Home | Log In | Register | Our Services | My Account | Contact | Help |
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
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.
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.
re - now owns its own real estate
Steps needed to prevent bulletin-board misuse -- August 13 2010 19:18
Online investor bulletin boards occasionally provide me with some snippets of useful information but I always take pains to validate this information from more reputable sources before I trust it. ................
Turning to my own trades not influenced by bulletin boards I have been monitoring price swings in BATM Advanced Communications (ticker symbol: BVC) for several weeks.
BATM is a leading producer of broadband and telecoms system components. It also has a rapidly growing medical diagnostic division. But it has given investors a painful time in 2010. Its shares fell sharply in February after it stated that revenues had weakened due to the loss of a key customer.
As our price chart shows, the shares fell further in May in response to an interim management statement that repeated Februarys warning.
This caught my attention because it was old news which I assumed had been reflected in the share price since February. Mays statement also noted that the revenue trend was improving in spite of the loss of that key customer. Investors ignored this positive news.
Prices fell, yet again, last Tuesday morning in response to a poorly received first-half earnings statement. The company reported a small loss.
Given that the stock market is usually forward-looking, I could not help but wonder how many times the shares could sell-off on the same bad news.
It seems the downturn came to an end at 8:06am six minutes after the markets opened. Prices fell about 15 per cent and then began to recover. The briefness of the sell-off plus the length of time that the bad news had been in the market led me to conclude that all the nervous money was finally shaken out. I decided to pounce at what I believed to be a bargain basement price.
I do not think it much of a gamble. Tuesdays report also contained a healthy dollop of good news. Revenues in BATMs medical division are 50 per cent ahead of last year and growth shows no sign of slowing. Medical profit margins are low in this financial year because the company is spending heavily to exploit its opportunity. But margins should improve in 2011 in line with rising revenues.
BATMs troubled telecoms division also reported good news. Orders were quickly received for two new products, while a third major product is undergoing trials, so the company expects division revenues to rise sharply in 2011.
Robin Speakman of Shore Capital provides the cherry on the cake. BATM has valuable real estate holdings on its books. He estimates that their value equates to about 10p per share. Few investors are aware of this. The companys cash and near cash is worth another 10p per share. But the current share price is only 24.25p. At this price, its like buying a cash pile with a high potential telecoms supplier and a booming medical testing division thrown in for free.
Stock market historian David Schwartz is an active short-term trader, writing about his own trades and strategies
David Schwartz buys for his portfolio