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MTI Wireless Edge - Q1 2020 Financial Results

RNS Number : 1205N
MTI Wireless Edge Limited
18 May 2020
 

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)

18 May 2020

MTI Wireless Edge Ltd

("MTI" or the "Company")

Q1 2020 Financial Results

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased today to announce its financial results for the three month period ended 31 March 2020.

Financial highlights

·    Solid revenue growth delivered, up by 5% to $9.56m (Q1 2019: $9.08m)

·    Increasing scale and improved profit margins, led to a 40% increase in profit from operations to $0.84m (Q1 2019: $0.6m)

·    Finance expenses in Q1 were higher than typical, as a result of certain significant currency exchange fluctuations due to the COVID-19 pandemic, with some of this effect having reversed to date 

·    Earnings per share increased by 4% to 0.67 US cents (Q1 2019: 0.64 US cents)

·    Solid generation of cash from operations of $1.3m (Q1 2019: $1.3m), increasing net cash to $8.6m at 31 March 2020 (31 March 2019: $5.25m, 31 December 2019: $7.7m)

·    2019 dividend of $0.02 per share (2018 dividend: $0.015 per share) paid on 10 April 2020

Operational highlights

·    Good order book and pipeline of opportunities across all three of the Company's divisions

·    New customers for Mottech's water management solutions from China, a key market for future expansion

·    Substantial demand for mobile usage and connectivity bodes well for MTI's 5G backhaul antenna solution

·    MTI Summit continued to perform well as we continue seeing increased demand for our solutions from the Israeli market and from our St Petersburg office

Moni Borovitz, Chief Executive Officer of MTI Wireless Edge, said:

"I am extremely pleased to report that during Q1 we delivered growth consistent with previous years. We believe that technology companies will be at the forefront of the recovery from the COVID-19 pandemic, particularly those such as our antenna division, as our end customers look to new technology, such as 5G, to increase their network data capacity to meet the demands of flexible and remote working. However, it is hard to predict the speed of the recovery as travel and health restrictions are impacting on our supply chain as well as our customers' ability to upgrade their data networks and installations. Our management team are very focused on: i) mitigating these risks as we seek to duplicate suppliers so that we are not reliant on one particular company or country; and ii) working closely with our customers to understand their plans.

Overall, the combination of our strong balance sheet and the market outlook for our industry, makes us confident we will weather the COVID-19 storm and be well placed to participate in the economic recovery. In terms of 2020, we remain cautious as we navigate these short term economic challenges and whilst currently our results and the order book supports our budget planning for 2020, we will carefully monitor our financial progress throughout the year, and update the market accordingly.

As of the date of this report, we have resumed working in most of our facilities (whilst adhering to the new health requirements and regulations) and we are seeing the majority of our markets recover although there are still significant challenges. Most importantly, none of our employees or their families were infected by COVID-19.

With these factors in mind, below is a short review of each of our three divisions:

The antenna division, which sells antennas and custom developed antenna solutions, has exciting opportunities in the future sales of its 5G backhaul antenna solutions to support mobile phone operators roll-out their 5G networks. While COVID-19 has generally had a negative impact on businesses this has not been the case for the telecom industry. Mobile operators are experiencing the highest ever demand for bandwidth as the western world switches to working and learning from home. The change in telecom usage that was expected to occur over a period of years has occurred in just weeks and provided 5G with significant impetus.

The wireless water management division continued to see good demand in markets coming out from lockdowns and we are confident that the need for better control over water and power resources, food production traceability, lower costs and better yields hasn't gone away. We announced in April 2020 a collection of new contracts won in China and it is encouraging to see this key market for Mottech re-open.

The distribution business continued to make good progress as the bigger part of this operation is based in Israel and can be managed and processed remotely. We continue seeing increased demand for our products and solutions in Israel and in our St Petersburg office, where we had a strong start for 2020 with a US$1.5 million contract. We are now waiting for the Russian market to resume and enable MTI Summit to capitalise on the strong start it made in this market.

Overall, we are cautiously optimistic for MTI's prospects in 2020. Looking further ahead, we confidently believe the Company's clear focus on providing radio frequency solutions coupled to being diversified across several markets and geographies positions us well to continue to grow and expand through a mix of acquisition led and organic growth."

For further information please contact:

 

MTI Wireless Edge Ltd                                                                                           +972 3 900 8900

Moni Borovitz, CEO                                                                                                 http://www.mtiwirelessedge.com

 

Allenby Capital Limited (Nomad and Joint Broker)                                          +44 20 3328 5656

Nick Naylor

Alex Brearley

 

Peterhouse Capital Limited (Joint Broker)                                                        +44 20 7469 0930

Lucy Williams

Eran Zucker

 

Novella (Financial PR)                                                                                           +44 20 3151 7008

Tim Robertson

Fergus Young

 

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 90 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 WiMAX, Broadband access, public safety, RFID, base stations 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 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, while reducing operational and maintenance costs. 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.

 

 

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

 

 

Three month period ended

 March 31,

 

Year ended December 31,

 

2020

 

2019

 

2019

 

U.S. $ in thousands

 

Unaudited

 

 

 

 

 

 

 

 

Revenues

9,556

 

9,076

 

40,043

Cost of sales

6,441

 

6,155

 

27,247

 

 

 

 

 

 

Gross profit

3,115

 

2,921

 

12,796

Research and development expenses

250

 

290

 

1,185

Distribution expenses

907

 

1,089

 

4,229

General and administrative expenses

1,108

 

941

 

3,931

Loss (profit) from sale of property, plant and equipment

8

 

-

 

(8)

 

 

 

 

 

 

Profit from operations

842

 

601

 

3,459

Finance expenses

140

 

68

 

211

Finance income

(15)

 

(29)

 

(161)

 

 

 

 

 

 

Profit before income tax

717

 

562

 

3,409

Tax expenses

124

 

12

 

454

 

 

 

 

 

 

Profit

593

 

550

 

2,955

Other comprehensive income (loss) net of tax:

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

Re-measurement of defined benefit plans

-

 

-

 

(6)

 

 

 

 

 

 

Items that may be reclassified to profit or loss:

 

 

 

 

 

Adjustment arising from translation of financial statements of foreign operations

(278)

 

7

 

62

 

 

 

 

 

 

Total other comprehensive income (loss)

(278)

 

7

 

56

 

 

 

 

 

 

Total comprehensive income

315

 

557

 

3,011

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

Owners of the parent

585

 

558

 

2,849

Non-controlling interests

8

 

(8)

 

106

 

 

 

 

 

 

 

593

 

550

 

2,955

Total comprehensive income (loss) attributable to:

 

 

 

 

 

Owners of the parent

307

 

565

 

2,905

Non-controlling interests

8

 

(8)

 

106

 

315

 

557

 

3,011

 

 

 

 

 

 

Earnings per share (dollars)

 

 

 

 

 

Basic

0.0067

 

0.0064

 

0.0327

Diluted

0.0066

 

0.0064

 

0.0327

 

 

 

 

 

 

Weighted average number of shares outstanding

 

 

 

 

 

Basic

87,873,946

 

86,765,353

 

87,229,851

Diluted

88,035,747

 

87,131,353

 

87,229,851

 

 

 

 

 

 

 

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

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

 

For the three month period ended March 31, 2020 (Unaudited):

 

Attributed to owners of the parent

 

 

 

Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2020

207

22,868

52

(62)

(658)

22,407

883

23,290

 

 

 

 

 

 

 

 

 

Changes during the three month period

    ended March 31, 2020:

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

-

-

-

-

585

585

8

593

Other comprehensive loss

 

 

 

 

 

 

 

 

Translation differences

-

-

-

(278)

-

(278)

-

(278)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

-

-

(278)

585

307

8

315

Profit from acquisition and disposal of treasury shares (note 5B)

-

8

-

-

-

8

-

8

Exercise of options to share capital

1

24

(4)

-

-

21

-

21

Share based payment

-

-

1

-

-

1

-

1

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

208

22,900

49

(340)

(73)

22,744

891

23,635

 

 

 

 

 

 

 

 

 

 

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

 

 

 

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY (CONT.)

 

For the three month period ended March 31, 2019 (Unaudited):

 

Attributed to owners of the parent

 

 

 

Share capital

Additional paid-in capital

Capital reserve

for share-based

payment

transactions

Translation differences

Retained earnings

Total attributable to owners of the  parent

Non-controlling interest

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

Balance at January 1, 2019

205

22,388

366

(124)

(2,195)

20,640

375

21,015

 

 

 

 

 

 

 

 

 

Changes during the three month period

    ended March 31, 2019:

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

Profit (loss) for the period

-

-

-

-

558

558

(8)

550

Other comprehensive income

 

 

 

 

 

 

 

 

Translation differences

-

-

-

7

-

7

-

7

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) for the period

-

-

-

7

558

565

(8)

557

Buy back purchase of stock

(1)

-

-

-

(133)

(134)

-

(134)

Share based payment

-

-

2

-

-

2

-

2

 

 

 

 

 

 

 

 

 

Balance at March 31, 2019

204

22,388

368

(117)

(1,770)

21,073

367

21,440

 

 

 

 

 

 

 

 

 

 

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, 2019 :

 

Attributable to owners of the parent

 

 

 

Share capital

Additional paid-in capital

Capital Reserve from share-based payment transactions

Translation differences

Retained earnings

Total attributable to owners of the  parent

Total equity

 

U.S. $ in thousands

 

 

 

 

 

 

 

 

 

 

Balance as at January 1, 2019

205

22,388

366

(124)

(2,195)

20,640

375

21,015

 

 

 

 

 

 

 

 

 

Changes during 2019:

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

2,849

2,849

106

2,955

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Re measurements on defined benefit plans

-

-

-

-

(6)

(6)

-

(6)

Translation differences

-

-

-

62

-

62

-

62

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year

-

-

-

62

2,843

2,905

106

3,011

Dividend

-

-

-

-

(1,306)

(1,306)

-

(1,306)

Non-controlling Interest of newly purchased subsidiary

-

-

-

-

-

-

402

402

Classification of ESOP that expired

-

291

(291)

-

-

-

-

-

Exercise of options to share capital

2

146

(31)

-

-

117

-

117

Profit from acquisition and disposal of treasury shares (note 5C)

-

43

-

-

-

43

-

43

Share based payment

-

-

8

-

-

8

-

8

Balance as at December 31, 2019

207

22,868

52

(62)

(658)

22,407

883

23,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

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

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

 

 

31.03.2020

 

31.03.2019

 

31.12.2019

 

U.S. $ in thousands

 

Unaudited

 

 

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

8,985

 

6,068

 

8,140 

Trade and other receivables

8,378

 

9,628

 

9,799

Unbilled revenue

3,305

 

2,470

 

2,866

Current tax receivables

555

 

700

 

672

Inventories

5,695

 

5,447

 

5,748

 

 

 

 

 

 

 

26,918

 

24,313

 

27,225

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

 

 

Long term prepaid expenses

46

 

47

 

31

Property, plant and equipment

5,165

 

5,080

 

5,212

Deferred tax assets

655

 

731

 

664

Intangible assets

1,103

 

875

 

1,116

 

 

 

 

 

 

 

6,969

 

6,733

 

7,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

33,887

 

31,046

 

34,248

 

 

 

 

 

 

 

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

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

 

 

31.03.2020

 

31.03.2019

 

31.12.2019

 

U.S. $ In thousands

 

Unaudited

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current maturities and short term bank credit and loans

292

 

440

 

312

Trade payables

4,237

 

4,391

 

6,448

Other accounts payable

4,288

 

3,217

 

2,691

Current tax payables

203

 

79

 

230

 

 

 

 

 

 

 

9,020

 

8,127

 

9,681

 

 

 

 

 

 

NON- CURRENT LIABILITIES:

 

 

 

 

 

Contingent consideration

69

 

-

 

69

Lease liabilities

282

 

365

 

224

Loans from banks, net of current maturities

65

 

374

 

141

Employee benefits, net

816

 

740

 

843

 

 

 

 

 

 

 

1,232

 

1,479

 

1,277

 

 

 

 

 

 

Total liabilities

10,252

 

9,606

 

10,958

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Equity attributable to owners of the parent

 

 

 

 

 

Share capital

208

 

204

 

207

Additional paid-in capital

22,900

 

22,388

 

22,868

Capital reserve from share-based payment transactions

49

 

368

 

52

Translation differences

(340)

 

(117)

 

(62)

Retained earnings

(73)

 

(1,770)

 

(658)

 

 

 

 

 

 

 

22,744

 

21,073

 

22,407

 

 

 

 

 

 

Non-controlling interest

891

 

367

 

883

 

 

 

 

 

 

Total equity

23,635

 

21,440

 

23,290

 

 

 

 

 

 

Total equity and liabilities

33,887

 

31,046

 

34,248

 

 

 

 

 

 

             

 

May 18, 2020

 

 

 

Date of approval of financial statements

Moshe Borovitz

Chief Executive Officer

Elhanan Zeira

Controller

Zvi Borovitz

Non-executive Chairman of the Board

 

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

 

 

 

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

 

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

 

 

Three month period  ended

 March 31,

 

Year ended December 31,

 

 

2020

 

2019

 

2019

 

 

U.S. $ in thousands

 

 

Unaudited

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Profit for the period

 

593

 

550

 

2,955

Adjustments for:

 

 

 

 

 

 

Depreciation and amortization

 

256

 

283

 

973

Gain (loss) from sale of property, plant and equipment

 

8

 

-

 

(8)

Equity settled share-based payment expense

 

1

 

2

 

8

Finance (income) expenses, net

 

(24)

 

29

 

32

Tax expenses 

 

124

 

12

 

454

Changes in operating assets and  liabilities:

 

 

 

 

 

 

Decrease (increase) in inventories

 

(143)

 

572

 

523

Decrease (increase) in trade receivables

 

1,327

 

(63)

 

233

Decrease (increase) in other accounts receivables

 

15

 

23

 

(137)

Increase in unbilled revenues

 

(439)

 

(199)

 

(595)

Increase (decrease) in trade and other accounts payables

 

(397)

 

646

 

1,821

Increase (decrease) in employee benefits, net

 

(27)

 

39

 

136

 

 

 

 

 

 

 

Cash from operations

 

1,294

 

1,894

 

6,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest received

 

19

 

-

 

44

Interest paid

 

(4)

 

(20)

 

(77)

Income tax paid

 

(31)

 

(535)

 

(764)

 

 

 

 

 

 

 

Net cash provided by operating activities

 

1,278

 

1,339

 

5,598

 

 

 

 

 

 

 

               

 

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

 

 

 

 INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

 

 

 

Three month period ended

 March 31,

 

Year ended December 31,

 

 

 

2020

 

2019

 

2019

 

 

 

U.S. $ in thousands

 

 

 

Unaudited

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

Proceeds from sale of property, plant and equipment

 

21

 

-

 

31

 

Acquisition of initially consolidated subsidiaries

 

-

 

-

 

(23)

 

Purchase of property, plant and equipment

 

(129)

 

(174)

 

(707)

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(108)

 

(174)

 

(699)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

Dividend

 

-

 

-

 

(1,306)

 

Payments of lease liabilities

 

(102)

 

(155)

 

(511)

 

Treasury shares acquired

 

(155)

 

(134)

 

(428)

 

Treasury shares sold

 

163

 

-

 

471

 

Exercise of share options

 

21

 

-

 

117

 

Long term loan received from banks

 

-

 

-

 

-

 

Repayment of long-term loan from banks

 

(86)

 

(214)

 

(554)

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(159)

 

(503)

 

(2,211)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in cash and

cash equivalents during the period 

 

1,011

 

662

 

2,688

 

Cash and cash equivalents

 at the beginning of the period

 

8,140

 

5,401

 

5,401

 

Exchange differences on balances of cash and cash equivalents

 

(166)

 

5

 

51

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 at the end of the period

 

8,985

 

6,068

 

8,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

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 and Microwave, including engineering services in the field of aerostat systems and system engineering services.

In these financial statements, the Company included the results of its aerostat system division in its representation and consulting services division, as it deems this appropriate given the nature of the consulting services provided in both segments and the respective size of these segments.

 

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, 2019 was approved by the board on March 1, 2019. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of March 31, 2020 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2019 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, 2019 are applied consistently in these interim consolidated financial statements.

 

Note 3 - REVENUES:

 

 

Three month period  ended 

    March 31,

 

Year ended December 31,

 

 

 

2020

 

2019

 

2019

 

 

U.S. $ in thousands

 

 

Unaudited

 

 

Revenues arise from:

 

 

 

 

 

 

Sale of goods*

 

7,856

 

7,350

 

32,236

Rendering of services**

 

963

 

1,024

 

4,299

Projects**

 

737

 

702

 

3,508

 

 

9,556

 

9,076

 

40,043

 

 

 

 

 

 

 

                 

(*) at the point of time

(**) over time

 

Note 4 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the three month period ended March 31, 2020 and 2019 respectively and for the year ended December 31, 2019.

Three month period ended March 31, 2020 (Unaudited)

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

Revenues

 

 

 

 

 

External

2,940

3,680

2,936

-

9,556

Internal

2

-

20

(22)

-

 

 

 

 

 

 

Total

2,942

3,680

2,956

(22)

9,556

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

41

342

394

65

842

 

 

 

 

 

 

Finance expense, net

 

 

 

 

125

Tax expenses

 

 

 

 

124

 

 

 

 

 

 

Profit

 

 

 

 

593

 

 

 

 

 

 

 

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

 

 

 

 

 

 

Segment assets

15,094

8,441

7,319

-

30,854

 

 

 

 

 

 

Unallocated assets

 

 

 

 

3,033

 

 

 

 

 

 

Segment liabilities

2,966

2,243

4,041

-

9,250

 

 

 

 

 

 

Unallocated liabilities

 

 

 

 

1,005

 

Note 4- operating SEGMENTS (CONT.):

Three month period ended March 31, 2019 (Unaudited)

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

Revenues

 

 

 

 

 

External

2,830

3,503

2,743

-

9,076

Internal

-

-

33

(33)

-

 

 

 

 

 

 

Total

2,830

3,503

2,776

(33)

9,076

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

64

250

231

56

601

 

 

 

 

 

 

Finance expense, net

 

 

 

 

39

Tax expenses

 

 

 

 

12

 

 

 

 

 

 

Profit

 

 

 

 

550

 

 

 

 

 

 

 

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

 

 

 

 

 

 

Segment assets

13,076

8,755

4,755

-

26,606

 

 

 

 

 

 

Unallocated assets

 

 

 

 

4,460

 

 

 

 

 

 

Segment liabilities

3,019

2,398

2,826

-

8,243

 

 

 

 

 

 

Unallocated liabilities

 

 

 

 

1,363

 

 

 

 

 

 

 

Year ended December 31, 2019

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

$'000

Revenues

 

 

 

 

 

External

12,015

16,518

11,510

-

40,043

Inter-segment

-

-

171

(171)

-

 

 

 

 

 

 

Total

12,015

16,518

11,681

(171)

40,043

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit

444

1,562

1,228

225

3,459

 

 

 

 

 

 

Finance expense, net

 

 

 

 

50

Tax expenses

 

 

 

 

454

 

 

 

 

 

 

Profit

 

 

 

 

2,955

 

 

 

 

 

 

 

Note 4- operating SEGMENTS (CONT.):

Year ended December 31, 2019

 

Antennas

Water Solutions

Distribution & Consultation

Adjustment & Elimination

Total

 

U.S. $ in thousands

 

 

 

 

 

 

Segment assets

14,576

9,793

5,729

-

30,098

 

 

 

 

 

 

Unallocated assets

 

 

 

 

4,150

 

 

 

 

 

 

Segment liabilities

3,514

1,836

3,837

-

9,187

 

 

 

 

 

 

Unallocated liabilities

 

 

 

 

1,771

 

 

 

 

 

 

 

Note 5 - SIGNIFICANT EVENTS:

A.  On 1 March 2020, the Board of directors declared a cash dividend of 2 cents per share, representing approximately $1,758,000, in total. This dividend was paid on 10 April 2020 to shareholders on the register at the close of trading on 20 March 2020.

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"). On 23 January 2020, the Company announced that the board of directors of the Company and the board of directors of MTI Engineering had decided to continue with the Programme for another six months until 26 July 2020. As at 31 March 2020, no Ordinary Shares were held in treasury under the Programme.

In 2020, MTI Engineering generated a profit of $8,000 in relation to the Programme, which was recorded in additional paid-in-capital.

C.   During January 2020, an employee of the Company exercised options over 60,000 Ordinary Shares in exchange for a total consideration of approximately $21,000.

D.  Outbreak of COVID-19 and Business Continuity - In December 2019, the COVID-19 pandemic broke out in China, and the virus has spread to many countries around the world. In January 2020, the World Health Organization announced the outbreak of the Corona virus as a global health emergency, and in March 2020, the World Health Organization declared the pandemic as a global pandemic. The spread of the virus is an unusual event on its scale and is dynamic and emergent. Policymakers around the world were forced to take unprecedented steps to curb the pandemic, including the isolation of civilians and establishing strict regulations and rules to create social distancing, to reduce the chances of infection. This included eliminating most inbound and outbound flights. Along with the dangerous impacts on human lives as a result of the outbreak, significant global and local business impacts have been recorded. As of March 2020, restrictions have been imposed by most governments on civilian movement and public and private sector activity.

Note 5 - SIGNIFICANT EVENTS (CONT.):

While the Group's offices were partially and/or temporarily closed (depending on country of operations) during the second part of March and most of April 2020, the Group was able to maintain good levels of operation using remote work procedures and a sufficient level of production in its production facilities while assuring the health of employees.

As of the date of this report the Group has resumed its operation in most of its facilities (still under health requirements and regulations) and it sees recovery in most of its territories although there are still significant challenges. All aspects of the Group's supply chain are working slower, and the Company's industry has been affected on the operational level, along with the rest of the world economy as it faces the risk of a global recession where the ability to predict the timing of a recovery is uncertain.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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Quick facts: MTI Wireless Edge Limited

Price: 47

Market: AIM
Market Cap: £41.6 m
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