Batm Advanced Communicat... Share Discussion Threads

[car1pet] 24/8/2022 17:35

Well we should see an RNS for the 5.5m and found out who has sold. I don't know what you are smoking FSE - 80p dream on. I bought it the low 20s a few years ago and its heading back there. The bio medical business is a mess and is being outsmarted by better companies. The telco is tiny. The only hope is that a bigger company can see some IP value in some of the assets and buys out but they won't pay much.
What a dog. Why didn't I sell 12 months ago!!!

[kooba] 24/8/2022 17:20

As pointed out earlier the Shore note today has reduced revenue forecast for current year from $158m to $147m so meeting market expectation might be a moveable feast !!We adjust our model for FX movements for the full year accordingly, allowing for the full impact of current FX rates for the H2 period. This sees a c. $11m impact on reported revenues (now at $147m for FY22F) and a $1m impact on EBITDA (now at $17.1m). The balance sheet also sees the impact of FX, but we continue to note the very strong net cash & investments position and liquidity. Our revised model is shown overleaf.

[kooba] 24/8/2022 17:11

Yep big print but the total volume doesn't add up...ie where's the other side of the 5.5M.

[fse] 24/8/2022 17:08

Edited to add Marom comments at the end...

No denying this has been a totally cr*p period, but is it possible or likely that its the same for BATM as just about all companies in these sectors that have seen in most cases large drops in sales.

Its worth looking at this excerpt comments today by Marom.
Why is his head space different from ours ?
Marom sees the underlying state of the business and the level of impact these new technical solutions are having.
Investors see the share price and a horrid period.

So why can he smile whilst we are all grimacing (myself included)

Remember they are expanding their diagnostics supply to meet a back log of non covid tests, this is very much inline with their plans in establishing a diagnostic platform that is part of the future of modern medicine.
Present solutions from Adaltis/Ador are already advanced the new RCA is next level and appears to be on track.

Apparently they are set to deliver 2 more large Agricultural ISS units which supply/logistics have held up.

Cyber is very busy indeed.

Telco are seeing first revenue from Edgility.

Heres the comment from Marom

"First-half results from BATM Advanced Communications Ltd (LSE:BVC) could best be described as nuanced, though chief executive, Dr Zvi Marom, called them "solid".

Crucially, the group, whose operations span networking, cyber and diagnostics, said it was trading in line with expectations for the full year.

Revenues for the six months ended 30 June 2022 were down US$6.7mln at US$57.5mln.

This largely reflected the performance of the bio-medical unit and, specifically, the downturn in demand for its diagnostic products as the Covid threat receded.

Growth is expected to return to this division in the second half, investors were told.

Elsewhere, there was an increase in sales from the smaller networking and cyber operation, which grew 44% in the first half.

BATM's revenue drop was accompanied by a fall in the gross margin which resulted in a decline in underlying profitability (EBITDA) to US$3.7mln from an exceptional US$22.7mln a year earlier.

CEO Marom said the group had entered the second half with "sustained momentum and a significant backlog to be delivered against".

“The cyber unit expects to deliver solid growth and the networking unit expects sales to continue to grow in the second half of the year,” he explained.

“The bio-medical division is expected to return to growth in the second half as diagnostic products remain in demand across the globe.

“Whilst mindful of the potential impact of global supply chain challenges, and the need to secure further contracts, particularly in the bio-medical division, the group remains on track to deliver revenues for the full year 2022 in line with market expectations.”

[cupra kid] 24/8/2022 16:57

That after hours trade could explain some of the fall today. Seller out now? Let's hope so.

[pockstones] 24/8/2022 16:19

Shifty the Rat had this right the share price is the going rate for distrust

[kooba] 24/8/2022 16:18

Thanks for feedback even though not that encouraging. The whole buy back thing is bizarre why push shareholder approval through quickly and then not use it? They are not citing any issue at all just they don't want to use it at the moment...do they really believe that the shares are not reflecting value?Shore are indeed expecting a far better second half..though that might depend on FX.They have 1.5p eps in for 2022 ( 3.3p) 2.6p for 2023.But the company basically broke even in the first half and there was significant cash depletion ...what growth?The reputation for not being able to grow a sustainable business but always being full of so much promise continues year in year out.Yep LO and the NEDs need to be seriously asking some questions on executing coherent strategy...if they are allowed that is !!

[fse] 24/8/2022 16:12

A lot to unpack here.
For those looking for a huge uptick in revenue then this is a very real disappointment.
For those able to put this all in context the picture is somewhat different.

BATM revenue is down but how does it stack up against their peers for the period.
They actually did better than most in their respective sectors. Companies operating in these sector saw large drops in revenue with diagnostics particularly badly hit.
20% to 40% drops were not at all uncommon. BATM falls are at the lower end of this range.

So what real and whats BS and whats troubling and whats positive. IMO.

(1) References to currency problems are very real and a huge issue for the company that reports in $US during this period. remember this is the period we saw the Euro and $USD go to parity. In times of war the $US is seen as a safe haven. This most definitely made a difference to their bottom line.

(2) Components supply and logistics held up business completions in every industry I am not aware of anyone who escaped this. We are still recovering from the Pandemic disruptions and now we have a war. Marom referenced this in todays interview.
In this respect they are again better off than most but it is a problem and it did effect sales completions.

(3) Back log of orders is encouraging insofar as they have the business. BATM have opened up new facilities to try to deal with this. They are not a manufacturing company and I would agree that Sales/Marketing/production are an underperforming part of their business. Its an important part of their business and in this arena I side with car1pet comments that they are lacking in this respect. A lot of this is the size of the company but still it is an issue.

(4) Diagnostics division got hammered expectedly from reduction in Covid testing plus lower prices for these kits.
BATM have seen a very real uptick in non covid testing which is what they want to see. The company made money out of Covid tests because they could not because they planned to. The start of the share price slide was in respect to markets view that huge profits out of Covid testing would not be repeated.
Diagnostics will recover as new age medicine simply cant function without it.
The diagnostics division did not better or worse than I had expected.
There are also supply problems here for certain reagent components which is impeding sales.

(5) Telco systems has been through a beyond torrid period as it re defined itself from the ground floor up. This metamorphosis has been achieved. Telco has been a highly problematic underperforming division for the company.
Edge computing and virtual networks and the architecture and software that is required to make this operate is only now starting to be rolled out.
The downside is that it has been a drain running all these POC's with tremendous effort and cost translating into very meagre starting revenues when they are signed.
This is nevertheless a cumulative revenue feed.
Telco have a very real shot at converting this but its not there "yet".
Marketing and Sales once again not a strong point but they are winning business.

(6) Cyber was the big out-performer here which probably came as a surprise to none. Marom cited this as doing very well indeed and I would expect this to be the case going forward until they decide the time has come to sell it on.

(7) FY 2022 to be inline with Market expectations. Not sure what the expectations are now but I do feel its fair to say that H2 in 2022 will be a lot stronger that H1 and its well within their capacity to achieve this. H1 was disappointing but was not a disaster and certainly no worse than a plethora of companies reported in this period.

So whats the bottom line ....
BATM have reported a set of figures that have been negatively effected by the Pandemic, Currencies, Components, Reagent supplies, War.
There is nothing fundamentally negative with the interior workings of the company other than matters outside of their control which should improve.
I still have BATM on a FMV @80p assuming they can close the gap in H2. World situations permitting !

Last comment would be that they do need to sort these indexes out and they do need to get some better advice in this respect.

[car1pet] 24/8/2022 16:03

I attended the webinar. Chat line was unavailable so no questions were possible. They said the buyback was one of many options to improve shareholder value and no plans to execute at the moment. Supply chain issues and currency fluctations were cited as reasons for problems. Cityfibre was mentioned as a pilot but only "hopeful" it would lead to orders. The usual BATM jam tomorrow presentation. It was shocking. Because there were no questions it ended after 20 minutes. Lombard Odier should step in and take action to move Marom out.

[kooba] 24/8/2022 15:22

Me thinks that Israeli investors being the main sellers over the past few months were far more clued up on trading than here in the UK. We certainly now know why there was no post index exit recovery as normally found , but continued TA selling into the close last night! Would be interesting if figures were available just how much is left being held through TA investors.Anyone manage to dial in ..unfortunately the share price doesn't indicate anything convincing in terms of value emerged. But would be fascinated in any Q&As posed.

[emeraldzebra] 24/8/2022 14:59

It’s careering down hill like a greased pig. We’ll be “topping up”at 15p at this rate. Would have hoped that much of the disappointment in the results had already been anticipated and baked in to the bombed out price.

[landskermichael] 24/8/2022 14:55

Down 8 percent now on an amount of shares sold that wouldn't buy you a house in Birmingham let alone London , don't you just love the stock market

[kooba] 24/8/2022 14:09

Not many situations where a CEO is still in post after over 25 years when the company's market cap is half its retained losses...normally shareholders would have become more activist in their governance. He has his work cut out in the second half to regain investor confidence and deliver on the many promises. June 2019Dr Zvi Marom, CEO of BATM, said: "We are delighted to have raised $18 million through the successful completion of this fundraising. We thank our existing investors for their support and welcome our new shareholders. This is an exciting time for BATM with great progress being made across our business units, and particularly with our NFV activities and molecular diagnostics. We look forward to utilising these funds to accelerate our growth and to delivering value for our shareholders."At 42.5p..

[car1pet] 24/8/2022 12:49

LandskerMichael I'm afraid I have to disagree with you about Marom. This company is a plc and 33% of the investors are individuals. He has a duty to the shareholders and has failed. This company is not owned by Marom. I'm happy for him to be on the R&D management team but he has to step down as CEO. Enough is enoug

[landskermichael] 24/8/2022 12:35

Marom is BATM , he is going nowhere , if you have faith in him then top up , if not then sell , this in the twenties looks as safe an investment as I can see , that's not to say it could not go lower of course , first rule of investing is the majority are always wrong , as those panic selling today will find out

[car1pet] 24/8/2022 12:18

Kemche what do you mean by Conservative? 29.25 is not what I want to see. Marom should resign. He was and never will be a CEO

[paulisi] 24/8/2022 12:02

Can someone post updates from webinar as to give 6 hours notice is not acceptable.Key questions:BuybackShare price dropLack of RNSSplit of business( as mentioned by Zvi last year in interview)Etc

[kemche] 24/8/2022 11:54

Price looking more "conservative" now.

[landskermichael] 24/8/2022 11:42

Zvi looks happy and he's a camel now , I'm topping up , all the suckers selling today will be back in when it higher

[car1pet] 24/8/2022 11:35

Webinar at 13.00 today. Link is available from Luther

[nellyb] 24/8/2022 11:10

proactive interview with zvi now online.

[paulisi] 24/8/2022 11:03

Not enough notice - not acceptable..

[shareholder7] 24/8/2022 10:53

Time for new management feel I have been mislead by CEO

[owenski] 24/8/2022 10:36

The didn't carry out the buyback as expected.

The so called divi is worthless by the time the Israeli tax nonsense is sorted.

Listing on TASE is a big mistake too.

Investors were expecting news on the security and telco front and that seems slow coming.