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BATM adjusted operating profits rise

By BFN News | 09:08 AM | Wednesday 08 March, 2017

BATM Advanced Communications posts adjusted operating profits of $0.9m for the year to the end of December - up from $0.7m in 2015. Revenues decreased to $90.4m (2015: $97.1m), mainly due to a reduction in sales in the Networking and Cyber division. The blended gross profit margin for the year was 31.4% (2015: 31.8%). This decrease was mostly due to a decrease in the gross margin of the Pathogenic Waste Treatment and Sterilisation unit as a result of the transition of that business. Sales and marketing expenses were $14.3m (2015: $14.4m), representing 16% of revenues compared with 15% in 2015. General and administrative expenses were $9.6m (2015: $9.6m), representing 11% of revenues compared with 10% in 2015. R&D investment in 2016 increased to $7.6m (2015: $6.7m). This increase of $0.9m was primarily due to investment in the Cyber unit. Chief executive Dr Zvi Marom said: "We are pleased with the commercial advancements made by most of our businesses in winning new customers, laying foundations for a sustainable recovery and growth. "In particular, the Diagnostics unit saw a solid year-on-year increase in revenues as the unit increased the number of machines sold to over 500. "Additionally, there is a significant inherent value in the Group with Adaltis valued at $58m post investment by our Chinese partner and a strong IP portfolio with over 40 patents across BATM. "Looking ahead, the Group remains optimistic in its outlook due to the visibility of revenues from contracts already signed as well as growth in the Bio-Medical division. "The Diagnostics business is expected to continue to grow as it is well positioned to capture market share in the Chinese diagnostics market. "The investments made in the Pathogenic Waste Treatment and Sterilisation unit in 2016 are expected to show positive results in 2017. "The Cyber unit is also expected to grow through the addition of new customers as well as delivery on the contract delayed from last year. "Consequently, the Board looks to the future with increased confidence." At 9:08am: (LON:BVC) BATM Advanced Communications Ltd share price was -0.75p at 18.38p Story provided by

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