Batm Advanced Communicat... Share Discussion Threads

[tradeterminator01] 29/8/2023 10:21

Same old same old boring narrative from you car1pet. No matter how brilliant the news, you always have something negative to say, usually acting as Kooba's parrot.

[car1pet] 29/8/2023 10:12

I agree with Kooba. Marom's puppet has been in charge since January after several years as FD. Nothing has changed. same old POCs its always "jam tomorrow".
The board need to be replaced by proper business people who know how to run and drive a business.

[tradeterminator01] 29/8/2023 09:55

Kooba your comment about the lack of interest received. Do you have any comparable company’s who have shown significant interest received in the 1st 6 months of ‘23. Useful for us to compare. It should be noted BATM operate in 11 countries not sure the cash is held centrally more likely locally. Your answer would help us to make a sound judgement.

[bigjon1] 29/8/2023 09:34

Very impressive H1 results for BATM. The key takeaway for me is the strong growth (especially in carrier Ethernet as well as the expected further orders of CityFibre by end of year once it is complete). Additionally, as echo has mentioned, BATM continues to hold a strong cash position which was expected to dwindle during H1 but remains strong.

[echoridge] 29/8/2023 09:18

I see you kind of ignored what I wrote on cash, kooba, but that's ok. The small fall in net cash was actually a pretty big positive for me, as I wrote, and I think the results generally set us up for a solid chance for an upgrade in profits and net cash for the full-year. But that's what makes a market, I guess. However, I do think your somewhat extreme focus on 'interest income' is a bit weird in my view. First off, they clearly have a material amount of their cash in securities where you wouldn't be booking higher interest income from higher rates obviously. And for any cash in bank deposits, I reckon you know that despite base rates rising significantly over the past year+, bank deposit rates are the last to move and will be grinding (very) slowly higher. As a result, I wouldn't expect to see anything material in that income line.

[kemche] 29/8/2023 08:36

Classic treeshake. Once the market has digested the transformational news then the whoosh will not be far off. Look out for the Israeli lines, the funds and the US open. The interest income on the vast amounts of cash alone justifies a higher price.

Don't be short!

[kooba] 29/8/2023 08:19

I'm not entirely sure you and i are looking at the same book let alone page...good luck out there.

[susanfrench] 29/8/2023 08:01

K - BATM can't be painting the same picture and narrative - it would then be full of coronavirus !!Perhaps it's you who's not turning the page !!

[kooba] 29/8/2023 07:49

Looks same old BVC...painting the same picture.Pedestrian recovery from some huge profit and revenue warnings over last 18 months.Seems no change in strategy or focus at all...the same narrative.As to financials suggest everyone does not get hooked on the headlines and looks at the financial review.Question i have for a company sitting on cash is why we get virtually no net interest income..with rates rocketing there has been an improvement ( which is material to overall headline performance) but we still get virtually no income from cash..they were quick to blame past performance on fx which has now largely unwound. Why are we not seeing a £2m net interest income?Cash has also further reduced over the period.Uninspiring for me.Financial Review $m H1 2023 H1 2022 Revenue 60.2 57.5 Gross margin* 35.3% 31.6% ------------------- -------- -------- Operating profit* 2.2 1.6 * Adjusted to exclude amortisation of intangible assets and share-based payments. For further detail, see the Financial ReviewTotal Group revenue for the first half of 2023 increased to $60.2m (2022: $57.5m), reflecting growth in both the Networking & Cyber and Bio-Medical divisions .On an adjusted basis to exclude the amortisation of intangible assets, gross margin improved by 370 basis points to 35.3% (H1 2022: 31.6%). On a reported basis, gross margin increased to 34.9% (H1 2022: 31.2%). This reflects improvement in the gross margin in all of the Group's units.Sales and marketing expenses were $9.5m (H1 2022: $8.0m), with the increase reflecting activities to support the higher revenues and continue to build capability to support future growth opportunities. General and administrative expenses were $7.7m ( H1 2022: $5.4m). The increase reflects share-based payments, which are non-cash, being $1. 2 m compared with $0.1m in H1 2022. R&D expenses were $3.3m (H1 2022: $3.4m).On an adjusted basis, to exclude the share-based payments expense and amortisation of intangible assets (see Note 3), operating profit grew by 36.3% to $2.2m (H1 2022: $1.6m) due to the increased revenues and margin. On a reported basis, the growth was offset by the increase in non-cash share-based payments resulting in an operating profit of $0.6m compared with $1.3m for H1 2022.As a result of the above, EBITDA (excluding share-based payments) increased to $4. 4 m for H1 2023 compared with $3.8m for H1 2022.Net finance income was $0.1m compared with an expense of $0.6m for H1 2022.Profit before tax on an adjusted basis increased to $2.3m (H1 2022: $1.0m) and to $0.7m on a reported basis (H1 2022: $0.6m).The Group recorded a $0.2m tax expense (H1 2022: $0.3m tax income).On an adjusted basis, net profit after tax attributable to equity holders of the parent was $1.7m (H1 2022: $ 0.5 m) and $0.1m on a reported basis (H1 2022: $0.1m ), primarily reflecting the tax expense compared with a tax income in the previous year. As a result, profit per share on an adjusted basis increased to 0.39c (H1 2022: 0.12c) and to 0.02c (H1 2022: 0.03c) on a reported basis.As at 30 June 2023, inventory wa s $37.5m (31 December 2022: $34.5m). Trade and other receivables were $3 4.2 m (31 December 2022: $36.5m) . Intangible assets and goodwill at 30 June 2023 were $19.3m (31 December 2022: $18.5m).Property, plant and equipment and investment property was $16.2m (31 December 2022: $15.9m).Trade and other payables was $43.3m (31 December 2022: $46.3m).Cash inflow from operating activities was $0.5m compared with outflow of $5.2m in H1 2022. This significant improvement reflects a decrease in working capital and a strong emphasis on collections.At 30 June 2023, the Group had cash and short-term investments of $41.9m (31 December 2022: $44.2 m; 30 June 2022: $47.4m).

[paulisi] 29/8/2023 07:47

Cash plus inventory plus goodwill accounts for around 90% of the value of the business.Surely undervalued.

[echoridge] 29/8/2023 07:44

Seems Shore Cap agrees: '....The Networking & Cyber and Bio-Medical solutions technology specialisthas announced interim results for its first half to end June this morning.These are very pleasing to us, in-line with our forecast model, confirming good progress across the Group and reflecting the new focus of development on core technologies. BATMconfirms that expectations for the full year are unchanged. We therefore retain our current forecasts.Interim resultsRevenues for H1 rose by c.5% to $60.2m, progress across the businesses in the Group is noted and in-line with the evolving strategyfocusing upon key developmentareas as set out in BATM’s CMD held on 06 June. Notably, the Group gross margin increased by 370 bps to 35.3% to 35.3%, with a particular expansion in the Networking & Cyber division (growing by c.11% points to 51.2%), in part reflecting mix –but excellent progress.EBITDA rose by c.16%to $4.4m. D&A costs were 7% higher than for last year, reflecting ongoinginvestment in Group development. Share based payments, noting management transition, were $1.2m higher in the period-as previously guided. PBT emerged at $0.7m. With an operating cash inflow noted,investment continues to flow into business developmentandBATM continuedto see a net cash outflow, but only at c.$1.4m through H1. With stronger revenue growth anticipated in H2, we expect a stronger free cash flow performance to begin to emerge. As at end June,BATM had cash and short-term investments of $41.9m...'

[echoridge] 29/8/2023 07:40

Agree with the previous takes: solid results, no nasty surprises, with a real clear path to a (significant) u/g full-year in H2. Right off the bat though, my biggest comfort/relief is cash. My main worry for these interims was the not-at-all-unreasonable 'fear' that H1 would see a big draw on cash as the Company ramped up investment in sales (basically hiring more bodies in their targeted growth businesses) and marketing to really leverage its opportunities in Networking, etc. If that had happened, I wouldn't have been troubled but I worried the market would over-react. Instead there was only a mild decline in cash which is not only a 'relief' but augers well that the Company is on its way to being CF positive on the bottom-line by the end of this fiscal year.

[susanfrench] 29/8/2023 07:26

What's the right multiple for a profitable business involved in the cutting edge of technology ? If profits return to 2021 levels the multiple on the current share price would be 10 That seems low !!

[paulisi] 29/8/2023 07:20

Solid results, margins up.Multiple tier 1's undergoing POCNatlab still under development/starting POCneed contract announcements or details of sales of non urgent parts of the business

[wizzkid211] 29/8/2023 07:18

The current deployment with CityFibre is due to complete by the end of this year, and the Group expects to receive further orders from this customer

[resistance1] 29/8/2023 07:16

Good solid results IMHO. Note strong growth comment in Carrier Ethernet. Looking forward to see H2 building on these themes

[wizzkid211] 29/8/2023 07:12

WAKEY WAKEY

[wizzkid211] 29/8/2023 07:03

Moti Nagar, Chief Executive Officer of BATM, said: "We are pleased to announce a strong set of results for the first half of 2023. We achieved growth in all key financial parameters and operational progress in each business unit. We have also undertaken a comprehensive review of each business unit and their market opportunity, and now have a clear focus on which entities are core to the future success of the Group and that can drive a step change in our financial performance.

"Looking ahead, we have entered the second half of the year in a better position than at the same point last year, with sustained revenue momentum and a higher backlog. We expect to deliver year-on-year growth in Networking, with increased revenues from both carrier ethernet and Edgility. Our cyber business revenues are expected to be higher in the second half than in H1 as we ramp up delivery of our large contract won earlier this year. Our Bio-Medical division is also expected to continue to increase sales. As a result, we expect to report year-on-year growth for 2023, in line with market expectations."

There was improvement in gross margin for both the Networking unit and the Cyber unit respectively

[paulisi] 28/8/2023 18:18

The statement on Apr 17, gives me hope that the forward looking statement tomorrow will be very positive and edgility revenues will be ahead of expectations.I'm also hoping there will be further announcements on contracts released at the same time.

[wizzkid211] 28/8/2023 12:38

The edge computing market size is expected to grow from USD 53.6 billion in 2023 to USD 111.3 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 15.7% during the forecast period.

[fse] 26/8/2023 23:57

BVC 0.26 4.0% -14.5%
BATM Advanced Communications
undervalued75.2% UNDERVALUED

FWIW Todays score sheet from simply Wall Street

[echoridge] 26/8/2023 19:17

Though I’m not certain it was actually an iceberg order, I had no doubt at all it was a professional buyer, almost certainly an institution. As for continuing Tuesday, interims are very possibly out that morning (Wednesday also possible) so there’s probably going to be more for shareholders to focus on than just the possible continuation of our mystery buyer!

[bigjon1] 26/8/2023 17:21

My guess is it was an institutional player adding to their position. Few retail/individual traders have access to Iceberg algos (unless they do it manually but I highly doubt it). For those that don't know, Iceberg algos are used for 2 main reasons: to minimise market impact and to hide the true size of their order from sitting on the order book in plain sight. If it is institutional, they will often use the iceberg strategy over a prolonged duration, so will be interesting to see if the buyer continues on Tuesday.

[resistance1] 25/8/2023 22:49

Thanks for the intel and the effort to get it. Appreciated.