|Mti Wireless Edge
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MTI Wireless Edge Share Discussion Threads
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|A small contract win for Mottech in Tanzania. Hopefully, the first of many.|
|On this occasion Sladdjo knows no more than the rest of us re the RFID figures.
The problem with the antennae business has always been a lack of forward visibility. The recent contract wins mitigate the lack of visibility, but they are only small contract wins, so the basic issue remains.
What's interesting is that despite the increased turnover, inventory and receivables haven't bloated. Cash generation has been very good this year.|
|The good news just keeps coming.|
I've just voted your post up. Good complete update.
The RFID commment is intriguing and encouraging, but means little without figures behind it .
Sometime ago they were doing RFID trials with Aerorflot; before that they were doing trials wth a major retailer. I believe the latter were not unsuccessful technically, but the potential client didn't then go ahead. I'm going to contact Sladdjo, who is a regular attender of MWE meetings and has got to know the management, to see if he can shed any further light.
All the best|
Agree Q3 was very similar to Q2 with strong cash generation of $500k. A strong quarter is now a $6m quarter whereas in the old (pre-Mottech) business it was more like $3.5m.
Cost of sales was slightly higher in Q3 vs Q2, so margins at 36.5% vs a whopping 40% last time. Still very healthy though and probably reflects more of the lower margin antenna work.
If it wasn't for the duff Q1 the FY would be a cracker. With 4 good quarters the new business should be throwing off $2m cash per year.
$2m = £1.6m nowadays.....so what price should a wireless tech + water tech company currently be valued at? Probably more than the £13m mcap we're currently sat on!
A first mention of RFID doing well (finally!) plus recent contract wins and the perennial positivity on 60-80Ghz are all good news.
Those contract announcements were:
May: 0.5m EUR for Mottech by EOY 2016
June: 1.8m USD for Military antennas over 26 months
September: 0.7m USD for Military antennas over 24 months
Military antennas have always been better margins than standard antennas and Mottech business is also better margin, with potential for what sounds like 0.3m EUR service work in 2017.
And yet MWE is valued at less than its assets.
|It is a very bullish update - should see us into the 30s before too long, especially given the intrinsic asset value ps.|
|·3rd quarter figures show a strong revenue and profit perfomance at Mottech and the antenna business just in profit. On these figures, annual turnover would be north of $25m.
Net assets per share have risen to 28.9p, helped by the strength of dollar vs pound.
The management say there was a strong performance from RFID. If so, that's a new development, but as no breakdown is provided, it's not posible to say what they mean.
Overall, good cash flow has reduced net (and gross) debt.
These look to me still significantly under-valued. The management also make confident noises about upcoming performance, but again without specifics.
Really 3 months is very little time, but things are going in the right direction.|
|Nice recovery here.|
|Hi Columbarius, I'm pleased to have been of some help.
The second contract win with another new European customer in the military segment is hopeful for future performance in the antenna división, which has been in and around break even for several years. Both new contracts are small, but bring the promise of repeat business.
For me, downside here is limited by the 26.5p net tangible assets.
There is always a slight political risk associated with Israeli companies, however.|
|Thanks for the clarification CJ. I'd missed that useful note during a quick read of the accounts and after further research I bought in.|
|Good news, let's hope these new customer contracts lead to fruitful long term relationships.|
|Of course, the increase in distribution costs were due to Mottech! How could it be otherwise? Mottech was acquired one month before the end of last years 1st half. So you are comparing six months distribution costs at Mottech (this Year) with one month last year.
But the poor profit performance was down to a poor first quarter at the antennae business. This was clearly signalled at the end of the first quarter and is clearly visible from the half year results.
Look in particular at the segmental analysis on page 9.
Revenue at Antennae first half was $5.304m Loss was $345k. (In the first quarter Antennae made a loss of $400k.)
Revenue at Mottech was $6.021m Profit was $835k. So profit margin at Mottech was about 14%.
So profit margin at Mottech is much better than anything I can remember the antennae business ever doing and isn't bad in absolute terms.|
|Your antenna theory doesn't explain the big hike in distribution costs as they're sales related and antenna sales were weak in Q1. The hike was due to Mottech and time will show it to be a low margin business.|
|Hi Columbarius, if you read back over the first quarter report, you will see that the antennae business had a very poor quarter. This accounts for the flat eps for the first half.
In the second quarter, the antennae business recovered and profits for the year are likely to more than doublé those for the first half.
Company guiidance - and indeed looking at segmental outcomes in the latest reports - suggests that Mottech is trading more than satisfactorily. Regards.|
|I've not seen any news to that effect.|
|Perhaps the Mottech acquisition isn't going as well as was hoped. It has added revenue but unfortunately general, administrative and especially distribution costs have grown at a quicker rate and are hurting the bottom line.|
|What happened here?|
|Chart continuing to develop nicely, following the double bottom, we now seem to be achieving higher lows and highs.|
|Looks like we have a double-bottom|
|A pleasing half year report|
|What is the 26.5p divi. Big Typo?|
|AIM Morning Risers:
14th July 2016
|Shareprice well down from recent highs. An upward correction likely on any positive news.
The reaction to 1st Q results made no sense on fundamental grounds. And I was very happy to buy more shares in the mid-teens. Net tangibles at around 26p per share on Sterling weakness.|
|Get ready for GWMO liftoff. Buying been going on in last few days ahead of news. Get in before the crowds for a GWMO multibagger. Gold copper silver drilling commencing.|
|Dollar revenue, possible takeover? I see this as a cheap stock with great growth capability / potential. Qtr reporting must be tricky for small companies as cash flow is lumpy by nature and harder to smooth out