BATM Advanced Communications Ltd (LSE:BVC) said it entered 2023 with strong momentum across its business and a solid backlog to be delivered during the year, accordingly, it expects to report strong growth reflecting a double-digit percentage increase in revenue in all its units.
The outlook comment came as BATM posted its preliminary results for the year ended 31 December 2022, showing revenue from ongoing operations increased by 34.4% to US$27.9mln (2021: US$20.7mln), reflecting strong growth in both its Networking and Cyber units
The company, a leading provider of real-time technologies for networking solutions and medical laboratory systems, said that its Edgility edge computing and network function virtualisation (NFV) platform generated first revenue, contributing to the Networking unit's growth, with total backlog for Edgility of US$5.2mln at the year-end.
Commenting on the results in the statement, Moti Nagar, chief executive officer of BATM, said: "In 2022, there was robust underlying performance across our business as the effects of the pandemic increasingly subsided and we returned our focus to our regular activities. In particular, we achieved a key milestone with Edgility being awarded a contract by a major network provider in the UK, CityFibre.
"We believe Edgility will be instrumental in driving our future growth and so we are greatly encouraged by the increased interest and visibility over sales. Accordingly, while our revenues were negatively impacted by currency and lower demand for COVID-19 products, we exited the year as a stronger business than we were prior to the outbreak of the pandemic."
He added: "Looking ahead, the momentum of the second half of the year has been sustained into 2023 and we expect increased revenue in all our units. Having become the CEO at the start of this year, I have been visiting and meeting our business units, reviewing our strategy and building our plans for delivering sustainable growth.
"With the solid foundations that we have in place in core technologies that we believe will be market disrupters, the board remains confident in the prospects of the business and is working hard to demonstrate the substantial value that exists within BATM."
During the year, BATM was awarded a multi-year contract from CityFibre, the UK's largest independent carrier-neutral Full Fibre platform, for Edgility licences plus certain hardware.
It also established two new partnerships to boost Edgility's sales and marketing presence through the offering of joint solutions and sustained engagement with several potential customers worldwide.
Meanwhile, Network Edge, the company's carrier ethernet and mobile backhaul, saw a strong increase in revenue despite the ongoing impact of supply chain challenges, with new orders received primarily from existing customers for BATM's latest high-capacity solutions
The company's Cyber unit saw substantial growth in revenue from delivering on the high-value contracts won in the previous year and post-period, in January 2023, it won a US$26mln multi-year government defence order for the latest high-performance cyber security solution.
In BATM's Bio-Medical division - which represents 76% of total revenue - revenue was US$88.3mln (2021: US$112.0mln) while on a constant currency basis, revenue was US$97.5mln and excluding the contribution to both years from sales of COVID-19 related products, revenue increased to US$79.9mln (2021: US$74.9mln).
BATM's Diagnostics unit saw increased sales of molecular diagnostic products not related to COVID-19, which was offset by market-wide reduction in prices, as well as lower demand, for COVID-19 products as the global pandemic subsided.
The company's Eco-Med unit received a €3.6mln order for ISS-based bio-waste treatment solutions for medical settings, with delivery commencing in Q4 2022 and due to complete during 2023. Its Distribution unit delivered greater volume of regular business and increased sales prices, which, on a constant currency basis, enabled 6.8% revenue growth.
Overall, BATM's reported results for the year ending 31 December 2022 showed revenue of US$116.1mln (2021: US$140.0mln) and EBITDA of US$8.0mln (2021: US$29.6mln).
At the 2022 year-end, BATM had cash and short-term investment in deposits and other securities of US$44.2mln (2021: US$67.8mln).