract volume," says Lum.

Nice 31p per share offer, not many companies where you see placings at "above market price".

They must be confident going forward....... ? ;)



Leadcom Announces Receiving a Non-Binding Offer for Investment from Old Lane (UK) LLP

Leadcom Integrated Solutions LtdMarch 12, 2008, Hod Hasharon, Israel - Leadcom Integrated Solutions Ltd.('Leadcom' or 'the Company', AIM: LEAD), a leading international provider of innovative telecommunication solutions, announces that it has received a non-binding offer (the "Offer") from Old Lane (UK) LLP ("Old Lane"), for an investment by Old Lane in the Company. Old Lane currently holds 5,000,000 shares in the Company, representing 4.15% of the Company's issued share capital.

The Offer follows a preliminary approach to the Company that was announced on
February 25, 2008.

The Offer provides that Old Lane would subscribe for between 16.4 million and
24.6 million shares at 0.31 per share (or 0.34p if the Company records a net
profit of over US$10 million for the financial year ending December 31st, 2008), raising a total of US$10-15 million. The injection of funds into Leadcom will improve the Company's balance sheet and should enable significant additional opportunities in the Indian market to be funded. If the transaction is completed, following the issue of shares the holding of Old Lane would be
between 14.42% and 18.90% of the Company's issued share capital, on a fully
diluted basis. The shares issued would be subject to a 6-month lock up period.
Under the terms of the Offer, Old Lane would also be entitled to appoint two
Directors to the Company's board.

In addition, the Company would grant to Old Lane, at no additional cost, an
option for 30 months at 0.40 per share to purchase such number of shares that
will equal two-thirds of the number of shares that are actually subscribed for
by Old Lane in the first phase.

The transaction is subject (amongst other matters) to due diligence, the
duration of which is projected to be 45 days and is to commence immediately, and the execution of a definitive agreement, as well as the approval by the
Company's board of directors and shareholders.

Due diligence with Electra Ltd., announced February 21, 2008 is proceeding as
scheduled.