MTI Wireless Edge reports stable third quarter
By Josh White
Date: Monday 25 Nov 2024
(Sharecast News) - MTI Wireless Edge reported stable revenue and improved profitability for the nine months ended 30 September on Monday, positioning itself for continued growth in its key markets, particularly defence and 5G.
The AIM-traded firm said revenue for the period remained flat at $33.7m, while net profit rose 10% to $3.1m, supported by increased financial income and lower tax rates.
Earnings per share grew 11% to 3.6 US cents.
The company said its antenna division was a standout performer, benefiting from strong demand for 5G backhaul solutions, particularly in India, and increasing global orders for military antennas.
A healthy backlog of orders and a strong tender pipeline suggested continued momentum into 2025.
Meanwhile, the Mottech division saw growth in North America, South Africa, and Israel, despite geopolitical challenges in the Middle East.
European sales lagged but showed promising pipeline opportunities as water conservation gained focus.
The China office closure was meanwhile completed in the third quarter, due to market instability.
MTI said its Summit division faced a slow third quarter due to shipping delays, but added that sales were expected to recover in the fourth quarter as backlogs were cleared.
The division's strategic distribution agreement was extended until 2026, providing long-term stability.
On the leadership front, MTI announced that Dov Feiner, executive board director and general manager of the antenna division, would step down from his role in April, transitioning to a non-executive director position.
He would be succeeded by Eran Shmulinson, currently vice-president of sales and marketing for the antenna division.
MTI said it anticipated declaring a final dividend alongside its full-year results in the first quarter of 2025, and maintained confidence in its growth prospects, supported by a strong balance sheet with $4.9 million in net cash.
"We have completed a successful third quarter and we are well placed for the full-year and beyond," said chief executive officer Moni Borovitz.
"Defence is one of our three key sectors and global demand has been high, reflecting the concerns of many Governments regarding the more unstable world we now live in, a trend which is expected to continue.
"The fourth quarter has begun well and we anticipate continuing to grow the business and delivering an attractive return to our shareholders."
At 1530 GMT, shares in MTI Wireless Edge were up 0.71% at 45.32p.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN