First-half results from BATM Advanced Communications Ltd (LSE:BVC) could best be described as nuanced, though chief executive, Dr Zvi Marom, called them "solid".
Crucially, the group, whose operations span networking, cyber and diagnostics, said it was trading in line with expectations for the full year.
Revenues for the six months ended 30 June 2022 were down US$6.7mln at US$57.5mln.
This largely reflected the performance of the bio-medical unit and, specifically, the downturn in demand for its diagnostic products as the Covid threat receded.
Growth is expected to return to this division in the second half, investors were told.
Elsewhere, there was an increase in sales from the smaller networking and cyber operation, which grew 44% in the first half.
BATM's revenue drop was accompanied by a fall in the gross margin which resulted in a decline in underlying profitability (EBITDA) to US$3.7mln from an exceptional US$22.7mln a year earlier.
CEO Marom said the group had entered the second half with "sustained momentum and a significant backlog to be delivered against".
“The cyber unit expects to deliver solid growth and the networking unit expects sales to continue to grow in the second half of the year,” he explained.
“The bio-medical division is expected to return to growth in the second half as diagnostic products remain in demand across the globe.
“Whilst mindful of the potential impact of global supply chain challenges, and the need to secure further contracts, particularly in the bio-medical division, the group remains on track to deliver revenues for the full year 2022 in line with market expectations.”