BATM Advanced Communications Ld First enterprise customer for NFV with $2m order (4829L)

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RNS Number : 4829L

BATM Advanced Communications Ld

13 September 2021

LEI: 213800FLQUB9J289RU66

13 September 2021

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM receives $2m NFV order from first enterprise customer

Global construction materials company, CEMEX, selects Edgility OS for company-wide virtual operating system

BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that it has signed a contract with CEMEX S.A.B. de C.V. ("CEMEX") (NYSE: CX), a leading global building materials company with annual sales of $13bn, to provide Edgility OS, the Group's network function virtualisation ("NFV") operating system. CEMEX is the Group's first enterprise customer for its NFV solution. The contract is expected to be worth approximately $2m with revenue commencing by the end of the current year. The Edgility platform will enable efficient communication between CEMEX facilities worldwide, connecting its thousands of locations.

CEMEX has selected Edgility OS as the virtualised operating system for its new communications network that connects all its sites throughout the Americas, the Caribbean, Europe, Africa, the Middle East and Asia. Alongside solutions from other providers, CEMEX is upgrading its infrastructure from a wide area network (WAN) to a software-defined wide area network (SD-WAN) based on Edgility OS. By adopting an SD-WAN network, which uses virtualisation technology to decouple the network from hardware, CEMEX will experience benefits such as reduced running costs, energy consumption and carbon footprint; simplified and more efficient network management; optimised performance; and scalability to grow as required.

Edgility OS, which is a product offered by the Group's Telco Systems subsidiary, is provided under a licence model (with each endpoint requiring a licence). The Group expects to receive revenue of approximately $2m over a five-year period and anticipates CEMEX utilising over 100,000 monthly licences throughout this period.

The selection of Edgility OS by CEMEX followed an extensive proof-of-concept, during which the Group's R&D team developed and implemented several bespoke technology features to meet the customer's requirements. Edgility OS was also selected for its ease-of-use - being simple to deploy, maintain and integrate with solutions of other providers across the network.

Dr Zvi Marom, CEO of BATM, said: "We are delighted to have been awarded this contract from CEMEX for Edgility OS, which is an excellent endorsement from such a large corporate. CEMEX is a company generating $13bn in sales with a vast global presence, and we are very proud that they have chosen us to provide their operating system as part of their network upgrade. The selection of Edgility OS follows a lengthy proof-of-concept during which we demonstrated the strength of our offering and our ability to quickly develop any technology solution required to meet the customer's demands.

"This also represents a key milestone as our first enterprise customer for our NFV solution. As industry adoption of SD-WAN increases with organisations upgrading their architectures to take advantage of the technologies available today, we expect to receive more orders for Edgility OS from enterprises and the telecoms and network providers that service them. We believe this represents a significant growth market for BATM, and one that is high margin in nature, and we look forward to continuing to report on our progress."

About CEMEX

CEMEX (NYSE: CX) is a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. For more information, please visit: cemex.com.

Information regarding CEMEX reflects operations and assets as of 31 December 2020.

Enquiries:

 
BATM Advanced Communications 
Dr Zvi Marom, Chief Executive Officer                           [phone] 
Moti Nagar, Chief Financial Officer 
 
 
Shore Capital 
Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory) 
 Henry Willcocks (Corporate Broking)                            [phone] 
 
 
Luther Pendragon 
Harry Chathli, Claire Norbury                                   [phone] 
 

Forward-looking statements

This document contains forward-looking statements. Those statements reflect the current opinions, evaluations and estimations of the Group's management, and are based on the current data regarding the Group's business as is detailed in this document and in the Group's periodical, interim and immediate reports. The Group does not undertake any obligation or make any representation that actual results and events will be in line with those statements, and stresses that they may differ materially from those statements, due to changes in the Group's business, market, competition, demand for the Group's products or services, general economic factors or other factors that can influence the Group's business and results, and due to information and factors that are currently unknown to the Group's management and that, if known, would affect the management's opinions, evaluations or estimations. The Group will report the actual results and events according to its legal, accounting and regulatory obligations, and does not undertake any other obligation to report them or their deviations from the forward-looking statements, or to update any of the forward-looking statements in this document or to report that it is not valid anymore.

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September 13, 2021 02:00 ET (06:00 GMT)