Trading Update
01 March 2011
MTI Wireless Edge Ltd ('MTI' or the 'Company')
Trading update
MTI Wireless Edge Ltd. (ticker: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband, announces an update on its results for the year ending 31 December 2010.
A preliminary draft of the results for the year ended 31 December 2010, which has not yet been reviewed or audited by the Company's auditors, suggests that while sales for the final quarter of last year were as indicated in the trading update issued by the Company in early January of this year (i.e. approximately $3.8 million, representing over 18% growth in the second half over the first half of 2010) the Company has incurred unexpected negative cost variances amounting to approximately $350K. Consequently, the Board now expects that the full year pre-tax result for the year ended 31 December 2010 will show a loss of approximately $650K.
Initial indications are that most of these cost variances are one-off rather than recurrent. The Company is seeing a continuation of the improved outlook for sales in 2011 over 2010 and the Company's current order book stands at $7.2million, compared to $5.5 million, as reported in the January 2011 trading update.
Consequently, whilst the Board is disappointed at the cost overruns (which have only just become apparent), it believes that 2011 trading will be broadly in line with its previous expectations.
The preliminary results for the year ended 31 December 2010 are expected to be announced during mid March 2010.
Enquiries
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MTI Wireless Edge Ltd |
+ 972 3 900 8900 |
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Moni Borovitz, Finance Director |
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Dov Feiner, CEO |
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Allenby Capital |
+44 203 328 5656 |
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Nick Naylor |
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Alex Price |
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Threadneedle Communications |
+44 20 7653 9850 |
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Graham Herring |
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Terry Garrett |
About MTI Wireless Edge
MTI designs and manufactures flat panel antennas, largely supplied to international OEMs of fixed broadband wireless access systems. With over 30 years of technical 'know-how', flexible high volume manufacturing capabilities and low failure rates, MTI's antennas now comprise approximately 25% of the global fixed broadband wireless antenna market. In addition, the Company has successfully developed products for new commercial applications as wireless systems become increasingly prevalent in new markets.
This information is provided by RNS