Results for the six months ended 30 June 2017 | RNS | Ticker

/News/RNS

Results for the six months ended 30 June 2017

RNS Announcement

RNS Number : 3294N

MTI Wireless Edge Limited

08 August 2017

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

8 August 2017

MTI Wireless Edge Ltd

("MTI" or the "Company")

Financial results for the six months ended 30 June 2017

MTI Wireless Edge Ltd. (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announces its unaudited results for the six months ended 30 June 2017.

Highlights:

· Revenues increased by 13% year-on-year to $12.8m (H1 2016: $11.3m)

· Operating profit increased year-on-year by 79% of $0.9m (H1 2016: $0.5m)

· Profit before tax nearly tripled year-on-year to $1m (H1 2016: $0.35m)

· Earnings per share of 1.55 US cents (H1 2016: 0.45 US cents)

· Shareholder's equity grew during the period to $19.5m (31 December 2016: $18.9m), equivalent to 28.2 pence per share (converted at 1.31 US dollar/ British Pound)

· Cash at 30 June 2017 of $4.8m (30 June 2016: $4.9m)

Dov Feiner, CEO of MTI Wireless, commented:

"During the first half of 2017, we have continued to see growth in both segments of our business. In our wireless controller segment, via Mottech, we continue to see opportunities in various geographical areas, some of which we announced recently including in China, where we see traction from various sectors and territories. In the antenna segment we had a very good first half, in both the broadband access and RFID product lines, whilst in the military division we had good bookings and a good pipeline of opportunities, which provides us greater visibility of longer-term revenues. Given the current performance, order book and pipeline of opportunities in the antenna segment, we strongly believe that our growth will continue in 2017 and beyond."

For further information please contact:

MTI Wireless Edge Ltd

Dov Feiner, CEO

Moni Borovitz, Financial Director

http://www.mtiwe.com/

+972 3 900 8900

Nomad and Joint Broker

Allenby Capital Limited

Nick Naylor

Alex Brearley

+44 20 3328 5656

Joint Broker
Peterhouse Corporate Finance Limited

Lucy Williams

Eran Zucker

+44 20 7469 0930

About MTI Wireless Edge

MTI is engaged in the development, production and marketing of high quality low cost, flat panel antennas for commercial and military applications. Commercial applications include: WiMAX, Wireless Networking, RFID readers and Broadband Wireless Access. With over 40 years' experience of supplying 100KHz to 90GHz antennas, 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 include 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.

Via its subsidiary, Mottech Water Solutions Ltd, MTI is also 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. Mottech, headquartered in Israel, is the global prime distributor of Motorola for the IRRInet remote control solutions serving its customers worldwide through its subsidiaries and a global network of local distributers and representatives. It utilizes over 25 years of experience in providing its customers with remote control and management systems which ensure constant, reliable and accurate water usage, while reducing operational costs and maintenance costly expenses. Mottech's activities are focused on the market segments of agriculture, water distribution, Municipal and Commercial Landscape and Wastewater and Storm water Reuse.

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Six month period ended June 30,		Year ended December 31,
	2017	2016	2016
	U.S. $ in thousands
	Unaudited

Revenues	12,758	11,325	23,276
Cost of sales	7,896	7,067	14,728

Gross profit	4,862	4,258	8,548
Research and development expenses	461	574	1,079
Distribution expenses	1,912	1,819	3,346
General and administrative expenses	1,610	1,375	2,640

Profit from operations	879	490	1,483
Finance expense	101	163	334
Finance income	205	22	57

Profit before income tax	983	349	1,206
Income tax expense	111	104	222

Profit	872	245	984
Other comprehensive income (loss) net of tax:
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit plans	-	-	(16)
	-	-	(16)
Items that may be reclassified to profit or loss:
Adjustment arising from translation of financial statements of foreign operations	31	177	121
	31	177	121
Total other comprehensive income	31	177	105

Total comprehensive income	903	422	1,089

Profit attributable to:
Owners of the parent	811	232	936
Non-controlling interest	61	13	48

	872	245	984
Total comprehensive income attributable to:
Owners of the parent	842	409	1,041
Non-controlling interest	61	13	48

	903	422	1,089

Earnings per share (dollars)
Basic	0.0155	0.0045	0.0181
Diluted	0.0153	0.0044	0.0178

Weighted average number of shares outstanding
Basic	52,346,974	51,621,990	51,687,853
Diluted	53,167,096	52,616,775	52,575,593

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

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY

For the Six month period ended June 30, 2017 (Unaudited):

	Attributed to owners of the parent
	Share capital	Additional paid-in capital	Capital Reserve for share-based payment transactions	Adjustment arising from translation of financial statements of foreign operations	Retained earnings	Total attributable to owners of the parent	Non-controlling interest	Total equity
	U.S. $ in thousands

Balance at January 1, 2017	109	14,964	323	44	3,468	18,908	324	19,232

Changes during the six month period ended June 30, 2017:
Comprehensive income
Profit for the period	-	-	-	-	811	811	61	872
Other comprehensive income
Translation differences	-	-	-	31	-	31	-	31

Total comprehensive income for the period	-	-	-	31	811	842	61	903
Exercise of options to share capital	(*)	14	(*)	-	-	14	-	14
Dividend	3	280	-	-	(518)	(235)	-	(235)
Share based payment	-	-	14	-	-	14	-	14

Balance at June 30, 2017	112	15,258	337	75	3,761	19,543	385	19,928

(*) less than one thousand dollars

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

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY (CONT.)

For the Six month period ended June 30, 2016 (Unaudited):

	Attributed to owners of the parent
	Share capital	Additional paid-in capital	Capital Reserve for share-based payment transactions	Adjustment arising from translation of financial statements of foreign operations	Retained earnings	Total attributable to owners of the parent	Non-controlling interest	Total equity
	U.S. $ in thousands

Balance at January 1, 2016	109	14,945	304	(77)	3,116	18,397	266	18,663

Changes during the six month period ended June 30, 2016:
Comprehensive income
Profit for the period	-	-	-	-	232	232	13	245
Other comprehensive income
Translation differences	-	-	-	177	-	177	-	177

Total comprehensive income for the period	-	-	-	177	232	409	13	422
Share issuance to non-controlling interest in subsidiary	-	(10)	-	-	-	(10)	10	-
Exercise of options to share capital	(*)	22	(1)	-	-	21	-	21
Dividend paid	-	-	-	-	(568)	(568)	-	(568)
Share based payment	-	-	5	-	-	5	-	5

Balance at June 30, 2016	109	14,957	308	100	2,780	18,254	289	18,543

(*) less than one thousand dollars

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

INTERIM CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY (CONT.)

For the year ended December 31, 2016:

	Attributable to owners of the parent
	Share capital	Additional paid-in capital	Capital Reserve from share-based payment transactions	Adjustment arising from translation of financial statements of foreign operations	Retained earnings	Total attributable to owners of the parent	Non-controlling interest	Total equity
	U.S. $ in thousands

Balance as at January 1, 2016	109	14,945	304	(77)	3,116	18,397	266	18,663
Changes during 2016:
Comprehensive income
Profit for the year	-	-	-	-	936	936	48	984
Other comprehensive income
Re measurements on defined benefit plans	-	-	-	-	(16)	(16)	-	(16)
Translation differences	-	-	-	121	-	121	-	121

Total comprehensive income for the year	-	-	-	121	920	1,041	48	1,089
Share issuance to non-controlling interest in subsidiary	-	(10)	-	-	-	(10)	10	-
Exercise of options to share capital	(*)	29	(1)	-	-	28	-	28
Dividend paid	-	-	-	-	(568)	(568)	-	(568)
Share based payment	-	-	20	-	-	20	-	20

Balance as at December 31, 2016	109	14,964	323	44	3,468	18,908	324	19,232

(*) less than one thousand dollars

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

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

	30.06.2017	30.06.2016	31.12.2016
	U.S. $ in thousands
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	4,786	4,862	4,428
Trade receivables	9,525	8,131	8,159
Other receivables	792	909	706
Current tax receivables	586	331	455
Inventories	4,605	3,893	4,910

	20,294	18,126	18,658


NON-CURRENT ASSETS:
Long term prepaid expenses	39	49	48
Property, plant and equipment	5,328	5,562	5,453
Investment property	619	640	630
Deferred tax assets	617	475	500
Intangible assets	267	375	321
Goodwill	573	573	573

	7,443	7,674	7,525



Total assets	27,737	25,800	26,183

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

INTERIM CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

	30.06.2017	30.06.2016		31.12.2016
	U.S. $ In thousands
	Unaudited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank credit and loans	1,018	799	802
Trade payables	2,621	2,155	2,285
Other accounts payables	2,247	1,786	1,792
Current tax payables	143	20	3

	6,029	4,760	4,882

NON- CURRENT LIABILITIES:
Loans from banks, net of current maturities	1,321	2,017	1,664
Employee benefits, net	459	388	405
Other liabilities	-	92	-

	1,780	2,497	2,069

Total liabilities	7,809	7,257	6,951

EQUITY
Equity attributable to owners of the parent
Share capital	112	109	109
Additional paid-in capital	15,258	14,957	14,964
Capital reserve from share-based payment transactions	337	308	323
Translation differences	75	100	44
Retained earnings	3,761	2,780	3,468

	19,543	18,254	18,908

Non-controlling interest	385	289	324

Total equity	19,928	18,543	19,232


Total equity and liabilities	27,737	25,800	26,183

August 7, 2017

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

		Six months period ended June 30,				Year ended December 31,
		2017	2016		2016
		U.S. $ in thousands
		Unaudited
Cash Flows from Operating Activities:
Profit for the period		872	245	984
Adjustments for:
Depreciation and amortization		326	312	635
Loss (gain) from investments in financial assets		133	(10)	(57)
Equity settled share-based payment expense		14	5	20
Finance expenses, net		56	64	122
Income tax expense		111	104	222
Changes in operating assets and liabilities:
Decrease (increase) in inventories		372	551	(466)
Decrease (increase) in trade receivables		(1,409)	102	19
Decrease (increase) in other accounts receivables and prepaid expenses		(34)	368	572
Increase in trade and other accounts payables	4	700	44	105
Increase in employee benefits, net		54	1	2
Interest paid		(56)	(64)	(122)
Income tax paid		(215)	(553)	(837)

Net cash provided by operating activities		924	1,169	1,199

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

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

	Six months period ended June 30,		Year ended December 31,
	2017	2016	2016
	U.S. $ in thousands
	Unaudited
Cash Flows From Investing Activities:
Sale of investments in financial assets, net	-	2,142	2,142
Purchase of property, plant and equipment	(119)	(146)	(314)

Net cash provided by (used in) investing activities	(119)	1,996	1,828


Cash Flows From Financing Activities:
Exercise of share options	14	21	28
Dividend paid to the owners of the parent	(235)	(568)	(568)
Short term loan received from banks	166	-	-
Long term loan received from banks	-	-	87
Repayment of long-term loan from banks	(426)	(403)	(793)

Net cash used in financing activities	(481)	(950)	(1,246)


Increase in cash and cash equivalents during the period	324	2,215	1,781
Cash and cash equivalents at the beginning of the period	4,428	2,634	2,634
Exchange differences on balances of cash and cash equivalents	34	13	13

Cash and cash equivalents at the end of the period	4,786	4,862	4,428

Appendix A - Non-cash transactions:

		Six months period ended June 30,		Year ended December 31,
		2017	2016	2016
		U.S. $ in thousands
	Unaudited

Purchase of property, plant and equipment against trade payables	6		23	5
Scrip dividend (Note 5 B)	283		-	-

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 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. 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 is engaged in the development, design, manufacture and marketing of antennas and accessories.

Via its subsidiary, Mottech Water solutions Ltd. (hereafter "Mottech"), the Company is also 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.

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, 2016 was approved by the board on February 15, 2017. The report of the auditors on those financial statements was unqualified.

The interim consolidated financial statements as of June 30, 2017 have not been audited.

The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2016 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, 2016 are applied consistently in these interim consolidated financial statements.

Note 3 - operating SEGMENTS:

The following tables present revenue and profit information regarding the Group's operating segments for the six months period ended June 30, 2017 and 2016 respectively, and for the year ended December 31, 2016.

Six months period ended June 30, 2017 (Unaudited)
	Antennas	Water Solutions	Total
	U.S. $ in thousands
Revenue
External	6,579	6,179	12,758

Total	6,579	6,179	12,758


Segment profit	175	704	879


Finance income, net			104

Profit before income tax			983

Other
Depreciation and amortization	298	28	326

Six months period ended June 30, 2016 (Unaudited)
	Antennas	Water Solutions	Total
	U.S. $ in thousands
Revenue
External	5,304	6,021	11,325

Total	5,304	6,021	11,325


Segment profit (loss)	(345)	835	490


Finance expense, net			(141)

Profit before income tax			349

Other
Depreciation and amortization	288	24	312

Note 3 - operating SEGMENTS (CONT.):

Year ended December 31, 2016
	Antennas	Water Solutions	Total
	U.S. $ in thousands
Revenue
External	11,427	11,849	23,276

Total	11,427	11,849	23,276


Segment profit (loss)	(108)	1,591	1,483

Unallocated corporate expenses


Finance expense, net			(277)

Profit before income tax			1,206

Other
Depreciation and amortization	591	44	635

Note 4 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES:

The following transactions occurred with the Parent Company and other related parties:

	Six months period ended June 30,		Year ended December 31,
	2017	2016		2016
	U.S. $ in thousands
	Unaudited
Purchased Goods	103	105		369
Management Fee	221	185		428
Services Fee	130	124		249
Lease income	(36)	(36)		(72)

Compensation of key management personnel of the Group:

	Six months period ended June 30,		Year ended December 31,
	2017	2016		2016
	U.S. $ in thousands
	Unaudited
Short-term employee benefits *)	417	353		810

*) Including Management fees for the CEO, Directors, Executive Management and other related parties.

All Transactions were made at market value.

Note 4 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (CONT.):

Balances with related parties:

	As at
	30.06.2017	30.06.2016	31.12.2016
	U.S. $ in thousands
	Unaudited
Other accounts payables	293	90	207

Note 5 - SIGNIFICANT EVENTS:

A. During January and June 2017, employees exercised options over 120,000 shares in exchange for a total consideration of approximately $14,000.

B. On April 4, 2017, the Company paid a dividend of 1 US cent per share totaling approximately $235,000 and in addition, 1,022,328 new ordinary shares were issued to qualifying shareholders that chose the scrip dividend alternative.

C. During June 2017 Mottech agreed to establish a joint venture company in China ("Mottech China") with Omega Technologies LTD ("OTL"), which is an existing third-party sales representative for Mottech's water irrigation solutions in China. Mottech China will be 60% owned by Mottech. In addition to supporting Mottech's activities, it is intended that Mottech China will also sell additional third party products that are complementary to Mottech's equipment which are currently being sold by OTL in China.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR OKODPPBKDOFK

RNS metadata

Title: Results for the six months ended 30 June 2017
Time: 08:00:02
Date: 8 Aug 2017
Category: Results
ID: 3294N

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

8 August 2017

MTI Wireless Edge Ltd

("MTI" or the "Company")

Financial results for the six months ended 30 June 2017

MTI Wireless Edge Ltd. (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announces its unaudited results for the six months ended 30 June 2017.

Highlights:

· Revenues increased by 13% year-on-year to $12.8m (H1 2016: $11.3m)

· Operating profit increased year-on-year by 79% of $0.9m (H1 2016: $0.5m)

· Profit before tax nearly tripled year-on-year to $1m (H1 2016: $0.35m)

· Earnings per share of 1.55 US cents (H1 2016: 0.45 US cents)

· Shareholder's equity grew during the period to $19.5m (31 December 2016: $18.9m), equivalent to 28.2 pence per share (converted at 1.31 US dollar/ British Pound)

· Cash at 30 June 2017 of $4.8m (30 June 2016: $4.9m)

Dov Feiner, CEO of MTI Wireless, commented:

For further information please contact:

MTI Wireless Edge Ltd

Dov Feiner, CEO

Moni Borovitz, Financial Director

http://www.mtiwe.com/

+972 3 900 8900

Nomad and Joint Broker

Allenby Capital Limited

Nick Naylor

Alex Brearley

+44 20 3328 5656

Joint BrokerPeterhouse Corporate Finance Limited

Lucy Williams

Eran Zucker

+44 20 7469 0930

About MTI Wireless Edge

Share capital

U.S. $ in thousands

872

31

31

31

842

61

903

(*)

14

(*)

-

-

14

-

14

3

280

-

-

(518)

(235)

-

(235)

3,761

19,543

19,928

Share capital

U.S. $ in thousands

245

177

177

-

-

-

177

409

13

422

-

(10)

-

-

-

(10)

10

-

(*)

22

Joint Broker
Peterhouse Corporate Finance Limited