Batm Advanced Communicat... Share Discussion Threads

[resistance1] 02/7/2024 13:16

Just doing a bit of digging around on the market research. Interesting one Celare's cyber encryption solution as it uses hardware too, therefore the larger hardware encryption market is the most relevant one here: Global Hardware Encryption Market size was valued at USD 250.21 billion in 2021 and is poised to grow from USD 292.25 billion in 2022 to USD 866.66 billion by 2030, at a CAGR of 16.80%.

Clearly our solution is pitched probably at the market apex. Pure software encryption market is also forecast to grow at the same staggering rate. By having a multi-national partner, for once, we have a good chance of taking a significant slice of this massive market. You could easily see turnover in 3-4 years in the multiples of current BATM group figures on this commercial encryption product alone.

[kooba] 02/7/2024 11:13

Yes hope this all goes well...the issue on these partnerships tends to be more that you become dependent on the one customer ..the partner , who controls delivery. So can be a mixed blessing (see Nanoco today)Must say though if they did similar deals for ADOR and Edgility with majors i would have more confidence in them gaining traction even if there are implications for margins. The sales channels on Edgility hopefully are the issue not the technology, which seems to be effective with some repeat orders seen.

[resistance1] 02/7/2024 10:57

They normally dont pan out as BATM handle the sales. This is thankfully different

[kooba] 02/7/2024 10:34

This is a big shout.."BATM's current EV is in the $65m range. With net cash resources (ex-leases & deferred consideration) of c.$35m to fund the Group's development, along with this partnership, we feel that we can justify a higher Group EV just on the basis of Cyber alone - so ignoring the potential for Edgility, network products, Diagnostics, the Ador (NATlab molecular diagnostics) associate company, Eco-Med biological waste treatment and the other laboratory and medical distribution businesses in the Group."The problem is that the company and the broker are always super bullish and things don't pan out..clearly a good deal that i hope turns into very meaningful revenues not too far out.

[resistance1] 02/7/2024 09:56

Yes no doubt revenues in 2026. A $10bn turnover partner will not be thinking small on this, simply not worth their management time. Strikes me apart from a deal of this type for Edgility in N.America this is clearly the roadmap for ADOR Natlab. We know it has passed 1 clinical trial and with the others completing before end '24, next year we could see a partnership or with one of the medical equipment giants. Same as Oxford Nanopore which I keep banging on about.

[kooba] 02/7/2024 09:41

This is to be undertaken in three phases, with the first deliveries guided to commence through to end June next year. Separate, larger, orders are then expected to flow.This suggesting orders before the end of the 2 year phase i guess. Not clear when revenues might kick in.

[kooba] 02/7/2024 09:38

Ive got the shore note..every thing is great this is great the company is great..always is. Might read it in more detail now!

[echoridge] 02/7/2024 09:07

I've got the shore cap note and I'll share anything interesting in a few hours. Meantime, for me, I think this is a very useful deal - a JV in the Company's most immediately promising product area with a giant partner - in (beginning to) putting to rest both the obvious - the company's reluctance to do deals - but more interestingly, this idea that somehow Moti is not his own man and zvi continues to exert undue influence over his one-time CFO. The zvi that I remember when he held complete dominion over every move BATM made, may have flirted with a deal like this where he would have to give up at least some significant control in one of the core businesses that he lovingly midwifed into the world, but in the end his ego would eventually find a way to sabotage it or he would simply walk away altogether. As I've hinted at before, there is increasing evidence that this is Moti's company and he's prepared to even give up some control in a key business in order to create value - and in this lifetime! - for shareholders.

[resistance1] 02/7/2024 08:22

Definitely work in progress Echo. I’m not expecting much in terms of cash for disposals just a more focussed group. An acquisition to enable Edgility clearly one option another is a sales partnership, like this one. I will do some research later on the value of this branch of commercial cyber, remember we are talking encryption rather than other cyber defence aspects. This is squarely aimed at financial markets and key infrastructure. I wonder who the $10bn t/o player is any thoughts? Might be Far East?

[paulisi] 02/7/2024 07:56

Good newsCommercialisation of Cyber in progress Still to do:Commercialise ADORTier 1 contract for Edgility in North AmericaSale of non core business

[resistance1] 02/7/2024 07:37

Recently due the lack of significant deal news and the Gaza troubles this share has been valued purely on current financial performance (and a discount on asset book value) Hopefully now we will get valuations based on the growth potential of commercial cyber and in the near future for Edgility and Ador too. You also never know this cyber partner may want a piece of the cake too.

[echoridge] 02/7/2024 07:24

Indeed, resistance. Also should reduce any lingering fears around the shares about the coming results as even if the numbers are a little light (I'm still leaning towards a small beat as more likely), the company can now speak more ambitiously about trading since year-end and the prospects for this fiscal year.

[wizzkid211] 02/7/2024 07:24

resistance, the potential for the deal is huge, small BATM is partnered with a big company its the first time the government allowed BATM to sell their platform abroad

[kooba] 02/7/2024 07:23

Whilst this is obviously a positive and could be significant in years to come..it is again a small beer contract during a 2 year customisation phase.The fact a major wants to partner with them is great and would also solve the companys sales issues as they have a global network...once a product has been developed.So there is significant upside if the partnership runs as expected but no material sales for 2 years? We were looking for a commercial offering being available to market by the end of last year..then kicked down the road..now it appears nothing commercially available for another 2 years?It's a positive but meaningful sales appear a fair way away.In the development stage funded by the major Batm get about $1m a year. The long term more positive the short term delivery of increased commercial revenues from cyber not so much.

[resistance1] 02/7/2024 07:22

With the sales, marketing and distribution safely in the hands of proven pro’s surely this is the way to go too for Edgility. I’m
Pleased BATM realised that sales and marketing wasn’t their strength for the commercial cyber offering. As a result we will see more sales far faster.

[resistance1] 02/7/2024 07:14

Very pleased to hear this. No mention of the commercial partner but from their t/o seems significant. Potentially this could add a dramatic increase to 2026+ revenues and of course profits and also be a conduit for Edgility. Will be well received by market. Good play

[wizzkid211] 02/7/2024 07:05

BATM's encryption platform is both hardware and software solution!

[kooba] 01/7/2024 16:33

Fair do's would have to take your word for it...after he was on the Batm stand at a trade fair after stepping down which was then commented on and the post removed made me slightly concerned whether an ex founder CEO can be genuinely non executive in role when still directly connected to the company. I think that is the reason such moves are rather frowned on.Unfortunately Zvi is one of the few to have taken money out of the firm in the past 20 years..the directors do far better than the shareholders in the deal and the company still retains huge losses amassed over the years. It's just not been a successful investment ...whether that changes who knows but as things stand there is no clear route to rerating even to the higher levels seen over the past 2 years.

[echoridge] 01/7/2024 15:20

kooba - appearances aside, zvi has been entirely sidelined. He no longer has any relevant day-to-day influence on the company. He really has been sidelined. As for disliking CFO-for-CEO swaps, fair enough I guess, but the idea that because Moti was CFO for a decent stretch he is likely as responsible as Zvi for the current structure is a claim you've made before, but it is simply not consistent with how the company ran under Zvi. There was only one vote that counted then and it wasn't Moti's.

[fse] 01/7/2024 15:18

I think echo summed this up pretty well in the comments above. The markets have been highly suspicious of BATM being able to get Edgility out of the Lab so to speak and being used by customers, the last mile.
The war is having a very detrimental effect on a lot of Israeli interests particularly ones like BATM that are trying to develop new platforms.
Companies like Israeli Audio Codes a company BATM do business with are also trashed in the share price department.
Politically in Israel Netanyahu is not the man for the job. I think Naftali Bennet would have been a much better choice but the emergence of the right wing in Politics cant be underestimated.
BATM exclusion from the Russell Index also IMO is having an outsized effect and its not sorted out.
One of the catches with Edgility is that even if they are getting success here it will not meaningfully contribute to the bottom line for a while yet as this is a technology that is only starting to get used. We should on the other hand at least see an increase in this area with H1 2024 results.
I do feel that BATM should communicate with their shareholders better. The valuation of the company is absurd.

Added:
Noticed this in the latest awards release which infers that Telco systems received the award from work they have already demonstrated with existing clients.
ergo.... hopefully they are doing business we just dont know how much.

"The Intellyx Digital Innovator Awards are given to vendors helping their customers navigate the digital transformation journey. The winners were chosen based on their ability to help organizations drive business growth, modernize their operations, and improve customer experience."

source. If you click on partners you will see audio codes I referenced above. Their share price is at 20% to 25% of previous levels despite the business doing Ok. They are an Israeli company.

[kooba] 01/7/2024 11:52

There is virtually no way the company can issue shares down here however appealing an acquisition is..they have repeatedly opined the shares are undervalued ( far higher) they trade at a significant discount to stated book value here too. They have some cash..the cash they said they would use to enhance shareholder value through a share buyback of 44m shares ..then forgot to do it.All this not buying shares back..directors not buying shares..what does it tell anyone about what the company really thinks of the underlying deep value...actions speak louder than words for me.