REG - MTI Wireless Edge - Interim Results
15/08/2023 07:00
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RNS Number : 2773J MTI Wireless Edge Limited 15 August 2023
15 August 2023
MTI Wireless Edge Ltd
("MTI", the "Company" or the "Group")
Interim results
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on
comprehensive communication and radio frequency solutions across multiple
sectors, is pleased to today announce its financial results for the six month
period ended 30 June 2023.
'Significant improvement in Operating Cashflow - a steady performance and on
track for the year'
Financial highlights
· Revenues broadly level at US$22.4m (H1 2022: US$22.7m), held back by
adverse currency translation. On a constant currency basis revenues
increased by 2%
· Gross margin improved 1% to 32% (H1 2022: 31%)
· Profit from operations level at US$2.19m (H1 2022: US$2.19m)
· Profit before tax increased 3% to US$2.1m (H1 2022: US$2.04m)
· Earnings per share increased 9% to 1.99 US cents (H1 2022: 1.83 US
cents)
· Net cash provided by operating activities improved significantly to
US$1.23m (H1 2022: US$0.037m)
· Strong financial position maintained, with an increase of 20% in net
cash at 30 June 2023 to $6.25m (30 June 2022: $5.18m)
Operational highlights
· The Antenna division benefitted from increased defence sales and this
is expected to continue into the second half of the year and beyond. This
helped offset a softer commercial market and, overall, the division grew
revenues by 3% and this segment's profit from operations increased
significantly.
· The 5G market opportunity for MTI remains substantial, albeit
progress is slow. Relationships with the leading OEMs in the sector are
deepening alongside growing interest in the Company's ABS® antenna solution
to counter small mast movements
· Mottech experienced a relatively quiet first half resulting in a 2%
decrease in revenue, mainly due to adverse currency translation, but the
segment's profit from operations increased reflecting the updated pricing in
its renewed agreements and foreign exchange benefits on export. In Q3 2023
trading has started well and Mottech's pipeline looks positive with Italy and
France, in particular, performing well
· MTI Summit delivered a solid performance, although sales were 5%
behind the same period last year. This was due to delays on two key projects
being undertaken by the Group's subsidiary in the defence sector, PSK, which
have now moved into the second half of the year. One of these projects is now
completed and the second is underway. The segments profit from operations
decreased reflecting the shift in revenues, due to these two projects
Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:
"Our strategy of diversification continues to support the overall positive
performance of the business. We are a technology company providing radio
frequency solutions but we do so across multiple sectors where we see
significant long-term demand such as defence spending, modern water irrigation
and the global rollout of the next generation 5G mobile network.
"Being a diverse technology company enables us to adapt to changing market
conditions. To date in 2023, defence related orders are currently the fastest
growing segment of our business and this trend is expected to continue for
some time.
"The results for the first half were held back at the revenue level by the
strength of the dollar against the shekel but we also benefitted from this
movement, together with successful price increases, at the cost level
improving gross margin and ultimately helping earnings per share to increase
by 9% in the period. While the commercial market is still challenging, the
supply issues experienced last year have dissipated and, with a strong
pipeline of opportunities, we remain confident in the growth prospects for the
business and the outcome for the year".
Moni Borovitz, Chief Executive Officer, will provide a live investor
presentation relating to the financial results via the Investor Meet Company
(IMC) platform on Tuesday, 15 August 2023 at 10.00am BST.
Investors can sign up for free via:
https://www.investormeetcompany.com/mti-wireless-edge-ltd/register-investor
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For further information please contact:
MTI Wireless Edge Ltd +972 3 900 8900
Moni Borovitz, CEO http://www.mtiwirelessedge.com
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Allenby Capital Limited (Nomad and Joint Broker) +44 20 3328 5656
Nick Naylor/Alex Brearley/Piers Shimwell (Corporate Finance)
Amrit Nahal/Jos Pinnington (Sales and Corporate Broking)
Shore Capital (Joint Broker) +44 20 7408 4090
Toby Gibbs/Rachel Goldstein (Corporate Advisory)
Fiona Conroy (Corporate Broking)
Novella (Financial PR)
Tim Robertson/Safia Colebrook +44 20 3151 7008
Chief Executive's statement
The half year performance is particularly pleasing given the rapid upward
interest rate movements during the period which has increased macro-economic
volatility and brought some caution into the Group's market. That said, the
conflict in Ukraine has meant defence budgets around the world are increasing
and this started to be reflected in the Company's first half trading results
and will be a key growth driver in the second half of the year and beyond. As
a result, while Mottech and some commercial business lines were softer during
Q2 2023, demand from defence related orders and the pipeline of opportunities
mean we remain in a good position to complete a successful year, underlining
the benefit of being a diverse business targeting multiple growth sectors.
Antenna division
This division is a one stop shop for the sale of 'off the shelf' flat and
parabolic antennas, combined with the provision of custom-developed antenna
solutions to a range of commercial and military customers, with a growing
focus on providing 5G backhaul antenna solutions to support mobile phone
operators as they roll-out their 5G networks.
The Antenna division had a positive first half of the year with revenue and
profit growth. Increasing defence spending was behind the growth in this
division, with orders coming from around the globe and we expect further
orders to come through in the second half of the year. The conflict in Ukraine
has meant Governments are increasing defence budgets and MTI is now seeing
increased spending from its customers in the military sector. The Group's
expertise in military antennas is well-established and new orders are a mix of
existing product lines and requests for new solutions, across both existing
and new customers.
5G also remains a substantial driver of future growth. In the first half of
the year the market was relatively soft as some cellular operators were more
cautious, in some cases slowing the pace of installation, reflecting the
macroeconomic environment. However, 5G is being installed worldwide and MTI is
well placed to benefit. The ABS® antenna solution which ensures the antenna
adapts to any small movements caused by different climate conditions, has
brought MTI to the attention of three tier one radio manufacturers and two
tier two customers, all of whom are working with MTI to prove-out the
Company's system. This interaction further positions the division positively
and significantly increases the sales prospects for the 5G backhaul solution.
Last year saw the opening of the Indian market for E-Band 5G backhaul. As
anticipated, activity in India remains high and, although orders are sporadic,
the size of the market and MTI's position within it bodes well. To that end,
in July 2023, the Company established a new subsidiary in India, 'MTI Wireless
Communication India Private Limited', to cater to the demand for cutting-edge
antennas in India's evolving 5G cellular market.
Water Control & Management division
This division provides wireless control systems to manage irrigation and water
distribution for agriculture, municipal authorities and commercial entities.
It operates under the Mottech brand and utilises hardware technology from
Motorola, integrated with the Company's own proprietary management software.
Our solutions reduce water and power usage, whilst providing higher revenues
from accurate efficient irrigation, leading to more and higher quality crops
and plants being grown.
Mottech experienced a slightly softer market in Q2 2023, partially due to the
sharp strengthening of the dollar against the shekel, which reduced the
reported USD revenue but, due to costs being in shekels gross margin increased
and operating profits were correspondingly higher in the first half of the
year. Part of this was due to the division's successful introduction of price
increases that have been implemented in 2022 and in 2023. As announced on 19
April 2023, Mottech secured two long-term contract wins with a large Israeli
municipality. The municipality is an existing customer and has agreed longer
than previous contracts. The two contracts are together worth $2.2million over
the contracted periods with one covering installations and the other provision
of services.
During the first half, Mottech generated good demand from Italy and started
the third quarter with good demand from France, with the pipeline for both
these markets looking encouraging and building on the positive performances in
2022.
Importantly, the fundamentals for this division remain strong, with the
problem of water scarcity remaining a key global issue; one which Governments
are increasingly recognising. Earlier this year, for the first time in almost
50 years, the United Nations
(https://url.avanan.click/v2/___https:/www.theguardian.com/world/unitednations___.YXAxZTpzaG9yZWNhcDphOm86ZTg1MmJmN2M1NDcwZjlkNjM0YjRhZjgyZDllNGQ2YjU6NjoyNjdjOjY0NzJiMDBiZWY5MDgxODNkMTRhMzA0MjhmY2ZkYzQ1ODYxYTc4OTZjYzc1M2FiNzMzYmQ4ZWIwYzQ0M2ZhN2U6cDpU)
held its first water conference in New York, with a plea for countries to work
together to tackle overconsumption, inefficient industrial usage and the
climate crisis - or else face more hunger, conflicts and forced migration due
to worsening water scarcity. Water scarcity is a very real crisis involving
both developed and underdeveloped countries. There are multiple solutions, but
a key response is to incorporate modern technology, such as that deployed by
Mottech, to dramatically reduce water usage and the associated costs.
Overall, Mottech is well placed to deliver another positive result for the
year.
Distribution & Professional Consulting Services division
Operating under the MTI Summit Electronics brand, this division exclusively
represents approximately 40 international suppliers of radio
frequency/microwave components and sells their products to Israeli customers.
Expert knowledge of both the international suppliers and customers further
enables MTI to act as a consultant to all parties and assist with devising
complete radio frequency/microwave solutions.
MTI Summit delivered a resilient performance despite revenues being 5% lower
than the comparable period last year, mainly due to delays with two projects.
Both projects were being undertaken by PSK. One of the projects has now been
completed and the second is now underway with good prospects to be expanded
further. Defence represents the majority of the revenue base for MTI Summit
and it is benefitting from the current significant increase in military spend
by Governments around the globe. The conflict in Ukraine has been the catalyst
behind this increase and judging from the future pipeline of orders and design
wins, the outlook for MTI Summit is positive.
Outlook
The first six months ended successfully which has positioned the business well
for the remainder of the year. We have a significant order book and pipeline
of opportunities across all three divisions and the business remains in a
strong financial position, with net cash of USD $6.25million. We expect
defence related sales to continue to be a growth driver, alongside improved
commercial sales as interest rate levels normalise. Finally, we firmly
believe that there will be a step increase in our revenues from 5G in the
coming years. Therefore MTI is well placed to grow and deliver attractive
returns to shareholders.
About MTI Wireless Edge Ltd. ("MTI")
Headquartered in Israel, MTI is a technology group focused on comprehensive
communication and radio frequency solutions across multiple sectors through
three core divisions:
Antenna division
MTI is a world leader in the design, development and production of high
quality, state-of-the-art, and cost-effective antenna solutions including
Smart Antennas, MIMO Antennas and Dual Polarity Antennas for wireless
applications. MTI supplies antennas for both military and commercial markets
from 100 KHz to 174 GHz.
Internationally recognized as a producer of commercial off-the-Shelf and
custom-developed antenna solutions in a broad frequency range, MTI addresses
both commercial and military applications.
MTI supplies directional and omnidirectional antennas for outdoor and indoor
deployments, including smart antennas for 5G backhaul, Broadband access,
public safety, RFID, base station and terminals for the utility market.
Military applications include a wide range of broadband, tactical and
specialized communication antennas, antenna systems and DF arrays installed on
numerous airborne, ground and naval, including submarine, platforms worldwide.
Water Control & Management division
Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI provides
high-end remote control and monitoring solutions for water and irrigation
applications based on Motorola's IRRInet state-of-the-art control, monitoring
and communication technologies.
As Motorola's global prime-distributor Mottech serves its customers worldwide
through its international subsidiaries and a global network of local
distributors and representatives. With over 25 years of experience in
providing customers with irrigation remote control and management, Mottech's
solutions ensure constant, reliable and accurate water usage, increase crops
quality and yield while reducing operational and maintenance costs providing
fast ROI while helping sustain the environment. Mottech's activities are
focused in the market segments of agriculture, water distribution, municipal
and commercial landscape as well as wastewater and storm-water reuse.
Distribution & Professional Consulting Services division
Via its subsidiary, MTI Summit Electronics Ltd., MTI offers consulting,
representation and marketing services to foreign companies in the field of RF
and Microwave solutions and applications including engineering services
(including design and integration) in the field of aerostat systems and the
ongoing operation of Platform subsystems, SIGINT, RADAR, communication and
observation systems which is performed by the Company. It also specializes in
the development, manufacture and integration of communication systems and
advanced monitoring and control systems for the Government and defence
industry market.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
Six month period ended Year ended December 31,
June 30,
2023 2022 2022
U.S. $ in thousands
(Except per share data)
Unaudited
Revenues 22,354 22,693 46,270
Cost of sales 15,156 15,651 31,680
Gross profit 7,198 7,042 14,590
Research and development expenses 546 528 1,077
Distribution expenses 1,930 1,815 3,924
General and administrative expenses 2,537 2,501 4,998
Loss (profit) from sale of property, plant and equipment (9) 8 1
Profit from operations 2,194 2,190 4,592
Finance expenses 182 221 385
Finance income (85) (72) (110)
Profit before income tax 2,097 2,041 4,317
Tax expenses 392 364 468
Profit 1,705 1,677 3,849
Other comprehensive income (loss) net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans - - 127
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign (165) (345) (422)
operations
Total other comprehensive income (loss) (165) (345) (295)
Total comprehensive income 1,540 1,272 3,554
Profit attributable to:
Owners of the parent 1,761 1,617 3,721
Non-controlling interests (56) 60 128
1,705 1,677 3,849
Total comprehensive income attributable to:
Owners of the parent 1,596 1,212 3,426
Non-controlling interests (56) 60 128
1,540 1,272 3,554
Earnings per share (dollars)
Basic and Diluted (dollars per share) 0.0199 0.0183 0.0421
Weighted average number of shares outstanding
Basic and Diluted 88,398,585 88,520,113 88,444,356
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
For the six month period ended June 30, 2023 (Unaudited):
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
U.S. $ in thousands
Balance at January 1, 2023 209 23,078 (250) 3,775 26,812 1,226 28,038
Changes during the six month period
ended June 30, 2023:
Comprehensive income
Profit for the period - - - 1,761 1,761 (56) 1,705
Other comprehensive income
Translation differences - - (165) - (165) - (165)
Total comprehensive income for the period - - (165) 1,761 1,596 (56) 1,540
Acquisition and disposal of treasury shares * (47) - - (47) - (47)
Dividend - - - (2,656) (2,656) - (2,656)
Balance at June 30, 2023 209 23,031 (415) 2,880 25,705 1,170 26,875
(*) Less than US$ 1 thousand
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the six month period ended June 30, 2022 (Unaudited):
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interest Total equity
U.S. $ in thousands
Balance at January 1, 2022 209 23,126 172 2,406 25,913 1,098 27,011
Changes during the six-month period
ended June 30, 2022:
Comprehensive income
Profit for the period - - - 1,617 1,617 60 1,677
Other comprehensive income
Translation differences - - (345) - (345) - (345)
Total comprehensive income for the period - - (345) 1,617 1,272 1,158 1,332
Acquisition and disposal of treasury shares - 41 - - 41 - 41
Dividend - - - (2,479) (2,479) - (2,479)
Balance at June 30, 2022 209 23,167 (173) 1,544 24,747 1,158 25,905
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (CONT.)
For the year ended December 31, 2022 :
Attributable to owners of the parent
Share capital Additional paid-in capital Translation differences Retained earnings Total attributable to owners of the parent Non-controlling interests Total equity
U.S. $ in thousands
Balance as at January 1, 2022 209 23,126 172 2,406 25,913 1,098 27,011
Changes during 2022:
Comprehensive income
Profit for the year - - - 3,721 3,721 128 3,849
Other comprehensive income
Re measurements on defined benefit plans - - - 127 127 - 127
Translation differences - - (422) - (422) - (422)
Total comprehensive income (loss) for the year - - (422) 3,848 3,426 128 3,554
Dividend - - - (2,479) (2,479) - (2,479)
Acquisition and disposal of treasury shares - (48) - - (48) - (48)
Balance as at December 31, 2022 209 23,078 (250) 3,775 26,812 1,226 28,038
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.06.2023 30.06.2022 31.12.2022
U.S. $ in thousands
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 6,384 5,368 8,279
Trade and other receivables 9,603 11,497 11,035
Unbilled revenue 4,518 3,535 2,204
Current tax receivables 466 462 549
Inventories 7,439 6,457 7,757
28,410 27,319 29,824
NON-CURRENT ASSETS:
Long term prepaid expenses 42 44 39
Property, plant and equipment 5,133 5,989 5,573
Deferred tax assets 1,172 1,140 1,163
Intangible assets 3,779 3,989 3,858
10,126 11,162 10,633
Total assets 38,536 38,481 40,457
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
30.06.2023 30.06.2022 31.12.2022
U.S. $ In thousands
Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans 56 179 43
Trade payables 5,222 5,703 5,739
Other accounts payable 3,503 3,443 3,627
Current tax payables 499 440 425
9,280 9,765 9,834
NON- CURRENT LIABILITIES:
Liability to purchase shares of subsidiary 1,432 1,432 1,432
Lease liabilities 129 512 303
Loans from banks, net of current maturities 76 8 98
Employee benefits, net 744 859 752
2,381 2,811 2,585
Total liabilities 11,661 12,576 12,419
EQUITY
Equity attributable to owners of the parent
Share capital 209 209 209
Additional paid-in capital 23,031 23,167 23,078
Translation differences (415) (173) (250)
Retained earnings 2,880 1,544 3,775
25,705 24,747 26,812
Non-controlling interest 1,170 1,158 1,226
Total equity 26,875 25,905 28,038
Total equity and liabilities 38,536 38,481 40,457
August 14, 2023
Date of approval of financial statements Moshe Borovitz Elhanan Zeira Zvi Borovitz
Chief Executive Officer Controller Non-executive Chairman of the Board
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Six month period ended Year ended December 31,
June 30,
2023 2022 2022
U.S. $ in thousands
Unaudited
Cash Flows from Operating Activities:
Profit for the period 1,705 1,677 3,849
Adjustments for:
Depreciation and amortization 651 734 1,466
Loss (Gain) from sale of property, plant and equipment (2) 8 (1)
Finance (income) expenses, net (50) (80) (82)
Tax expenses 392 364 468
Changes in operating assets and liabilities:
Decrease (increase) in inventories 225 270 (951)
Decrease (increase) in trade receivables 519 (634) (63)
Decrease (increase) in other accounts receivables 748 (133) 590
Increase in unbilled revenues (2,314) (741) (1,134)
Increase (decrease) in trade and other accounts payables (389) (659) 572
Increase (decrease) in employee benefits, net (8) (113) (93)
Cash from operations 1,477 693 4,621
Interest received 20 - -
Interest paid (17) (29) (52)
Income tax paid (249) (627) (978)
Net cash provided by operating activities 1,231 37 3,591
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Six month period ended Year ended December 31,
June 30,
2023 2022 2022
U.S. $ in thousands
Unaudited
Cash Flows From Investing Activities:
Proceeds from sale of property, plant and equipment 39 - 15
Acquisition of subsidiary, net of cash acquired - (1,427) (1,427)
Net cash from sale of previously consolidated subsidiaries - (2,785) (2,785)
Purchase of property, plant and equipment (183) (324) (552)
Net cash used in investing activities (144) (4,536) (4,749)
Cash Flows From Financing Activities:
Dividend (2,656) (2,479) (2,479)
Payments of lease liabilities (224) (293) (560)
Treasury shares acquired (200) - (118)
Treasury shares sold 153 41 70
long-term loans from banks (3) 157 118
Net cash used in financing activities (2,930) (2,574) (2,969)
(Decrease)/Increase in cash and (1,843) (7,073) (4,127)
cash equivalents during the period
Cash and cash equivalents 8,279 12,567 12,567
at the beginning of the period
Exchange differences on balances of cash and (52) (126) (161)
cash equivalents
Cash and cash equivalents 6,384 5,368 8,279
at the end of the period
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General:
Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company", or collectively with its
subsidiaries, the "Group") is an Israeli corporation. The Company was
incorporated under the Companies Act in Israel on December 30, 1998 and
commenced operations on July 1, 2000. Since 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 and its subsidiaries are engaged in the following areas:
- Development, design, manufacture and marketing of antennas for the
military and civilian sectors.
- 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.
- Providing consulting, representation and marketing services to
foreign companies in the field of RF (radio frequency) and Microwave,
including engineering services in the field of aerostat systems and system
engineering services.
- Development, manufacture and integration of communication systems
and advanced monitoring and control systems for the Government and defence
industry market.
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). The financial information for the financial year ended
December 31, 2022 was approved by the board on March 12, 2023. The report of
the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of June 30, 2023 have not
been audited.
The interim consolidated financial information should be read in conjunction
with the annual financial statements as of December 31, 2022 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,
2022 are applied consistently in these interim consolidated financial
statements.
Note 3 - REVENUES:
Six month period ended Year ended December 31,
June 30,
2023 2022 2022
U.S. $ in thousands
Unaudited
Revenues arise from:
Sale of goods* 15,722 17,486 34,618
Rendering of services** 3,126 3,498 8,334
Projects** 3,686 1,709 3,318
22,354 22,693 46,270
(*) at the point in time
(**) over time
Note 4 - operating SEGMENTS:
The following tables present revenue and profit information regarding the
Group's operating segments for the six month period ended June 30, 2023 and
2022 respectively and for the year ended December 31, 2022.
Six month period ended June 30, 2023 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 5,821 8,656 7,877 - 22,354
Internal - - 134 (134) -
Total 5,821 8,656 8,011 (134) 22,354
Segment profit (loss) 281 960 784 169 2,194
Finance expense (income), net 97
Tax expenses 392
Profit 1,705
June 30, 2023 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,317 10,194 11,578 - 36,089
Unallocated assets 2,447
Segment liabilities 3,414 2,946 4,814 - 11,174
Unallocated liabilities 487
Note 4 - operating SEGMENTS (CONT.):
Six month period ended June 30, 2022 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 5,678 8,825 8,190 - 22,693
Internal - - 209 (209) -
Total 5,678 8,825 8,399 (209) 22,693
Segment profit 95 864 1,144 87 2,190
Finance expense, net 149
Tax expenses 364
Profit 1,677
June 30, 2022 (Unaudited):
Antennas Water Solutions Distribution & Consultation Services Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,414 10,717 10,538 - 35,669
Unallocated assets 2,812
Segment liabilities 2,241 3,520 6,294 - 12,055
Unallocated liabilities 521
Year ended December 31, 2022
Antennas Water Solutions Distribution & Consultation Adjustment & Elimination Total
U.S. $ in thousands
Revenues
External 11,627 18,196 16,447 - 46,270
Inter-segment - - 215 (215) -
Total 11,627 18,196 16,662 (215) 46,270
Segment profit 337 1,838 2,321 96 4,592
Finance expense, net 275
Tax expenses 468
Profit 3,849
Note 4 - operating SEGMENTS (CONT.):
December 31, 2022:
Antennas Water Solutions Distribution & Consultation Adjustment & Elimination Total
U.S. $ in thousands
Segment assets 14,848 11,834 11,272 - 37,954
Unallocated assets 2,503
Segment liabilities 2,627 3,881 5,098 - 11,606
Unallocated liabilities 813
Note 5 - SIGNIFICANT EVENTS:
A. On March 12, 2023, the Board of directors declared a cash dividend of 3.0
US cents per share, representing approximately $2,656,000, in total. This
dividend was paid on April 6, 2023 to shareholders on the register at the
close of trading on March 24, 2023 (ex-dividend on March 23, 2023).
B. On 24 January, 2019, the Company announced a share repurchase program
to conduct market purchases of ordinary shares of par value 0.01 Israeli
Shekels each ("Ordinary Shares") in the Company up to a maximum value of
£150,000 (the "Programme"). Thereafter, the board of directors of the Company
and the board of directors of MTI Engineering decided to continue with the
Programme for several further periods. On 14 March, 2023, the Company
announced that it would extend the Programme until 31 March, 2024, with the
Programme having an increased maximum value of up to £200,000 and with the
Programme being managed by Shore Capital Stockbrokers Limited pursuant to the
terms as announced. As at 30 June 2023 and as at 14 August 2023, 200,000 and
275,000 Ordinary Shares, respectively, were held in treasury under the
Programme.
C. On 14 March, 2023 at the Company's annual general meeting, Mr. Michael
Yehezkel Karo was elected as an independent non-executive director.
Note 6 - SUBSEQUENT EVENTS:
A. On 11 July, 2023 the Company acquired minority holdings in Ginat for an
insignificant amount and now holds 100% of the company.
B. On 19 July, 2023 the Company completed the registration of its fully
owned subsidiary, MTI Wireless Communication India Private Limited, in India
in order to support local demand in the market.
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