The main points at the Year end results were:
* Strong cash position: $55.2 m and no borrowings (2001: $56.6m)
* Significant R&D program maintained
* General and administrative overheads reduced by 37% - in line with strategy
* Awarded an exclusive contract with a leading regional Bell operating company in H2
* Won first major contract for VOIP platform in the US

The company is increasing its presence in several markets which have substantial potential, including the Far East and despite the recent decline in revenues, they are now serving more customers in more countries than ever before.

Dr Zvi Marom, Chief Executive has ensured the company is debt free and cash rich. He has kept a tight control on expenditure and been very smart as to whom he chose to do business with.

The high speed Internet business just taking off and systems have to be upgraded to take up high data load and telcos simply need equipment’s made by makers like BATM.

With time, Financial Institutions will seek out companies which represent good value and strong potential in terms of their growth and BATM is one such company.

BATM shares are trading at cash position 8.50p but at half their NAV of 17p, with all this good points, and the trend on the chart is definitely on the up since the start of April, time to get on board. Dates -- News
09 Dec 08 Signed a contract of medical equipment in excess $1m with substantial upside in the future
07 Jan 09 Revenues will exceed $132m for the full Year 2008, results early March
17 Mar 09 Year results Pretax rise 20% sales 39% and dividend to 0.69p
1 April 09 Vigilant Technology Expands Operations to US & Singapore
12 May 09 Update - cautiously optimistic it will meet targets
14 May 09 CEO Zvi Marom, buys 200,000 shares @ 31.375p
Newspaper comments
18 Dec 2008 Share Magazine selects BVC for the Growth Portfolio
18 Dec 2008 Share Magazine selects BVC for the Growth Portfolio
05 Feb 2009 investegate/article Investech shareholding
18 Mar 2009 CEO video after results - post 19569
18 Mar 2009 Investors Chronicle says "BUY" after 2009 results -

Intraday

4 month candkestick with Indicators ad support /resistance

6 month Bollinger Bands,RSI, S Stochastic and 50 days MA

Charts - 5 days

Links    batm web    Vigilant Web    PLUS Market Trades

           

Some late buying and bounce from intraday lows yesterday

The bounce is continuing this morning

Sterling continues fall

Sterling fell below its 12 month low against the dollar in early morning trading as concerns about the economy and the measures being taken to tackle the deficit re-emerged.

By 9.00am, the pound was trading at $1.4398 - more than 1% down and the lowest level against the dollar since March 2009.

The Euro was also being dumped on the foreign exchange market with the currency hitting a 4 year low against the dollar. Against the dollar the Euro was trading at $1.2237.

The Dollar against the Pound
-------------Intraday chart ------------------------1 year chart

Tomorrow 18 May 10 Interim Management Statement
It was delayed one week from earlier 11th May

Biggest faller today.

Interim Management Statement

BATM Advanced Communications Limited ("BATM" or the "Company") (LSE: BVC),
a leading designer and producer of Carrier Ethernet and Metropolitan Telecom
Systems, is today issuing its Interim Management Statement for the period from 1
January 2010 to 30 April 2010.

Current trading update
Total revenues in the first four months of 2010 were $ 36.0 million, compared
with $38.9 million in the equivalent period in 2009. The decrease is due to a
significant decline of revenues during the period from a major OEM channel in
the Telecom division, as compared to those in the equivalent period in 2009.
This has been somewhat offset by growth in other areas.
During these four months the sales mix was 63% from the Telecoms division and
37% from the Medical division. During April 2010, total revenues for the month
were equal to those in April 2009, despite continuing weakness in the
aforementioned OEM customer and substantial weakness in European economies.
The gross margin has decreased by 7% during the first four months of 2010 when
compared to the same period in 2009, due to the change in the sales mix, caused
by the reduced revenues from the major OEM customer. The gross margin in the
Medical division has increased above the margin in 2009, a trend which we expect
to continue.
Financial position

The Company's balance sheet remains very strong and at the end of April the
effective cash balance stood at $64.5 million, a decrease of $2.3 million
compared to the position at 31 December 2009, largely due to erosion of Euro
denominated balances.
Board Developments
As reported in the Annual Report for 2009 both Ms Ariella Zochovitsky and Mr
Koti Gavish will complete the second of their three year terms, the maximum term
prescribed by Israeli law, in September 2010. In addition Dr. Dan Kaznelson has
announced his decision to step down immediately prior to the forthcoming Annual
General Meeting.
At the AGM the Board will be proposing the appointment of three new
non-executives:
- Roger Lacey, Senior Vice President, Strategy and Planning, 3M with 11 years
experience in the 3M Telecoms division;
- Professor Gideon Chitayat, currently Chairman of Delta Galil Industries and
Honigman. Professor Chitayat has served as a director for Teva Pharmaceutical
Industries and Bank Hapoalim among others; and
- Amos Shani, serial entrepreneur with experience in the Telecoms sector,
former Division Engineering Manager for Intel, Israel.
Full resumes of the proposed new appointees will be made available ahead of the
Annual General Meeting. The Board believes that these strong candidates will
make an important contribution to the continued success of BATM.

Outlook

Despite the disappointing start to the year, due almost
exclusively to the low orders from our major OEM customer, from April onwards we
have begun to see positive signs in our business. High customer activity in the
US reported earlier in the year has started to convert into orders and we have
signed two licensing agreements with new customers, including an agreement
reported in April 2010 with a leading semi-conductor manufacturer, to license
some of our mobile backhaul technology. Revenues from the licensing will begin
in mid 2011 and are initially expected to be in the region of several US$
million. Management also sees positive prospects with important new customers.
Due to the substantial impact of the OEM customer decline coupled with the
weakness of the Euro, we currently expect to be broadly break-even for the first
six months. For the year as a whole, management are encouraged by the recent
positive signs in the business, and remain cautiously optimistic that BATM will
meet its revenue targets for the full year. The sales mix to date is expected to
continue and management expects that the profitability in the second half of the
year will be similar to that of the second half of 2009.

What to come ........

Revenue DOWN
Profit DOWN
Margins DOWN
Cash is DOWN

Excuses ....YES, just like the delayed of the statement by one week ( reason they gave was Management was expecting to come to London last Tuesday, but then they change their mind, so reported today )


Due to the substantial impact of the OEM customer decline coupled with the
weakness of the Euro, we currently expect to be broadly break-even for the first six months.

Margins DOWN, and keep going DOWN

Is well known that the Telecom business was loosing ground ( contracts ) and filling the revenues with the new adquisitions ... Medical division - were the margins are small on in some cases none existant - Vigilant -


During these four months the sales mix was 63% from the Telecoms division and
37% from the Medical division

2nd profit warning and Doctor buys more...........

18 May 2010 -- BATM Advanced Communications Limited ("BATM" or the "Company")

The Company has been informed that, Dr. Zvi Marom, Chief Executive Officer of
BATM, has today bought 450,000 ordinary shares in the Company at an average
price of 22.917 pence per share.

Following this purchase, Dr. Marom has a beneficial holding of 92,044,500
ordinary shares representing approximately 22.88 per cent of the Company's
ordinary issued share capital. Dr. Marom does not hold any options over the
Company's ordinary shares.

Today's papers

From the Guardian market report......

Finally BATM Advanced Communications lost 12.5p to 24.5p after the Israeli telecoms equipment company reported a fall in first quarter revenues from $38.9m to $36m and a 7% drop in gross margin, mainly due to a decline in orders from its major customer. After the update, Altium Securities cut its recommendation from hold to sell with a 25p target price. Singer Capital Markets said:

Confidence had already been fragile given downgrades in February and today's setback highlights the risks in the group's business model. There has been progress elsewhere in the business, but that is likely to be small comfort to investors for now. Its significant net cash pile of around 40m should provide valuation support.

From the FT.com .........

Market report
SMALL CAPS Revenue fall knocks BATM

BATM Advanced Communications was one of the worst small-cap performers yesterday after the network equipment maker reported a fall in revenue and margins for the first quarter of 2010.

Citing slack demand from a key telecoms customer and weakness of the euro, BATM said it would only break even in the first half of the year, although it remained optimistic of hitting full-year revenue targets.

Analysts were not convinced and responded by slashing forecasts and downgrading recommendations. Altium Securities, for example, cut its rating to sell, while KBC Peel Hunt moved to hold. This is a continuation of the weakness we began to see in the fourth quarter, said KBC. This runs contrary to guidance that Telco revenues would recover this year.

BATM fell 33.8 per cent to 24p on heavy volume of nearly 50m shares.

Further comments on today's papers.....

The mail
MARKET REPORT: 'Batman' shares take a beatingBy Geoff Foster

Ten years ago during the manic dot-com boom, shares of Israeli telecoms and medical laboratory equipment maker BATM Advanced Communications, then affectionately known as Batman, were the best thing since sliced bread.

They traded north of 57 amid hot gossip of a 70-a-share cash offer from US equipment maker Cisco Systems. Then kapow!, shareholders woke up and it's been downhill ever since.

Yesterday, they crashed to 22.08p before closing 12.5p, or 34pc, down at a year's low of 24.50p following another profits warning.

News that founder and chief executive Dr Zvi Marom had bought 450,000 shares at an average price of 22.917p following the dire statement cut no ice with one major shareholder.

Gartmore, which held 15pc of the equity, is rumoured to have jumped ship, swelling turnover in the stock to a mammoth 48m-plus, well above the recent daily average of about 800,000.

BATM warned that first-half revenues and profits are expected to be significantly below estimates, due primarily to a poor performance from the telecom division.

Although the outlook is improving, with strong demand from the US, the group is expected to only break even in the first half of the year.

Broker Altium Securities downgraded to sell from hold and slashed its pretax profit forecast for the current year to 16m from 24.4m and earnings per share to 3.9p from 6p.

Share price keeps falling and is soon ready to touch the past Intraday low of 22.50p.

DIVIDEND - dates

AGM on the 22 June
ex-Dividend 2nd July
payment on 26th July 1.35p

With the special dividend, gives a near 6% return on current SP.

A good spike at 2pm, with plenty of "AT" trades, NOT buying trades, so that could be one of those things.
Nevertheless if it finish UP then the Chart is starting to look better.

Wonder if anything to do with the Tech movement. This morning SPT was also on the move UP, as it was yesterday.

25p +1.75

Interim results tomorrow

Is the poor showing on the share price to change?, it will have to go over 27p this week or 26p next

The statement tomorrow could change that, or maybe the breakeven is a bit better.

Once again JAM tomorrow, not good enough

The BREAKEVEN forecast for the H1 was again a hope, because turn out as a loss of $1.5M

Share price performance this morning is telling the story 23.25 / 24p -2p

RESULTS in FULL

RNS Number : 7832Q
BATM Advanced Communications Ld
10 August 2010

BATM Advanced Communications Limited
Interim Results 2010

BATM Advanced Communications Limited ("BATM" or "the Company") (LSE: BVC), a
leading designer and producer of broadband data and telecoms systems and medical
laboratory systems, announces its interim results for the six months ended 30
June 2010.

Half Year Highlights

+------------------------+---------------+------------+------------+
| Six months ended 30 | 2010 (H1) | 2009 (H1) | Change % |
| June | | | |
+------------------------+---------------+------------+------------+
| Revenue | $55.3m | $69.0m | (19.9%) |
+------------------------+---------------+------------+------------+
| Gross profit | $19.8m | $30.0m | (34.0%) |
+------------------------+---------------+------------+------------+
| EBITDA | $2.1m | $14.2m | (85.2%) |
+------------------------+---------------+------------+------------+
| Income / (loss) per | (0.21)c | 3.35c | (106.2%) |
| share | | | |
+------------------------+---------------+------------+------------+

Highlights
- Revenues of $55.3m
- Strong Balance sheet with $62.8m in liquid investments (Dec 09: $66.8m)
- Net profit close to break-even
- Dividends totalling $8.1 million paid on July 26 2010
- Completion of office consolidation in US and Israel into offices purchased
in 2009

Dr Zvi Marom, Chief Executive of BATM said:

"Despite the decline in Telecom division revenues, primarily from one OEM
customer, BATM has strengthened its core technological offering and is
developing other sales channels to leverage these new, market leading products.
Even though the results of this process will not be immediate, BATM is confident
that replacement revenues will be found and several new customers will join the
users of our IP line.

"BATM's Medical division has grown by 50% (more than half of it due to organic
growth) on the same period last year and the progress that this division
continues to make both in revenues and profitability, as well as in
technological innovation, continues to highlight the importance of the division
to our business model. We expect that in 2011 all parameters of the division
will improve and we expect to sign significant contracts.

"Despite the slow start to the year, the second half is expected to be
substantially stronger than the first half."


For further information please contact: 10 Aug
Thereafter

BATM Advanced Communications Limited
Dr Zvi Marom, Chief Executive 00 972 9 866 2525
00 972 9 866 2525
Ofer Bar-Ner, Chief Financial Officer 00 1 34 7218 2431
00 1 34 7218 2431
Alon Zieve, Director of Finance 00 972 52 600 6902
00 972 52 600 6902

Singer Capital Markets
Shaun Dobson 020 3205 7626
020 3205 7626

Shore Capital
Pascal Keane 020 7408 4090
020 7408 4090

Threadneedle Communications
Josh Royston / Graham Herring 020 7653 9850
020 7653 9850


Chairman's Statement

Financial Review

Revenues for the first half of 2010 fell by $13.7 million to $55.3 million. This
was comprised of Telecoms division revenue of $35.7 million (2009: $55.9
million) and Medical division revenue of $19.6 million (2009: $13.1 million), an
increase of 50%. The decrease in the Telecoms division was primarily due to a
significant decline of revenues during the period from a major OEM channel, as
compared to those in the equivalent period in 2009.

The gross profit margin has decreased from 43.5% in H1 2009 to 35.8% in line
with the interim management statement released in May. The decrease is primarily
due to the change in sales mix but has also been adversely affected by the
substantial decrease in the Euro / US Dollar exchange rate. This has been
slightly offset by an increase in the gross margin in the Medical division.

Sales and marketing expenses in the first half of 2010 were $7.2m (H1 2009:
$6.7m) - an increase of 7% over the same period last year. The increase is
mainly due to the expansion of our laboratory diagnostics offering. As a
percentage of revenue, sales and marketing expenses were 13.0% (H1 2009: 9.7%).

General and administrative expenses in the first half of 2010 were $4.8m (H1
2009: $4.5m). These costs have similarly increased due to the expansion of our
laboratory diagnostics offering. This increase has been slightly offset by
consolidation of our operations in both the United States and Israel into
centralized sites during the middle of the first half of 2010, and associated
cost savings. As a percentage of revenue, general and administrative expenses
were 8.6% (H1 2009: 6.6%).

Net R&D expense in the first half of 2010 was $6.5m (H1 2009: $5.8m), an
increase of 12%. This increase is again primarily associated with the expansion
of our laboratory diagnostics offering and expanded R&D department working on
immunology diagnostic products.

The operating loss in the first half of 2010 was $1.4m (H1 2009: profit of
$10.8m). The decrease is mainly as a result of the decrease in revenues and
lower gross profit margins. Our surveillance operations generated a loss of $1
million in the first half of the year. In addition this loss is after increased
operating expenses of $1 million associated with the expansion of our medical
diagnostic offering and $0.8 million of non-recurring restructuring costs from
the consolidation of US operations

EBITDA has decreased to $2.1 million from $14.2 million in H1 2009.

Net finance income in the first half of 2010 was $1.0m (H1 2009: $2.9m). The
decrease is largely due to a decrease in income from foreign exchange gains and
associated hedges on USD balances, from $2.2 million in 2009 to $0.6 million in
2010.

Tax expenses of $1.2 million includes $0.7 million tax on dividends of $8.1
million part of which were from profits from the approved enterprise scheme and
therefore incur tax on distribution, and an exceptional tax expense in Italy.

Net loss after tax in the first half of 2010 amounted to $1.5m (H1 2009: profit
of $12.9m), resulting in a basic loss per share of 0.21 cents (H1 2009: profit
of 3.35 cents).

Our balance sheet remains strong with effective liquidity of $62.8m. This has
decreased by $4.0m from $66.8m as at 31 December 2009. This decrease is
primarily due to erosion of our Euro denominated cash by the strengthening of
the US Dollar. Period end cash is comprised as follows: cash and deposits up to
three months duration of $30.2m; short-term cash deposits up to one year of
$29.6m; $3.0m is held in investments including $1.0m in triple A bank notes
falling due at the end of 2010; and $2.0m in bonds that announced early
repayment and were paid on 15 July 2010. As the dominant economic environment
has been Euro denominated, the majority of the Company's liquid assets are held
in this currency.

Business Review

Telecoms Division
This first half of the year has been marked by a significant decrease of
revenues to a major OEM customer and an operating loss of $1 million generated
by our surveillance business. As a result of the declining OEM market management
has put an increased focus on the development of direct sales and alternative
complimentary OEM channels. Management has also identified areas in which costs
can be reduced in those parts of the division that have suffered.

In the first half of 2010 BATM released two niche packet backhaul products
including both a cell site gateway and 10G multi-service aggregation switch.
Orders were received for both products on release, and we expect demand to grow
into next year. BATM intends to release its unique service management solution
towards the end of the year. Several requests from major customers for pilots
have been received and a few important customers were selected for field trials.
The combination of these products gives service providers the ability to migrate
cost effectively their wireless networks to 3G and 4G without having to replace
their core networks. This new product suite, as well as planned future
offerings, puts BATM in an excellent position to increase its direct sales to
service providers under its Telco Systems brand in the coming years.

During H1 2010 we consolidated operations both in the United States and Israel
into two new offices purchased in the second half of 2009, capitalizing on
unique opportunities in the real estate market. This move will reduce the
operational overheads in both locations and cost savings will be realised in the
second half of this year. In addition we have taken steps to reduce the cost
base of parts of the division associated with weaker product lines. These cost
savings should reduce operating expenses by approximately $1 million per annum.
Our surveillance operations generated an operational loss of $1 million and
changes to personnel and the business model have been made in order to bring the
business into operational balance by the end of 2010.

As part of the strategic progress described above, BATM attained important
achievements in the first half of the year. As reported earlier in the year a
licensing agreement was signed with a major chip manufacturer and our
relationship with a relatively new tier two OEM customer has shown very positive
signs. These developments are expected to yield revenues of several million US
dollars from 2011 onwards. Management believes that despite the difficulties
that have faced the Telecom Division due to the decline in its major OEM
business there are good prospects of a return to growth.

Medical Division
During the first half of 2010 the Medical Division has made exceptional
progress. Revenues have grown by 50% compared with the same period in 2009, of
which approximately half was organic growth, and the gross margins are steadily
increasing. Gross margins in the division are expected to approach the
mid-twenty percent later this year and will continue to rise as marketing of
reagents with the machines ramps up towards the end of this year. The growth has
been driven by new sales channels in all of our small-mid laboratory businesses
both in the sterilization and diagnostics offerings. Channels have been
developed in BRIC countries as well as in the Middle East and Europe. BATM has
put great emphasis on emerging markets and believes that it can further enhance
its position in these markets this year.

The Medical division has unveiled a highly innovative new product in our
sterilization line that offers an extremely cost effective medical waste
disposal solution to medical centres. BATM expects to register several patents
on this IP and a backlog of orders for this product has already been generated
for 2011. The Research and Development department of the diagnostic line are
currently developing solutions that are designed to increase the speed and cost
effectiveness of clinical chemistry tests.

In the second half of the year we will continue to consolidate our Medical
businesses which we believe will lead to modest cost savings and increased sales
synergies.

Prospects
Despite the disappointing start to the year, due almost exclusively to the low
orders from our major OEM customer, from April onwards we have begun to see
positive signs in our business. We have signed two licensing agreements with new
customers, including an agreement reported in April 2010 with a leading
semi-conductor manufacturer, to license some of our mobile backhaul technology.
Backlog orders have been received for our new Metro devices and deliveries will
start in H2. Revenues from the licensing will begin in mid 2011 and are
initially expected to be in the region of several US$ million. There have also
been strong orders in the Medical division at the start of H2.
We expect to see the upwards trend continue in the second half of 2010.
Management is encouraged by the positive signs in the business at the end of H1
and beginning of H2. The sales mix to date is expected to continue and
management expects that revenues for the full year will reach in the region of
$120 million and that profitability in the second half of the year, as
previously reported in the Interim Management Statement, will be in line with
that of the second half of 2009.


Peter Sheldon
Chairman

10 August 2010
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED INCOME STATEMENTS
+--------------------------------------+--------------+--------------+
| | Six months ended 30 |
| | June |
+--------------------------------------+-----------------------------+
| | | 2 0 0 9 |
| | 2 0 1 0 | |
+--------------------------------------+--------------+--------------+
| | US$ in thousands |
+--------------------------------------+-----------------------------+
| | Unaudited | Unaudited |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Revenues | 55,285 | 68,995 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Cost of revenues | 35,487 | 39,012 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Gross profit | 19,798 | 29,983 |
+--------------------------------------+--------------+--------------+
| | --------- | --------- |
+--------------------------------------+--------------+--------------+
| Operating expenses | | |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Sales and marketing expenses | 7,212 | 6,716 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| General and administrative | 4,781 | 4,524 |
| expenses | | |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Research and development expenses | 6,522 | 5,842 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Other operating expenses | 2,656 | 2,080 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Total operating expenses | 21,171 | 19,162 |
+--------------------------------------+--------------+--------------+
| | --------- | --------- |
+--------------------------------------+--------------+--------------+
| Operating (loss) profit | (1,373) | 10,821 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Investment revenue | 818 | 806 |
+--------------------------------------+--------------+--------------+
| Gains (losses) on financial | (1,122) | 1,057 |
| instruments | | |
+--------------------------------------+--------------+--------------+
| Foreign exchange differences | 1,711 | 1,158 |
+--------------------------------------+--------------+--------------+
| Finance cost | (372) | (160) |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Profit / (loss) before tax | (338) | 13,682 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Tax | (1,194) | (800) |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Profit / (loss) for the period | (1,532) | 12,882 |
| | | |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Attributable to: | | |
+--------------------------------------+--------------+--------------+
| Owners of the Company | (867) | 13,451 |
+--------------------------------------+--------------+--------------+
| Non-controlling interests | (665) | (569) |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Income / (loss) for the period | (1,532) | 12,882 |
+--------------------------------------+--------------+--------------+
| | | |
+--------------------------------------+--------------+--------------+
| Earnings / (loss) per share (in | (0.21) | 3.35 |
| cents) basic | | |
+--------------------------------------+--------------+--------------+
| Earnings / (loss) per share (in | (0.21) | 3.34 |
| cents) diluted | | |
+--------------------------------------+--------------+--------------+
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
+--------------------------------------+------------+-----------+
| | Six months ended 30 |
| | June 30, |
+--------------------------------------+------------------------+
| | | 2 0 0 9 |
| | 2 0 1 0 | |
+--------------------------------------+------------+-----------+
| | US$ in thousands |
+--------------------------------------+------------------------+
| | Unaudited | Unaudited |
+--------------------------------------+------------+-----------+
| | | |
+--------------------------------------+------------+-----------+
| Profit / (loss) for the period | (1,532) | 12,882 |
+--------------------------------------+------------+-----------+
| Exchange differences on translating | (10,994) | 1,352 |
| foreign operations | | |
+--------------------------------------+------------+-----------+
| Total Comprehensive Income (loss) of | (12,526) | 14,234 |
| the Period | | |
+--------------------------------------+------------+-----------+
| Attributable to: | | |
+--------------------------------------+------------+-----------+
| Owners of the Company | (12,144) | 14,610 |
+--------------------------------------+------------+-----------+
| Non-controlling interests | (382) | (376) |
+--------------------------------------+------------+-----------+
| | (12,526) | 14,234 |
+--------------------------------------+------------+-----------+
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

+-------------------------------+-----------------------+----------------------+----------------------+
| | 30 June | 30 June | 31 December |
+-------------------------------+-----------------------+----------------------+----------------------+
| | 2 0 1 0 | 2 0 0 9 | 2 0 0 9 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | US$ in thousands |
+-------------------------------+---------------------------------------------------------------------+
| | Unaudited | Unaudited | Audited |
+-------------------------------+-----------------------+----------------------+----------------------+
| Non-current assets | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
| Goodwill | 11,060 | 12,345 | 11,345 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Other intangible assets | 20,546 | 26,794 | 23,323 |
| Property, plant and equipment | 22,106 | 12,956 | 21,911 |
| Held to maturity investments | - | 5,871 | 4,347 |
| Deferred tax asset | 4,678 | 2,065 | 4,848 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | 58,390 | 60,031 | 65,774 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Current assets | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Inventories | 19,792 | 17,392 | 22,040 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Investments | 32,622 | 35,093 | 34,332 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Trade and other receivables | 25,920 | 36,985 | 31,171 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Cash and cash equivalents | 30,173 | 28,117 | 28,095 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | 108,507 | 117,587 | 115,638 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Total assets | 166,897 | 177,618 | 181,412 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
| Current liabilities | | | |
| Short-term bank credit | 5,875 | 6,477 | 6,139 |
| Trade and other payables | 28,969 | 32,023 | 21,624 |
| Provisions | 3,806 | 2,818 | 3,505 |
| | 38,650 | 41,318 | 31,268 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Net current assets | 69,857 | 76,269 | 84,370 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Non-current liabilities | | | |
| Long-term payables | 12,755 | 7,546 | 14,219 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Retirement benefit obligation | 793 | 983 | 875 |
| | 13,548 | 8,529 | 15,094 |
| Total liabilities | 52,198 | 49,847 | 46,362 |
| | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Net assets | 114,699 | 127,771 | 135,050 |
+-------------------------------+-----------------------+----------------------+----------------------+
| | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Equity | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Share capital | 1,214 | 1,212 | 1,214 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Share premium account | 406,263 | 405,465 | 405,961 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Foreign currency translation | | | |
| reserve and other reserves | (14,673) | (5,115) | (3,229) |
+-------------------------------+-----------------------+----------------------+----------------------+
| Accumulated Deficit | (279,802) | (277,874) | (270,808) |
+-------------------------------+-----------------------+----------------------+----------------------+
| Equity attributable to equity | | | |
| holders of the: | | | |
+-------------------------------+-----------------------+----------------------+----------------------+
| Owners of the Company | 113,002 | 123,688 | 133,138 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Non-controlling interest | 1,697 | 4,083 | 1,912 |
+-------------------------------+-----------------------+----------------------+----------------------+
| Total equity | 114,699 | 127,771 | 135,050 |
+-------------------------------+-----------------------+----------------------+----------------------+

BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


Six month ended on 30 June 2010

+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| | | Share | | | | | | |
| | Share |Premium |Translation | Other |Accumulated |Attributable |Non-Controlling | Total |
| |Capital |Account | reserve |reserve | Deficit |to owners of | Interests | equity |
| | | | | | | the Company | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| | US$ in thousands |
+---------------+-----------------------------------------------------------------------------------------------------+
| As at 1 | | | | | | | | |
| January | | | | | | | | |
| 2010 | 1,214 | 405,961 | (4,015) | 786 | (270,808) | 133,138 | 1,912 | 135,050 |
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| Exercise | | | | | | | | |
| of share | | | | | | | | |
| based | | | | | | | | |
| options | - | 83 | | | | 83 | - | 83 |
| by | | | | | | | | |
| employees | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| Recognition | | | | | | | | |
| of | | | | | | | | |
| share-based | | 219 | | | | 219 | - | 219 |
| payments | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| Purchase | | | | | | | | |
| of non- | | | | | | | | |
| controlling | | | | (167) | | (167) | 167 | - |
| interest | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| Proposed | | | | | | | | |
| Dividend | | | | | (8,127) | (8,127) | - | (8,127) |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| Comprehensive | | | | | | | | |
| loss for the | | | (11,277) | | (867) | (12,144) | (382) | (12,526) |
| period | - | - | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
| As at 30 | | | | | | | | |
| June | | | | | | | | |
| 2010 | 1,214 | 406,263 | (15,292) | 619 | (279,802) | 113,002 | 1,697 | 114,699 |
| (unaudited) | | | | | | | | |
+---------------+---------+---------+-------------+---------+-------------+--------------+-----------------+----------+
BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (cont.)

+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Six month ended on 30 June 2009 | |
| | |
+------------------------------------------------------------+----------------------------------------------------------+
| | | Share | | | |Attributable | | |
| | Share |Premium |Translation | Other | Accumulated |to Owners of |Non-Controlling | Total |
| |Capital |Account | reserve |reserves | Deficit | the Company | Interests | equity |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| | US$ in thousands |
+---------------+-------------------------------------------------------------------------------------------------------+
| As at 1 | | | | | | | | |
| January | | | | | | | | |
| 2009 | 1,210 | 404,928 | (6,060) | - | (286,764) | 113,314 | 4,459 | 117,773 |
| | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Exercise | | | | | | | | |
| of share | | | | | | | | |
| based | | | | | | | | |
| options | 2 | 139 | | | | 141 | - | 141 |
| by | | | | | | | | |
| employees | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Recognition | | | | | | | | |
| of | | | | | | | | |
| share-based | | 398 | | | | 398 | - | 398 |
| payments | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Purchase | | | | | | | | |
| of non- | | | | | | | | |
| controlling | | | | (214) | | (214) | - | (214) |
| interest | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Proposed | | | | | | | | |
| Dividend | | | | | (4,561) | (4,561) | - | (4,561) |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| Comprehensive | | | | - | | 14,610 | | |
| income for | | | 1,159 | | 13,451 | | ( 376) | 14,234 |
| the period | | - | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+
| As at 30 | | | | | | | | |
| June | | | | | | | | |
| 2009 | 1,212 | 405,465 | (4,901) | (214) | (277,874) | 123,688 | 4,083 | 127,771 |
| (unaudited) | | | | | | | | |
+---------------+---------+---------+-------------+----------+--------------+--------------+-----------------+----------+


BATM ADVANCED COMMUNICATIONS LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS


+----------------------------------------+---------------+---------------+
| | Six months ended 30 June |
+----------------------------------------+-------------------------------+
| | | |
+----------------------------------------+---------------+---------------+
| | 2 0 1 0 | 2 0 0 9 |
+----------------------------------------+---------------+---------------+
| | |
+----------------------------------------+-------------------------------+
| | US$ in thousands |
+----------------------------------------+-------------------------------+
| | | |
+----------------------------------------+---------------+---------------+
| | Unaudited | Unaudited |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Net cash from operating activities | 7,208 | 15,943 |
| (Appendix A) | | |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Investing activities | | |
+----------------------------------------+---------------+---------------+
| | | |
| Interest received | 570 | 736 |
| Proceeds on disposal of held to | 1,183 | 1,050 |
| maturity investments | | |
| Proceeds on disposal of financial | 13,108 | 18,095 |
| assets carried at fair value through | 21,805 | 10,000 |
| profit and loss | | |
| Proceeds on disposal of deposits | | |
+----------------------------------------+---------------+---------------+
| Purchases of property, plant and | (1,881) | (2,407) |
| equipment | | |
| Purchases of financial assets carried | (16,672) | (14,991) |
| at fair value through profit and loss | (19,328) | (27,953) |
| Purchases of deposits | | |
+----------------------------------------+---------------+---------------+
| Investment in other business | (959) | (4,440) |
| combinations | | |
+----------------------------------------+---------------+---------------+
| Acquisition of subsidiaries (Appendix | - | 183 |
| B) | | |
+----------------------------------------+---------------+---------------+
| Net cash used in investing activities | (2,174) | (19,727) |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Financing activities | | |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Increase (decrease) in short-term bank | (1,779) | 191 |
| credit | | |
+----------------------------------------+---------------+---------------+
| Bank loan received | 1,500 | - |
+----------------------------------------+---------------+---------------+
| Bank loan repayment | (462) | - |
+----------------------------------------+---------------+---------------+
| Proceeds on issue of shares | 83 | 141 |
+----------------------------------------+---------------+---------------+
| Net cash from (used in) financing | (658) | 332 |
| activities | | |
+----------------------------------------+---------------+---------------+
| | ------------- | ------------- |
+----------------------------------------+---------------+---------------+
| Increase (decrease) in cash and cash | 4,376 | (3,452) |
| equivalents | | |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Cash and cash equivalents at the | | |
| beginning of the period | 28,095 | 30,737 |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Effects of exchange rate changes on | | |
| the balance of cash held in foreign | (2,298) | 832 |
| currencies | | |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
| Cash and cash equivalents at the end | 30,173 | 28,117 |
| of the period | | |
+----------------------------------------+---------------+---------------+
| | | |
+----------------------------------------+---------------+---------------+
BATM ADVANCED COMMUNICATIONS LTD.
APPENDICES TO CONSOLIDATED STATEMENT OF CASH FLOWS

APPENDIX A
RECONCILIATION OF OPERATING PROFIT (LOSS) FOR THE PERIOD TO NET CASH
FROM OPERATING ACTIVITIES
+----------------------------------------------+-----------+-----------+
| | Six months ended |
| | 30 June |
+----------------------------------------------+-----------------------+
| | 2 0 1 0 | 2 0 0 9 |
+----------------------------------------------+-----------+-----------+
| | US$ in thousands |
+----------------------------------------------+-----------------------+
| |Unaudited |Unaudited |
+----------------------------------------------+-----------+-----------+
| | | |
+----------------------------------------------+-----------+-----------+
| Operating (loss) profit from continuing | (1,373) | 10,821 |
| operations | | |
| Adjustments for: | | |
+----------------------------------------------+-----------+-----------+
| Amortization of intangible assets | 1,890 | 2,080 |
+----------------------------------------------+-----------+-----------+
| Depreciation of property, plant and | 1,299 | 1,309 |
| equipment | | |
+----------------------------------------------+-----------+-----------+
| Stock options granted to employees | 219 | 398 |
+----------------------------------------------+-----------+-----------+
| Increase (decrease) in retirement benefit | (82) | 62 |
| obligation | | |
+----------------------------------------------+-----------+-----------+
| Increase (decrease) in provisions | 14 | (13) |
| | | |
+----------------------------------------------+-----------+-----------+
| Operating cash flow before movements in | 1,967 | 14,657 |
| working capital | | |
+----------------------------------------------+-----------+-----------+
| Decrease in Inventory | 1,906 | 3,953 |
+----------------------------------------------+-----------+-----------+
| Decrease (Increase) in receivables | 4,112 | (7,844) |
+----------------------------------------------+-----------+-----------+
| Increase (decrease) in payables | (236) | 5,446 |
+----------------------------------------------+-----------+-----------+
| Cash generated by operations | 7,749 | 16,212 |
+----------------------------------------------+-----------+-----------+
| Income taxes paid | (169) | (109) |
| | | |
+----------------------------------------------+-----------+-----------+
| Interest paid | (372) | (160) |
+----------------------------------------------+-----------+-----------+
| Net cash from operating activities | 7,208 | 15,943 |
+----------------------------------------------+-----------+-----------+

APPENDIX B
ACQUISITION OF SUBSIDIARIES
+--------------------------------------------------------+----------+-----------+
| | Six months ended |
| | 30 June |
+--------------------------------------------------------+----------------------+
| | 2 0 0 9 |
+--------------------------------------------------------+----------------------+
| | US$ in thousands |
+--------------------------------------------------------+----------------------+
| | |Unaudited |
+--------------------------------------------------------+----------+-----------+
| Net assets acquired | | |
+--------------------------------------------------------+----------+-----------+
| Property, plant and equipment | | 1,359 |
+--------------------------------------------------------+----------+-----------+
| Inventory | | 205 |
+--------------------------------------------------------+----------+-----------+
| Trade and other receivables | | 446 |
+--------------------------------------------------------+----------+-----------+
| Trade and other payables | | (2,374) |
| Short-term bank credit | | (2,641) |
+--------------------------------------------------------+----------+-----------+
| Long-term payables | | (3,149) |
+--------------------------------------------------------+----------+-----------+
| Non-controlling Interest | | ____- |
+--------------------------------------------------------+----------+-----------+
| | | (6,154) |
+--------------------------------------------------------+----------+-----------+
| Intangible assets | | 5,971 |
+--------------------------------------------------------+----------+-----------+
| Total consideration | | (183) |
+--------------------------------------------------------+----------+-----------+
BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - General

The unaudited results for the six months ended 30th June 2010 have been prepared
in accordance with International Financial Reporting Standards (IFRS) set out in
the Annual Report and Financial Statements for the year ended 31 December 2009.
The unaudited results for the six months ended 30th June 2009 were prepared on
the same basis.
During the period the following standards came into effect:
Improvements to IFRSs 2009 Improvements to IFRSs 2009


Note 2 - Profit (loss) per share

Profit (loss) per share is based on the weighted average number of shares in
issue for the period of 402,393,379 (H1 2009: 401,171,587). The number used for
the calculation of the diluted profit per share for H1 2010 (which includes the
effect of dilutive stock option plans) is 403,894,193 shares (H1 2009:
402,239,043).


Note 3 - Acquisition of Subsidiaries

During June 2010 the Group acquired the trade and assets of an Israeli Telecoms
software services provider called Balora Ltd ("Balora") for a consideration of
$0.8 million.

As of the authorization of these financial statements, the Purchase Price
Allocation ("PPA") of Balora had not been completed. The allocation used for
these financial statements represent management best estimates.


Note 4 - Segments

Business Segment

+-----------------+-+------------------+------------+---------------+
| Six months ended 30 June 2010 |
+-------------------------------------------------------------------+
| | | | |
| |Telecommunications | | Total |
| | | Medical | |
+-----------------+--------------------+------------+---------------+
| US$ in thousands |
+-------------------------------------------------------------------+
| | | | |
+-------------------+------------------+------------+---------------+
| Revenues | 35,648 | 19,637 | 55,285 |
+-------------------+------------------+------------+---------------+
| | | | |
+-------------------+------------------+------------+---------------+
| Operating profit | 1,775 | (492) | 1,283 |
| (loss)* | | | |
+-------------------+------------------+------------+---------------+
| | | | | |
+-----------------+-+------------------+------------+---------------+

* Excluding other operating expenses


BATM ADVANCED COMMUNICATIONS LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 4 - Segments (Cont.)

+------------------+--------------------+------------+----------+
| Six months ended 30 June 2 0 0 9 |
+---------------------------------------------------------------+
| | | | |
| |Telecommunications | | Total |
| | | Medical | |
+------------------+--------------------+------------+----------+
| US$ in thousands |
+---------------------------------------------------------------+
| | | | |
+------------------+--------------------+------------+----------+
| Revenues | 55,915 | 13,080 | 68,995 |
+------------------+--------------------+------------+----------+
| | | | |
+------------------+--------------------+------------+----------+
| Operating profit | 13,158 | (257) | 12,901 |
| (loss)* | | | |
+------------------+--------------------+------------+----------+

* Excluding other operating expenses

Note 5- Events during the period

During the period there was a significant decrease in revenues from a major OEM
customer.

Note 6- Events after the balance sheet date

Dividend
A dividend of GBP 1.35 per share, totalling GBP 5,408 thousand ($8,127
thousand), was declared on 8 February 2010 and paid on 26 July 2010.

A ten year chart shows the stark difference in fortunes for 2 former tech 'darlings'.

LONDON (SHARECAST) - Increased medical technology sales at BATM Advanced Communications Ltd failed to offset the decline in telecommunications equipment revenues.

Overall revenues fell by one-fifth to $55.3m in the six months to June 2010. Medical revenues are more than one-third of the total. A profit of $13.7m was turned into a loss of $338,000 in the latest six month period. Net cash and investments were $56.9m at the end of June 2010. Since then $8.13m has been paid in dividends.

BATMs main telecoms customer has been hit by Chinese competition. BATM is trying to widen its customer base and that is leading to higher overheads.

KBC Peel Hunt forecasts a full year profit of $6.9m. In the second half, medical should continue to grow revenues and telecoms should recover.