REG - MTI Wireless Edge - Q3 Results <Origin Href="QuoteRef">MWEE.L</Origin>

MTI Wireless EdgeAnnouncement

10/11/2014 09:53

RNS Number : 4598W
MTI Wireless Edge Limited
10 November 2014
10 November 2014
MTI Wireless Edge Ltd 
("MTI" or the "Company")
Financial results for the nine months ended 30 September 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 nine months ended 30 September 2014.
Highlights
 Revenue increased by 7% to US$10.7m (1-9/2013: US$10.0m).
 Gross profit increased by 5% to US$3.9m (1-9/2013: US$3.7m).
 Operational profit increased 16% to US$217,000 (1-9/2013: US$187,000). 
 Profit before tax doubled to US$110,000 (1-9/2013: US$56,000).
 Net cash generated from operation increased 65% to US$313,000 (1-9/2013: US$189,000). 
Dov Feiner, Chief Executive Officer, commented: 
"I am pleased to announce that during the first nine months of 2014 the Company's revenue increased and we were able to increase our profits. This healthy progress was accompanied by strong cash generation. This resulted with the Company's nine months profits before tax exceeding those generated during the whole of 2013. 
"In the third quarter of 2014 we have experienced a 5% depreciation of the US Dollar versus the New Israeli Shekel which is in our favor for the long run but in this quarter created a large finance expense which reduced our profitability. This expense does not involve cash outflow.
"As stated before we continue to see strong demand for our 80GHz products and expect our revenue from this product line to double in 2014 (compared to 2013).
"We have made good progress in 2014 and the Board is confident that this trend will continue. The Board is encouraged that the outlook for the Group remains positive."


For further information please contact:
MTI Wireless Edge
Dov Feiner, CEO
Moni Borovitz, Financial Director
http://www.mtiwe.com/
+972 3 900 8900
Allenby Capital Limited (Nominated adviser and broker)
Nick Naylor
Alex Price
+44 20 3328 5656
Newgate Threadneedle (Financial PR)
Josh Royston
Robyn 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 

Nine months 
ended September 30,

Year ended December 31,

2014

2013

2013

U.S. $ in thousands

Unaudited

Audited






Revenues
10,659

9,987

13,422
Cost of sales
6,761

6,293

8,624






Gross profit
3,898

3,694

4,798
Research and development expenses
927

861

1,127
Distribution expenses
1,386

1,381

1,804
General and administrative expenses
1,368

1,265

1,677






Profit from operations
217

187

190
Finance expense
182

146

162
Finance income
75

15

58






Profit before income tax
110

56

86
Income tax benefit
(72)

(143)

(340)






Profit or loss
182

199

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 
182

199

444












Profit or loss Attributable to:





Owners of the parent
175

162

388
Non-controlling interest
7

37

38







182

199

426
Total comprehensive income Attributable to:





Owners of the parent
175

162

406
Non-controlling interest
7

37

38







182

199

444






Earnings per share(dollars per share)





Basic andDiluted
0.0034

0.0031

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 CONSOLIDATEDSTATEMENT OF 
CHANGES IN EQUITY
For the nine months period ended September 30, 2014:

Attributed to owners of the parent


Share capital
Additional paid-in capital

Capital Reserve
for share-based
payment
transactions

Retained earnings

Total attributable to owners of the parent

Non-controlling interest 

Total equity
U.S. $ in thousands










Balance at January 1, 2014 (Audited)
109

14,945

259

2,420

17,733

194

17,927










Changes during the nine months 
 ended September 30, 2014 (Unaudited):












Comprehensive income for the period 
-

-

-

175

175

7

182
Dividend paid
-

-

-

(351)

(351)

-

(351)
Share based payment 
-
-

20

-

20

-

20
Balance at September 30, 2014 (Unaudited)
109
14,945

279

2,244

17,577

201

17,778












The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATEDSTATEMENT OF 
CHANGES IN EQUITY
For the nine months period ended September 30, 2013:

Attributed to owners of the parent


Share capital
Additional paid-in capital

Capital Reserve
for share-based
payment
transactions

Retained earnings

Total attributable to owners of the parent

Non-controlling interest 

Total equity
U.S. $ in thousands










Balance at January 1, 2013 (Audited)
109

14,945

220

2,313

17,587

156

17,743










Changes during the nine months period
 ended September 30, 2013 (Unaudited):












Comprehensive income for the period 
-

-

-

162

162

37

199
Dividend paid
-

-

-

(299)

(299)

-

(299)
Share based payment 
-
-

32

-

32

-

32
Balance at September 30, 2013 (Unaudited)
109
14,945

252

2,176

17,482

193

17,675












The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATEDSTATEMENT OF 
CHANGES IN EQUITY
For the year ended December 31, 2013:

Attributable to owners of the parent


Share capital
Additional paid-in capital

Capital Reserve
for share-based
payment
transactions

Retained earnings

Total attributable to owners of the parent

Non-controlling interest

Total equity
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
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF 
FINANCIAL POSITION 

30.09.2014

30.09.2013

31.12.2013

U.S. $ in thousands

Unaudited

Audited
ASSETS





CURRENT ASSETS:





Cash and cash equivalents 
2,333

944

992
Other current financial assets
3,717

5,704

5,753
Trade receivables
5,465

4,856

5,359
Other receivables
857

636

548
Currenttax receivables
138

110

165
Inventories
2,965
2,912

3,091







15,475
15,162

15,908












NON-CURRENT ASSETS:





Long term prepaid expenses
24

39

39
Property, plant and equipment
5,220

5,324

5,343
Investment property
1,248

1,283

1,275
Deferred tax assets
315

225

226
Goodwill
406
406

406







7,213
7,277

7,289














Total assets
22,688
22,439

23,197






The accompanying notes form an integral part of the financial statements.

INTERIM CONSOLIDATED STATEMENT OF 
FINANCIAL POSITION 

30.09.2014

30.09.2013

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
1,967

1,532

1,895
Other accounts payables
918

730

790
Currenttax payables
-

145

-







3,146

2,657

3,247






NON- CURRENTLIABILITIES:





Loans from banks
1,424

1,625

1,595
Employee benefits
340

310

316
Provisions 
-

172

112







1,764

2,107

2,023






Total liabilities
4,910

4,764

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
279

252

259
Retained earnings
2,244

2,176

2,420







17,577

17,482

17,733






Non-controlling interest
201

193

194






Total equity 
17,778

17,675

17,927









Total equity and liabilities
22,688

22,439

23,197






November 9, 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

Nine months 
ended September 30,

Year ended December 31,


2014

2013

2013


U.S. $ in thousands


Unaudited

Audited
Cash Flows from Operating Activities:













Profitfor the period

182

199

426
Adjustments to reconcile net income to 
net cash provided by operating activities:






Depreciation 

339

322

436
Loss (Gain) from short-term investments

3

59

(29)
Equity settled share-based payment expense

20

32

39
Finance expenses, net

66

74

98
Income tax

(72)

(143)

(340)
Changes in operating assets and liabilities:






Decrease (increase) in inventories 

126

35

(144)
Increase in trade receivables

(106)

(483)

(986)
Increase in other accounts receivables and prepaid expenses

(294)

(110)

(22)
Increase in trade and other accounts payables

193

260

682
Increase in employee benefits, net

24

-

78
Decrease in provisions

(112)

54

(60)
Interest paid

(66)

(74)

(98)
Income tax received (paid)

10

(36)

(40)
Net cash generated in operating activities

313

189

40














The accompanying notes form an integral part of the financial statements.


INTERIM CONSOLIDATED STATEMENTS OF 
CASH FLOWS


Nine months 
ended September 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

2,028

(3,260)

(3,221)
Purchase of property, plant and equipment

(182)

(146)

(270)







Net cash generated (used in) investing activities

1,846

(3,406)

(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

(166)

(188)

(250)







Net cash used in financing activities

(818)

(487)

(205)














Increase (decrease) in cash and 
cash equivalents during the period 

1,341

(3,704)

(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 

2,333

944

992







Appendix A - Non-cash transactions:


Nine months 
ended September 30,

Year ended December 31,


2014

2013

2013


U.S. $ in thousands


Unaudited

Audited







Purchase of property and equipment 
 against trade payables

12

4

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 andsince 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:

September 30,
December 31,

2014

2013
2013





NIS (in Dollar per 1 NIS)
0.271

0.283
0.288
Nine months ended 
September 30,
Year ended December 31,

2014

2013
2013

%

%
%
NIS 
(6.06)

5.54
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 September 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 nine months ended September 30, 2014 and 2013, respectively and for the year ended December 31, 2013.
NinemonthsendedSeptember 30, 2014 (Unaudited)








Commercial

Military

Total


 $'000
Revenue






External

8,573

2,086

10,659







Total

8,573

2,086

10,659














Segment income 

173

44

217














Finance expense, net





(107)







Profit before income tax





110







Other






Depreciation and other non-cash expenses

300

39

339







Nine monthsended September 30, 2013 (Unaudited)








Commercial

Military

Total


 $'000
Revenue






External

7,552

2,435

9,987







Total

7,552

2,435

9,987














Segment income (loss)

(56)

243

187







Unallocated corporate expenses






Finance expenses, net





(131)







Profit before income tax





56







Other






Depreciation and other non-cash expenses

272

49

322







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







Note 4 -TRANSACTIONS WITH RELATED PARTIES: 
The Parent Company and other related parties provide certain services to the Group as follows:


Nine monthsended 
 September 30,

Year ended December 31,


2014

2013

2013


U.S. $ in thousands


Unaudited

Audited
Purchased Goods

194

218

322 
Management Fee

294

240

334 
Services Fee

156

120

190 
Leaseincome

(90)

(90)

(120)
Compensation of key management personnel of the Group:


Nine monthsended 
 September 30,

Year ended December 31,


2014

2013

2013


U.S. $ in thousands


Unaudited

Audited
Short-term employee benefits *)

523

483

673







*) Including Management fees for the CEO, Director executive management and other related parties.
All Transactions are made at market value. 

30.09.2014

30.09.2013

31.12.2013

U.S. $ In thousands

Unaudited

Audited
Related parties
55

83

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
The company news service from the London Stock Exchange
  END
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