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MTI Wireless Edge Ltd on Monday announced an increase in revenue as demand for all divisions rose and supply chain costs were passed on.
For the six months ended 30 June, the Israel-based communication and radio frequency technology company reported revenue growth of 6% to $22.7 million from $21.3 million a year before. This was due to increased sales and high demand from all three of the company's divisions, despite scarce microchip supply and increasing costs, said MTI Wireless.
Additionally, the company's newly acquired majority stake in PSK Wind Technologies Ltd was ‘immediately successful’ as integration proceeds and the business secured the largest contract for MTI Wireless with the Israeli Ministry of Defence. The contract is worth up to $10 million over the next seven years.
PSK Wind specialises in ‘the development, manufacture and integration of communication systems and advanced monitoring and control systems for the government and defence industry market’.
Pretax profit was virtually the same as a year prior at $2.0m. MTI Wireless said its order book for all divisions is strong, and it has been able to pass supply chain cost increases on to customers because it targets expanding markets.
MTI Wireless did not declare an interim dividend, however, in March it paid a dividend of 2.8 US Cents per share, slightly up from 2.5 US Cents a year prior.
Looking ahead, MTI Wireless said its profitability will improve now that the one-off costs associated with the acquisition have been absorbed. Cash flow is also expected to improve in the second half as target markets expand and demand increases.
Chief Executive Officer Moni Borovitz said: ‘This has been a good trading period for the group, with all divisions making operational profits. In the context of the challenging trading conditions we have faced, including the rising inflation and the difficulties in supply chain... the board is very pleased with the results. There are some signs of the supply chain issues easing and, as importantly, we have a healthy order book going into the second half of the year and beyond. We have been able to successfully put through a number of price increases, which will ensure we can maintain our target profit margins. As a result, we feel confident about the outcome for the full year.’
Shares in MTI Wireless were down 4.7% at 57.67 pence in London on Monday morning.
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