REG - MTI Wireless Edge - Half Yearly Report <Origin Href="QuoteRef">MWEE.L</Origin>
06/09/2014 22:41
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RNS Number : 7118N
MTI Wireless Edge Limited
31 July 2014
31 July 2014
MTI Wireless Edge Ltd
("MTI" or the "Company")
Financial results for the six months ended 30 June 2014
MTI Wireless Edge Ltd., (MWE) ("MTI" or the "Company"), a market leader in the
manufacture of flat panel antennas for fixed wireless broadband, today
announces its unaudited results for the six months ended 30 June 2014.
Highlights
· Continued improvement in revenue, gross margin rate, operational and net
profit.
· Revenue increased by 5% to US$7.1m (H1 2013: US$6.8m).
· Gross profit increased by 14% to US$2.8m (H1 2013: US$2.4m).
· Operational profit increased 230% to US$202,000 (H1 2013: US$61,000).
· Net profit of US$249,000 (H1 2013: US$73,000).
· Shareholder's equity of US$17.7m, similar to December 31, 2013,
equivalent to 20.1 pence per share.
Dov Feiner, Chief Executive Officer, commented:
"I am pleased to announce that during the first half of 2014 the Company
continued to improve both its margins and profits. This healthy progress was
accompanied by strong cash generation. This resulted with the Company's first
half operational profits exceeding those generated during the whole of 2013.
"We continue to see strong demand for our 80GHz products and in the first half
of 2014 our revenue from this product line was greater than for the full year
2013. Current order backlog remains strong and we expect to show a
substantial increase in revenues from this product line during this year.
"We have made good progress in the first half of 2014 and the Board is
confident that this trend will continue for the rest of the year. The Board is
encouraged that the outlook for the Group remains positive."
For further information please contact:
MTI Wireless EdgeDov Feiner, CEOMoni Borovitz, Financial Director http://www.mtiwe.com/+972 3 900 8900
Allenby Capital Limited (Nominated adviser and broker)Nick NaylorAlex Price +44 20 3328 5656
Newgate Threadneedle (Financial PR)Josh RoystonRobyn McConnachie +44 207 653 9850
About MTI Wireless Edge
MTI is engaged in the development, production and marketing of High Quality,
Low Cost, Flat Panel Antennas for Commercial & for Military applications.
Commercial applications such as: WiMAX, Wireless Networking, RFID readers &,
Broadband Wireless Access. With over 40 years experience, 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 includes 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.
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Revenues 7,125 6,809 13,422
Cost of sales 4,360 4,395 8,624
Gross profit 2,765 2,414 4,798
Research and development expenses 650 582 1,127
Distribution expenses 983 950 1,804
General and administrative expenses 930 821 1,677
Profit from operations 202 61 190
Finance expense 87 82 162
Finance income 66 18 58
Profit (loss) before income tax 181 (3) 86
Income tax benefit (68) (76) (340)
Profit or loss 249 73 426
Other comprehensive income (net of tax effect):
Items not to be reclassified to profit or loss in subsequent periods:
Re-measurement of defined benefit plans - - 18
Total comprehensive income 249 73 444
Profit or loss Attributable to:
Owners of the parent 242 49 388
Non-controlling interest 7 24 38
249 73 426
Total comprehensive income Attributable to:
Owners of the parent 242 49 406
Non-controlling interest 7 24 38
249 73 444
Earnings per share(dollars per share)
Basic andDiluted 0.0047 0.0010 0.0075
Weighted average number of shares outstanding
Basic and Diluted 51,571,990 51,571,990 51,571,990
0.0047
0.0010
0.0075
Weighted average number of shares outstanding
Basic and Diluted
51,571,990
51,571,990
51,571,990
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the Six months period ended June 30, 2014:
Attributed to owners of the parent
Share capital Additional paid-in capital Capital Reservefor share-basedpayment Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
transactions
U.S. $ in thousands
Balance at January 1, 2014 (Audited) 109 14,945 259 2,420 17,733 194 17,927
Changes during the Six months ended June 30, 2014 (Unaudited):
Comprehensive income (loss) for the period - - - 242 242 7 249
Dividend paid - - - (351) (351) - (351)
Share based payment - - 12 - 12 - 12
Balance at June 30, 2014 (Unaudited) 109 14,945 271 2,311 17,636 201 17,837
17,636
201
17,837
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the Six months period ended June 30, 2013:
Attributed to owners of the parent
Share capital Additional paid-in capital Capital Reservefor share-basedpayment Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
transactions
U.S. $ in thousands
Balance at January 1, 2013 (Audited) 109 14,945 220 2,313 17,587 156 17,743
Changes during the Six months period ended June 30, 2013 (Unaudited):
Comprehensive income for the period - - - 49 49 24 73
Dividend paid - - - (299) (299) - (299)
Share based payment - - 22 - 22 - 22
Balance at June 30, 2013 (Unaudited) 109 14,945 242 2,063 17,359 180 17,539
17,359
180
17,539
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended December 31, 2013:
Attributable to owners of the parent
Share capital Additional paid-in capital Capital Reservefor share-basedpayment Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
transactions
U.S. $ in thousands
Audited
Balance at January 1, 2013 109 14,945 220 2,313 17,587 156 17,743
Changes during 2013:
Income for the year - - - 388 388 38 426
Other comprehensive income - - - 18 18 - 18
Total comprehensive income for the year - - - 406 406 38 444
Dividend paid - - - (299) (299) - (299)
Share based payment - - 39 - 39 - 39
Balance at December 31, 2013 109 14,945 259 2,420 17,733 194 17,927
-
39
-
39
-
39
Balance at December 31, 2013
109
14,945
259
2,420
17,733
194
17,927
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
30.6.2014 30.6.2013 31.12.2013
U.S. $ in thousands
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,502 1,793 992
Other current financial assets 3,736 5,251 5,753
Trade receivables 5,051 4,203 5,359
Other receivables 844 832 548
Currenttax receivables 152 - 165
Inventories 3,133 2,949 3,091
15,418 15,028 15,908
NON-CURRENT ASSETS:
Long term prepaid expenses 24 34 39
Property, plant and equipment 5,312 5,403 5,343
Investment property 1,257 1,292 1,275
Deferred tax assets 308 225 226
Goodwill 406 406 406
7,307 7,360 7,289
Total assets 22,725 22,388 23,197
Total assets
22,725
22,388
23,197
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
30.6.2014 30.6.2013 31.12.2013
U.S. $ In thousands
Unaudited Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities and short term Loans 261 250 562
Trade payables 2,001 1,500 1,936
Other accounts payables 811 672 749
Currenttax payables - 277 -
3,073 2,699 3,247
NON- CURRENTLIABILITIES:
Loans from banks 1,465 1,688 1,595
Employee benefits 350 290 316
Provisions - 172 112
1,815 2,150 2,023
Total liabilities 4,888 4,849 5,270
EQUITY
Equity attributable to owners of the parent
Share capital 109 109 109
Additional paid-in capital 14,945 14,945 14,945
Capital reserve from share-based payment transactions 271 242 259
Retained earnings 2,311 2,063 2,420
17,636 17,359 17,733
Non-controlling interest 201 180 194
Total equity 17,837 17,539 17,927
Total equity and liabilities 22,725 22,388 23,197
Total equity and liabilities
22,725
22,388
23,197
July 30, 2014
Date of approval of financial statements Moshe Borovitz Finance Director Dov Feiner Chief Executive Officer Zvi Borovitz Non-executive Chairman
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Six months ended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Cash Flows from Operating Activities:
Profitfor the period 249 73 426
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 223 215 436
Loss (Gain) from short-term investments (5) 19 (29)
Equity settled share-based payment expense 12 22 39
Finance expenses, net 45 51 98
Income tax (68) (76) (340)
Changes in operating assets and liabilities:
Decrease in inventories (42) (2) (144)
Decrease (increase) in trade receivables 308 170 (986)
Increase in other accounts receivables and prepaid expenses (281) (301) (22)
Decrease in trade and other accounts payables 61 167 682
Increase in employee benefits, net 34 34 78
Decrease in provisions (112) - (60)
Interest paid (45) (51) (98)
Income tax received (paid) (1) 139 (40)
Net cash generated (used) in operating activities 378 460 40
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Six months ended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Cash Flows From Investing Activities:
Sale (purchase) of short-term investment, net 2,022 (2,767) (3,221)
Purchase of property, plant and equipment (108) (124) (270)
Net cash used in investing activities 1,914 (2,891) (3,491)
Cash Flows From Financing Activities:
Short term Loan received (paid) (301) - 301
Long term Loan received - - 43
Dividend paid to the owners of the parent (351) (299) (299)
Repayment of long-term loan from banks (130) (125) (250)
Net cash used in financing activities (782) (424) (205)
Increase (decrease) in cash and cash equivalents during the period 1,510 (2,855) (3,656)
Cash and cash equivalents at the beginning of the period 992 4,648 4,648
Cash and cash equivalents at the end of the period 2,502 1,793 992
2,502
1,793
992
Appendix A - Non-cash transactions:
Six months ended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Purchase of property and equipment against trade payables 71 7 5
The accompanying notes form an integral part of the financial statements.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General:
A. Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company") is an Israeli
corporation. It 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") and commenced
operations on July 1, 2000 and since March 2006 the Company's shares have been
traded on London's AIM Market.
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.
B. Foreign currencies:
Henceforth are the details of the main foreign currency information and the
changes in the exchange rate percentage in the reporting period:
June 30, December 31,
2014 2013 2013
NIS (in Dollar per 1 NIS) 0.291 0.276 0.288
0.276
0.288
Six months ended June 30, Year ended December 31,
2014 2013 2013
% % %
NIS (0.95) 3.18 7.55
NIS
(0.95)
3.18
7.55
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, 2013 was approved by the board on February 19, 2014. The
report of the auditors on those financial statements was unqualified. The
interim consolidated financial statements as of June 30, 2014 have not been
audited.
The interim consolidated financial information should be read in conjunction
with the annual financial statements as of 31 December, 2013 and for the year
ended on that date and with the notes thereto, The significant accounting
policies applied in the annual financial statements of the Company as of
December 31, 2013 are applied consistently in these interim consolidated
financial statements.
Note 3 - operating SEGMENTS:
The following table's present revenue and profit information regarding the
Company's operating segments for the six months ended June 30,2014 and 2013,
respectively and for the year ended December 31, 2013.
Six monthsended June 30, 2014 (Unaudited)
Commercial Military Total
$'000
Revenue
External 5,754 1,370 7,125
Total 5,754 1,370 7,125
Segment income 156 46 202
Finance expense, net (21)
Profit before income tax 181
Other
Depreciation and other non-cash expenses 197 26 223
26
223
Six monthsended June 30, 2013 (Unaudited)
Commercial Military Total
$'000
Revenue
External 5,466 1,343 6,809
Total 5,466 1,343 6,809
Segment income 17 44 61
Finance expenses, net 64
Loss before income tax (3)
Other
Depreciation and other non-cash expenses 188 27 215
27
215
Note 3- operating SEGMENTS (CONT.):
Yearended December 31, 2013 (audited)
Commercial Military Total
$'000
Revenue
External 10,069 3,353 13,422
Total 10,069 3,353 13,422
Segment income (loss) (32) 240 208
Unallocated corporate expenses
Unallocated expenses (18)
Finance expense, net (104)
Profit before income tax 86
Other
Depreciation and other non-cash expenses 368 68 436
68
436
Note 4 -TRANSACTIONS WITH RELATED PARTIES:
The Parent Company and other related parties provide certain services to the
Group as follows:
Six monthsended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Purchased Goods 152 170 322
Management Fee 201 154 334
Services Fee 104 95 190
Leaseincome (60) (60) (120)
Compensation of key management personnel of the Group:
Six monthsended June 30, Year ended December 31,
2014 2013 2013
U.S. $ in thousands
Unaudited Audited
Short-term employee benefits *) 366 305 673
*) Including Management fees for the CEO, Director executive management and
other related parties.
All Transactions are made at market value.
30.6.2014 30.6.2013 31.12.2013
U.S. $ In thousands
Unaudited Audited
Related parties 44 103 37
Note 5 - SIGNIFICANT EVENTS:
On April 4, 2014 the company paid a dividend of 0.68 cents per share totaling
approximately $351,000.
This information is provided by RNS
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