REG - MTI Wireless Edge - 1st Quarter Results <Origin Href="QuoteRef">MWEE.L</Origin> - Part 1
RNS Number : 6624EMTI Wireless Edge Limited10 May 2017Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)
10 May 2017
MTI Wireless Edge Ltd
("MTI" or the "Company")
Financial results for Q1 2017
MTI Wireless Edge Ltd. (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announces its unaudited results for the three months ended 31 March 2017.
Highlights:
Revenues increased by 18% year-on-year to $6.2m (Q1 2016: $5.3m)
Gross profit increased 38% year-on-year to $2.46m (Q1 2016: $1.78m)
Operating profit of $0.45m (Q1 2016: loss of $0.1m)
Earnings per share of 0.43 US cents (Q1 2016: loss of 0.29 US cents)
Shareholder's equity grew during the period to $19.4m (31 December 2016: $18.9m), equivalent to 28.4 pence per share.
Dov Feiner, CEO of MTI Wireless, commented:
"During the first quarter of 2017 we continued to see growth in both segments of our business. In our wireless controller segment, via Mottech, we see many additional opportunities to grow the business in various geographical areas, some of which we announced recently. In the antenna segment we continue to see good demand in all areas (military, RFID and broadband access) and given the current orderbook and pipeline of opportunities in the antenna segment, we have a strong belief that the growth will continue in 2017 and beyond.
Notwithstanding the decline in value of the US dollar against the New Israeli Shekel in Q1 2017 we were delighted to grow the operating profit, as this decline is reflected in the higher financial costs we incurred during the quarter. We believe that once the exchange rate stabilises our net earnings will grow even further".
For further information please contact:
MTI Wireless Edge Ltd
Dov Feiner, CEO
Moni Borovitz, Financial Director
+972 3 900 8900
Nomad and Joint Broker
Allenby Capital Limited
Nick Naylor
Alex Brearley
+44 20 3328 5656
Joint Broker
Peterhouse Corporate Finance LimitedLucy Williams
Eran Zucker
+44 20 7469 0930
About MTI Wireless Edge
MTI is engaged in the development, production and marketing of high quality low cost, flat panel antennas for commercial and military applications. Commercial applications include: WiMAX, Wireless Networking, RFID readers &, Broadband Wireless Access. With over 40 years' experience of supplying antennas 100KHz to 90GHz, including directional antennas and Omni directional for outdoor and indoor deployments including Smart Antennas for WiMAX, Wi-Fi, Public Safety, RFID and for Base Stations and Terminals - Utility Market. Military applications include a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.
Via its subsidiary, Mottech Water Solutions Ltd, MTI is also a leading provider of remote control solutions for water and irrigation applications based on Motorola's IRRInet state of the art control, monitoring and communication technologies. Mottech, headquartered in Israel, is the global prime distributor of Motorola for the IRRInet remote control solutions serving its customers worldwide through its subsidiaries and a global network of local distributers and representatives. It utilizes over 25 years of experience in providing its customers with remote control and management systems which ensure constant, reliable and accurate water usage, while reducing operational costs and maintenance costly expenses. Mottech's activities are focused in the market segments of agriculture, water distribution, Municipal and Commercial Landscape and Wastewater and Storm water Reuse.
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Revenues
6,211
5,253
23,276
Cost of sales
3,754
3,472
14,728
Gross profit
2,457
1,781
8,548
Research and development expenses
249
322
1,079
Distribution expenses
948
918
3,346
General and administrative expenses
814
630
2,640
Profit (loss) from operations
446
(89)
1,483
Finance expense
220
148
334
Finance income
7
21
57
Profit (loss) before income tax
233
(216)
1,206
Income tax expense
13
(60)
222
Profit (loss)
246
(156)
984
Other comprehensive income (loss)net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans
-
-
(16)
-
-
(16)
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign operations
242
261
121
242
261
121
Total other comprehensive income
242
261
105
Total comprehensive income
488
105
1,089
Profit (loss)Attributable to:
Owners of the parent
224
(501)
936
Non-controlling interest
22
(6)
48
246
(156)
984
Total comprehensive income (loss)Attributable to:
Owners of the parent
466
111
1,041
Non-controlling interest
22
(6)
48
488
105
1,089
Earnings (losses)per share(dollars)
Basic
0.0043
(0.0029)
0.0181
Diluted
0.0042
(0.0029)
0.0178
Weighted average number of shares outstanding
Basic
51,837,468
51,580,836
51,687,853
Diluted
52,679,854
52,664,393
52,575,593
INTERIM CONSOLIDATEDSTATEMENT OF
CHANGES IN EQUITY
For the three months period ended March 31, 2017:
Attributed to owners of the parent
Share capital
Additional paid-in capital
Capital Reserve
for share-based
payment
transactions
Adjustment arising from translation of financial statements of foreign operations
Retained earnings
Total attributable to owners of the parent
Non-controlling interest
Total equity
U.S. $ in thousands
Balance at January 1, 2017 (Audited)
109
14,964
323
44
3,468
18,908
324
19,232
Changes during the three months
ended March 31, 2017 (Unaudited):
Comprehensive income
Profit for the period
-
-
-
-
224
224
22
246
Other comprehensive income
Translation differences
-
-
-
242
-
242
-
242
Total comprehensive income for the period
-
-
-
242
224
466
22
488
Exercise of options to share capital
*
7
(*)
-
-
7
-
7
Share based payment
-
-
7
-
-
7
-
7
Balance at March 31, 2017 (Unaudited)
109
14,971
330
286
3,692
19,388
346
19,734
(*) less than 1 thousand dollar
INTERIM CONSOLIDATEDSTATEMENT OF
CHANGES IN EQUITY
For the three months period ended March 31, 2016:
Attributed to owners of the parent
Share capital
Additional paid-in capital
Capital Reserve
for share-based
payment
transactions
Adjustment arising from translation of financial statements of foreign operations
Retained earnings
Total attributable to owners of the parent
Non-controlling interest
Total equity
U.S. $ in thousands
Balance at January 1, 2016 (Audited)
109
14,945
304
(77)
3,116
18,397
266
18,663
Changes during the three months
ended March 31, 2016 (Unaudited):
Comprehensive income
Loss for the period
-
-
-
-
(150)
(150)
(6)
(156)
Other comprehensive income
Translation differences
-
-
-
261
-
261
-
261
Total comprehensive income for the period
-
-
-
261
(150)
111
(6)
105
Share issuance to non-controlling interests in subsidiary
-
(10)
-
-
-
(10)
10
-
Exercise of options to share capital
-
6
(1)
-
-
5
-
5
Share based payment
-
-
2
-
-
2
-
2
Balance at March 31, 2016 (Unaudited)
109
14,941
305
184
2,966
18,505
270
18,775
INTERIM CONSOLIDATEDSTATEMENT OF
CHANGES IN EQUITY
For the year ended December 31, 2016 :
Attributable to owners of the parent
Share capital
Additional paid-in capital
Capital Reserve from share-based payment transactions
Adjustment arising from translation of financial statements of foreign operations
Retained earnings
Total attributable to owners of the parent
Non-controlling interest
Total equity
U.S. $ in thousands
Audited
Balance as at January 1, 2016
109
14,945
304
(77)
3,116
18,397
266
18,663
Changes during 2016:
Comprehensive income
Profit for the year
-
-
-
-
936
936
48
984
Other comprehensive income
Re measurements on defined benefit plans
-
-
-
-
(16)
(16)
-
(16)
Translation differences
-
-
-
121
-
121
-
121
Total comprehensive income for the year
-
-
-
121
920
1,041
48
1,089
Share issuance to non-controlling interest in subsidiary
-
(10)
-
-
-
(10)
10
-
Exercise of options to share capital
*
29
(1)
-
-
28
-
28
Dividend paid
-
-
-
-
(568)
(568)
-
(568)
Share based payment
-
-
20
-
-
20
-
20
Balance as at December 31, 2016
109
14,964
323
44
3,468
18,908
324
19,232
(*) less than 1 thousand dollar
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
31.03.2017
31.03.2016
31.12.2016
U.S. $ in thousands
Unaudited
Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
4,926
3,144
4,428
Other current financial assets
-
2,109
-
Trade receivables
9,122
7,751
8,159
Other receivables
630
879
706
Currenttax receivables
540
183
455
Inventories
4,151
3,950
4,910
19,369
18,016
18,658
NON-CURRENT ASSETS:
Long term prepaid expenses
39
36
48
Property, plant and equipment
5,340
5,578
5,453
Investment property
625
646
630
Deferred tax assets
597
502
500
Intangible assets
294
402
321
Goodwill
573
573
573
7,468
7,737
7,525
Total assets
26,837
25,753
26,183
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
31.03.2017
31.03.2016
31.12.2016
U.S. $ In thousands
Unaudited
Audited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans
994
812
802
Trade payables
2,036
1,648
2,285
Other accounts payables
2,071
1,620
1,792
Currenttax payables
56
194
3
5,157
4,274
4,882
NON- CURRENTLIABILITIES:
Loans from banks, net of current maturities
1,505
2,209
1,664
Employee benefits
441
403
405
Other liabilities
-
92
-
1,946
2,704
2,069
Total liabilities
7,103
6,978
6,951
EQUITY
Equity attributable to owners of the parent
Share capital
109
109
109
Additional paid-in capital
14,971
14,941
14,964
Capital reserve from share-based payment transactions
330
305
323
Translation differences
286
184
44
Retained earnings
3,692
2,966
3,468
19,388
18,505
18,908
Non-controlling interest
346
270
324
Total equity
19,734
18,775
19,232
Total equity and liabilities
26,837
25,753
26,183
May 9, 2017
Date of approval of financial statements
Moshe Borovitz
Finance Director
Dov Feiner
Chief Executive Officer
Zvi Borovitz
Non-executive Chairman
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Cash Flows from Operating Activities:
Profit(loss)for the period
246
(156)
984
Adjustments for:
Depreciation and amortization
164
162
635
Loss (gain) from investments in financial assets
77
39
(57)
Equity settled share-based payment expense
7
2
20
Finance expenses, net
28
32
122
Income tax expense (benefit)
(13)
(60)
222
Changes in operating assets and liabilities:
Decrease (increase) in inventories
870
481
(466)
Decrease (increase) in trade receivables
(839)
579
19
Decrease in other accounts receivables and prepaid expenses
121
410
572
Increase (decrease) in trade and other accounts payables
(51)
(620)
105
Increase in employee benefits, net
35
16
2
Interest paid
(28)
(32)
(122)
Income taxpaid
(114)
(92)
(837)
Net cash provided by operating activities
503
761
1,199
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Cash Flows From Investing Activities:
Sale of investments in financial assets, net
-
-
2,142
Purchase of property, plant and equipment
(8)
(46)
(314)
Net cash provided by (used in) investing activities
(8)
(46)
1,828
Cash Flows From Financing Activities:
Exercise of share options
7
5
28
Dividend paid to the owners of the parent
-
-
(568)
Short term loan received from banks
166
-
-
Long term loan received from banks
-
-
87
Repayment of long-term loan from banks
(210)
(214)
(793)
Net cash used in financing activities
(37)
(209)
(1,246)
Increase in cash and
cash equivalents during the period
458
506
1,781
Cash and cash equivalents
at the beginning of the period
4,428
2,634
2,634
Exchange differences on balances of cash and
cash equivalents
40
4
13
Cash and cash equivalents
at the end of the period
4,926
3,144
4,428
Appendix A - Non-cash transactions:
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Purchase of property, plant and equipment
against trade payables
6
22
5
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General:
Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company") is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998 as a wholly- owned subsidiary of M.T.I Computers and Software Services (1982) Ltd. (hereafter - the "Parent Company"), commenced operations on July 1, 2000 andsince March 2006, the Company's shares have been traded on the AIM market of the London Stock Exchange.
The formal address of the company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.
The Company is engaged in the development, design, manufacture and marketing of antennas and accessories.
Via its subsidiary, Mottech Water solutions Ltd., the Company is also a leading provider of remote control solutions for water and irrigation applications based on Motorola IRRInet state of the art control, monitoring and communication technologies.
Note 2 - Significant Accounting Policies:
The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").
The interim consolidated financial information set out above does not constitute full year end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2016 was approved by the board on February 15, 2017. The report of the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of March 31, 2017 have not been audited.
The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2016 and for the year then ended and with the notes thereto, The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2016 are applied consistently in these interim consolidated financial statements.
Note 3 - operating SEGMENTS:
The following tables present revenue and profit information regarding the Group's operating segments for the three months ended March 31, 2017 and 2016, respectively and for the year ended December 31, 2016.
Three monthsended March 31, 2017(Unaudited)
Antennas
Water Solutions
Total
U.S. $ in thousands
Revenue
External
3,129
3,082
6,211
Total
3,129
3,082
6,211
Segment income
166
280
446
Finance expense, net
(213)
Profit before income tax
233
Other
Depreciation and amortization
147
17
164
Three monthsended March 31, 2016(Unaudited)
Antennas
Water Solutions
Total
U.S. $ in thousands
Revenue
External
2,321
2,932
5,253
Total
2,321
2,932
5,253
Segment income (loss)
(400)
311
(89)
Finance expense, net
(127)
Loss before income tax
(216)
Other
Depreciation and other non-cash expenses
150
12
162
Year ended December 31, 2016 (audited)
Antennas
Water Solutions
Total
U.S. $ in thousands
Revenue
External
11,427
11,849
23,276
Total
11,427
11,849
23,276
Segment profit (loss)
(108)
1,591
1,483
Unallocated corporate expenses
Finance expense, net
(277)
Profit before income tax
1,206
Other
Depreciation and amortization
591
44
635
Note 4-TRANSACTIONS AND BALANCES WITH RELATED PARTIES:
The following transactions occurred with The Parent Company and other related parties:
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Purchased Goods
60
34
369
Management Fee
116
94
428
Services Fee
65
62
249
Leaseincome
(18)
(18)
(72)
Compensation of key management personnel of the Group:
Three months ended
March 31,
Year ended December 31,
2017
2016
2016
U.S. $ in thousands
Unaudited
Audited
Short-term employee benefits *)
201
178
810
*) Including Management fees for the CEO, Directors Executive Management and other related parties
All Transactions are made at market value.
Balances with related parties:
As at
31.03.2017
31.03.2016
31.12.2016
U.S. $ in thousands
Unaudited
Audited
Other receivables (Other accounts payables)
(243)
108
(207)
Note 5 - SIGNIFICANT EVENTS:
During January 2017, an employee exercised options over 60,000 shares in exchange for a consideration of approximately of $7,000.
Note 6 - SUBSEQUENT EVENTS:
On April 4, 2017 the company paid a dividend of 1 cent per share totaling approximately $236,000 and in addition 1,022,328 new ordinary shares were issued to qualifying shareholders that chose the scrip dividend alternative.
This information is provided by RNSThe company news service from the London Stock ExchangeENDQRFBRGDUXBGBGRC
Recent news on MTI Wireless Edge
See all newsRCS - MTI Wireless Edge - MTI nominated for Dividend Hero of the Year award
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
AnnouncementREG - MTI Wireless Edge - Transaction in Own Shares
Announcement