MTI Wireless Edge Limited (LON:MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announced its unaudited results for the three months ended 31 March 2018.
· Revenues decreased by less than 1% year-on-year to $6.16m (Q1 2017: $6.21m)
· Profit before tax decreased year-on-year to $166,000 (2017: $233,000)
· Earnings per share doubled year-on-year to 0.91 US cents (2017: 0.43 US cents), due to a large tax income credit.
· Cash flow from operations tripled to $1.6m (2017: $0.5m).
· Shareholder’s equity grew during the period to $20.6m (31 December 2017: $20.1m), equivalent to 27.5 pence per share*.
* Calculated at £/$ rate of 1.35
Dov Feiner, CEO of MTI Wireless Edge Limited, commented: “During the first quarter of 2018 we continued to see good progress in meeting our internal goals in both segments of our business. In our wireless controller segment, via Mottech, we see opportunities to grow the business in the various geographical areas we are now focusing on, including North America and China. In the antenna segment we continue to see good demand in our military, RFID and Millimetre Wave solutions. Given the current orderbook and pipeline of opportunities in both segments, we have a strong belief that our growth will continue in 2018 and beyond.
We finished the first quarter with operational profits below last year’s equivalent profit, but this was due to us taking a calculated long term view of the business and increasing the investment in development and sales efforts. We believe that during the reminder of the year we will achieve our goal of increasing revenue and profits year on year.
Pleasingly our EPS has doubled in the first quarter due to large tax credit relating to future tax relief that we are entitled to in our operation in India. This is a result of a change in the tax regime which has allowed us to reduce our tax liability.
We have recently announced a proposed amalgamation with MTI Computers & Software Services (1982) Ltd, our parent company, and are progressing this transaction. We believe the transaction to be in the best interests of all shareholders and we are working to complete it as quickly as possible. Further announcements about the merger will be made as appropriate.”