We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mti Wireless Edge Ltd. | LSE:MWE | London | Ordinary Share | IL0010958762 | ORD ILS0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 42.00 | 41.00 | 43.00 | 42.00 | 42.00 | 42.00 | 30 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Communications Equip, Nec | 45.63M | 4.05M | 0.0458 | 9.17 | 37.13M |
From Apr 2019 to Apr 2024
TIDMMWE
RNS Number : 8911N
MTI Wireless Edge Limited
14 May 2018
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)
14 May 2018
MTI Wireless Edge Ltd
("MTI" or the "Company")
Financial results for Q1 2018
MTI Wireless Edge Ltd. (AIM: MWE), a market leader in the manufacture of flat panel antennas for fixed wireless broadband and a wireless irrigation solutions provider, today announces its unaudited results for the three months ended 31 March 2018.
Highlights:
-- Revenues decreased by less than 1% year-on-year to $6.16m (Q1 2017: $6.21m) -- Profit before tax decreased year-on-year to $166,000 (2017: $233,000)
-- Earnings per share doubled year-on-year to 0.91 US cents (2017: 0.43 US cents), due to a large tax income credit.
-- Cash flow from operations tripled to $1.6m (2017: $0.5m).
-- Shareholder's equity grew during the period to $20.6m (31 December 2017: $20.1m), equivalent to 27.5 pence per share*.
* Calculated at GBP/$ rate of 1.35
Dov Feiner, CEO of MTI Wireless, commented:
"During the first quarter of 2018 we continued to see good progress in meeting our internal goals in both segments of our business. In our wireless controller segment, via Mottech, we see opportunities to grow the business in the various geographical areas we are now focusing on, including North America and China. In the antenna segment we continue to see good demand in our military, RFID and Millimetre Wave solutions. Given the current orderbook and pipeline of opportunities in both segments, we have a strong belief that our growth will continue in 2018 and beyond.
We finished the first quarter with operational profits below last year's equivalent profit, but this was due to us taking a calculated long term view of the business and increasing the investment in development and sales efforts. We believe that during the reminder of the year we will achieve our goal of increasing revenue and profits year on year.
Pleasingly our EPS has doubled in the first quarter due to large tax credit relating to future tax relief that we are entitled to in our operation in India. This is a result of a change in the tax regime which has allowed us to reduce our tax liability.
We have recently announced a proposed amalgamation with MTI Computers & Software Services (1982) Ltd, our parent company, and are progressing this transaction. We believe the transaction to be in the best interests of all shareholders and we are working to complete it as quickly as possible. Further announcements about the merger will be made as appropriate".
For further information please contact:
MTI Wireless Edge Ltd Dov Feiner, CEO Moni http://www.mtiwe.com/ Borovitz, Financial Director +972 3 900 8900 Nomad and Joint Broker Allenby Capital Limited Nick Naylor Alex Brearley +44 20 3328 5656 Joint Broker Peterhouse Corporate Finance Limited Lucy Williams Eran Zucker +44 20 7469 0930
About MTI Wireless Edge
MTI is engaged in the development, production and marketing of high quality, low cost, flat panel antennas for commercial and for military applications. Commercial applications include: WiMAX; wireless networking; RFID readers; and broadband wireless access. With over 40 years' experience MTI supplies 100KHz to 90GHz antennas (including directional antennas and omni directional) for outdoor and indoor deployments, including smart antennas for WiMAX, Wi-Fi, public safety, RFID and base stations and terminals for the utility market. Military applications includes a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.
Via its subsidiary, Mottech Water Solutions Ltd ("Mottech"), MTI is also a leading provider of remote control solutions for water and irrigation applications based on Motorola IRRInet state of the art control, monitoring and communication technologies. Mottech, headquartered in Israel, is the global prime distributor of Motorola for the IRRInet remote control solutions serving its customers worldwide through its subsidiaries and a global network of local distributers and representatives. It utilizes over 25 years of experience in providing its customers with remote control and management systems which ensure constant, reliable and accurate water usage, while reducing operational costs and maintenance costly expenses. Mottech activities are focused in the market segments of agriculture, water distribution, municipal and commercial landscape and wastewater and storm water reuse.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
INTERIM CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
Hot Features
Premium
Year ended
Three month period ended December
March 31, 31,
-------------------------- -------------
2018 2017 2017
------------ ------------ -------------
U.S. $ in thousands
-----------------------------------------
Unaudited
-------------------------- -------------
Revenues 6,156 6,211 26,376
Cost of sales 3,826 3,754 16,828
------------ ------------ -------------
Gross profit 2,330 2,457 9,548
Research and development expenses 294 249 927
Distribution expenses 1,018 948 3,796
General and administrative expenses 769 814 3,216
loss from sale of property, plant
and equipment - - 6
------------ ------------ -------------
Profit from operations 249 446 1,603
Finance expense 86 220 216
Finance income 3 7 242
------------ ------------ -------------
Profit before income tax 166 233 1,629
Tax (income) expense (308) 13 320
------------ ------------ -------------
Profit 474 246 1,309
------------ ------------ -------------
Other comprehensive income net of
tax:
Items that will not be reclassified
to profit or loss:
Re-measurement of defined benefit
plans - - 12
------------ ------------ -------------
- - 12
------------ ------------ -------------
Items that may be reclassified to
profit or loss:
Adjustment arising from translation
of financial statements of foreign
operations 23 242 61
------------ ------------ -------------
23 242 61
------------ ------------ -------------
Total other comprehensive income 23 242 73
------------ ------------ -------------
Total comprehensive income 497 488 1,382
============ ============ =============
Profit attributable to:
Owners of the parent 486 224 1,250
Non-controlling interest (12) 22 59
------------ ------------ -------------
474 246 1,309
============ ============ =============
Total comprehensive income attributable
to:
Owners of the parent 509 466 1,323
Non-controlling interest (12) 22 59
------------ ------------ -------------
497 488 1,382
============ ============ =============
Earnings per share (dollars)
Basic 0.0091 0.0043 0.0236
============ ============ =============
Diluted 0.0090 0.0042 0.0234
============ ============ =============
Weighted average number of shares
outstanding
Basic 53,624,318 51,837,468 52,866,352
============ ============ =============
Diluted 54,076,697 52,679,854 53,309,196
============ ============ =============
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the three month period ended March 31, 2018 (Unaudited):
Attributed to owners of the parent
-----------------------------------------------------------------------
Adjustment
arising
from
Capital translation
Reserve of Total
for financial attributable
Additional share-based statements to owners
Share paid-in payment of foreign Retained of the Non-controlling Total
capital capital transactions operations earnings parent interest equity
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
U.S. $ in thousands
Balance at
January 1, 2018 114 15,343 352 105 4,212 20,126 383 20,509
Changes during
the Three month
period
ended March 31,
2018:
Comprehensive
income
Profit for the
period - - - - 486 486 (12) 474
Other
comprehensive
income
Translation
differences - - - 23 - 23 - 23
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Total
comprehensive
income for
the
period - - - 23 486 509 (12) 497
Share based
payment - - 6 - - 6 - 6
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Balance at
March 31,
2018 114 15,343 358 128 4,698 20,641 371 21,012
======== ========== ============ =========== ======== ============ =============== =========
(*) less than one thousand dollars
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (CONT.)
For the three month period ended March 31, 2017 (Unaudited):
Attributed to owners of the parent
-----------------------------------------------------------------------
Adjustment
arising
from
Capital translation
Reserve of Total
for financial attributable
Additional share-based statements to owners
Share paid-in payment of foreign Retained of the Non-controlling Total
capital capital transactions operations earnings parent interest equity
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
U.S. $ in thousands
Balance at
January 1, 2017 109 14,964 323 44 3,468 18,908 324 19,232
Changes during
the three months
ended March 31,
2017:
Comprehensive
income
Profit for the
period - - - - 224 224 22 246
Other
comprehensive
income
Translation
differences - - - 242 - 242 - 242
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Total
comprehensive
income for
the
period - - - 242 224 466 22 488
Exercise of
options to
share capital * 7 (*) - - 7 - 7
Share based
payment - - 7 - - 7 - 7
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Balance at
March 31,
2017 109 14,971 330 286 3,692 19,388 346 19,734
======== ========== ============ =========== ======== ============ =============== =========
(*) less than one thousand dollars
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (CONT.)
For the year ended December 31, 2017 :
Attributable to owners of the parent
-----------------------------------------------------------------------
Capital
Reserve Total
from attributable
Additional share-based to owners
Share paid-in payment Translation Retained of the Non-controlling Total
capital capital transactions differences earnings parent interest equity
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
U.S. $ in thousands
---------------------------------------------------------------------------------------------------
Balance as at January
1, 2017 109 14,964 323 44 3,468 18,908 324 19,232
Changes during 2017:
Comprehensive
income
Profit for the
year - - - - 1,250 1,250 59 1,309
Other
comprehensive
income
Re measurements on
defined benefit
plans - - - - 12 12 - 12
Translation
differences - - - 61 - 61 - 61
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Total
comprehensive
income for the
year - - - 61 1,262 1,323 59 1,382
Exercise of
options to share
capital 2 99 (*) - - 101 - 101
Dividend 3 280 - - (518) (235) - (235)
Share based
payment - - 29 - - 29 - 29
-------- ---------- ------------ ----------- -------- ------------ --------------- ---------
Balance as at
December 31,
2017 114 15,343 352 105 4,212 20,126 383 20,509
======== ========== ============ =========== ======== ============ =============== =========
(*) less than one thousand dollars
The accompanying notes form an integral part of these financial statements.
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
31.03.2018 31.03.2017 31.12.2017
---------- ---------- ----------
U.S. $ in thousands
----------------------------------
Unaudited
---------------------- ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 3,963 4,926 2,642
Other current financial assets 2,021 - 2,011
Trade receivables 7,932 9,122 8,988
Other receivables 389 630 850
Current tax receivables 307 540 360
Inventories 4,963 4,151 5,281
---------- ---------- ----------
19,575 19,369 20,132
---------- ---------- ----------
NON-CURRENT ASSETS:
Long term prepaid expenses 22 39 34
Property, plant and equipment 5,288 5,340 5,302
Investment property 603 625 609
Deferred tax assets 603 597 582
Intangible assets 185 294 212
Goodwill 573 573 573
---------- ---------- ----------
7,274 7,468 7,312
---------- ---------- ----------
Total assets 26,849 26,837 27,444
========== ========== ==========
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
31.03.2018 31.03.2017 31.12.2017
---------- ---------- ----------
U.S. $ In thousands
-----------------------------------
Unaudited
---------------------- -----------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities and short term bank
credit and loans 840 994 848
Trade payables 1,832 2,036 2,239
Other accounts payables 1,936 2,071 2,322
Current tax payables 8 56 114
---------- ---------- -----------
4,616 5,157 5,523
---------- ---------- -----------
NON- CURRENT LIABILITIES:
Loans from banks, net of current maturities 737 1,505 935
Employee benefits, net 484 441 477
---------- ---------- -----------
1,221 1,946 1,412
---------- ---------- -----------
Total liabilities 5,837 7,103 6,935
---------- ---------- -----------
EQUITY
Equity attributable to owners of the parent
Share capital 114 109 114
Additional paid-in capital 15,343 14,971 15,343
Capital reserve from share-based payment
transactions 358 330 352
Translation differences 128 286 105
Retained earnings 4,698 3,692 4,212
---------- ---------- -----------
20,641 19,388 20,126
Non-controlling interest 371 346 383
---------- ---------- -----------
Total equity 21,012 19,734 20,509
---------- ---------- -----------
Total equity and liabilities 26,849 26,837 27,444
========== ========== ===========
May 13, 2018
------------------------- --------------- ----------------- ------------------------
Date of approval Moshe Borovitz Dov Feiner Zvi Borovitz
of financial statements Chief Finance Chief Executive Non-executive Chairman
Director Officer
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year ended
Three months period ended December
March 31, 31,
--------------------------- ----------
2018 2017 2017
------------- ------------ -------------
U.S. $ in thousands
----------------------------------------
Unaudited
--------------------------- -------------
Cash Flows from Operating Activities:
Profit for the period 474 246 1,309
Adjustments for:
Depreciation and amortization 145 164 637
Loss (gain) from investments in financial
assets (16) 77 -
Loss from sale of property, plant and equipment - - 6
Equity settled share-based payment expense 6 7 29
Finance expenses, net 17 28 162
Income tax expense (benefit) (308) (13) 320
Changes in operating assets and liabilities:
Decrease (increase) in inventories 330 870 (269)
Decrease (increase) in trade receivables 1,062 (839) (879)
Decrease (increase) in other accounts receivables
and prepaid expenses 472 121 (88)
Increase (decrease) in trade and other
accounts payables 4 (782) (51) 396
Increase in employee benefits, net 7 35 84
Interest received - - 22
Interest paid (17) (28) (109)
Income tax received (paid) 233 (114) (190)
------------- ------------ -----------
Net cash provided by operating activities 1,623 503 1,430
------------- ------------ -----------
The accompanying notes form an integral part of the financial statements.
INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS (cont.)
Year ended
Three months period December
ended March 31, 31,
------------------------------ -----------
2018 2017 2017
------------------- --------- -----------
U.S. $ in thousands
--------------------------------------------------
Unaudited
------------------- -----
Cash Flows From Investing Activities:
Purchase of investments in financial
assets, net - - (2,000)
Proceeds from sale of property, plant
and equipment - - 100
Purchase of property, plant and equipment (100) (8) (447)
------------------- --------- -----------
Net cash used in investing activities (100) (8) (2,347)
------------------- --------- -----------
Cash Flows From Financing Activities:
Proceeds from exercise of share options - 7 101
Dividend paid to the owners of the
parent - - (235)
Short term loan received from banks - 166 -
Long term loan received from banks 10 - 60
Repayment of long-term loan from banks (210) (210) (829)
------------------- --------- -----------
Net cash used in financing activities (200) (37) (903)
------------------- --------- -----------
Increase (decrease) in cash and cash
equivalents during the period 1,323 458 (1,820)
Cash and cash equivalents at the beginning
of the period 2,642 4,428 4,428
Exchange differences on balances of
cash and cash equivalents (2) 40 34
------------------- --------- -----------
Cash and cash equivalents
at the end of the period 3,963 4,926 2,642
=================== ========= ===========
Appendix A - Non-cash transactions:
Year ended
Three months period December
ended March 31, 31,
--------------------- ----------
2018 2017 2017
---------- --------- ----------
U.S. $ in thousands
---------------------------------
Unaudited
---------------------- -------------
Purchase of property, plant and equipment
against trade payables 3 6 3
=========== ========= ==========
Scrip dividend - - 283
=========== ========= ==========
The accompanying notes form an integral part of the financial statements.
MTI WIRELESS EDGE LTD.
(An Israeli Corporation)
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General:
Corporate information:
M.T.I Wireless Edge Ltd. (hereafter - the "Company") is an Israeli corporation. The Company was incorporated under the Companies Act in Israel on December 30, 1998 as a wholly- owned subsidiary of M.T.I Computers and Software Services (1982) Ltd. (hereafter - the Parent Company), commenced operations on July 1, 2000 and since March 2006 the Company's shares have been traded on the AIM market of the London Stock Exchange.
The formal address of the company is 11 Hamelacha Street, Afek industrial Park, Rosh-Ha'Ayin, Israel.
The Company is engaged in the development, design, manufacture and marketing of antennas and accessories.
Via its subsidiary, Mottech Water solutions Ltd., MTI is also a leading provider of remote control solutions for water and irrigation applications based on Motorola IRRInet state of the art control, monitoring and communication technologies.
Certain operational and administrative services are provided by the Parent Company.
Note 2 - Significant Accounting Policies:
The interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in International Accounting Standard No. 34 ("Interim Financial Reporting").
The interim consolidated financial information set out above does not constitute full year-end accounts within the meaning of Israeli Companies Law. It has been prepared on the going concern basis in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS). Statutory financial information for the financial year ended December 31, 2017 was approved by the board on February 15, 2018. The report of the auditors on those financial statements was unqualified.
The interim consolidated financial statements as of March 31, 2018 have not been audited.
The interim consolidated financial information should be read in conjunction with the annual financial statements as of December 31, 2017 and for the year then ended and with the notes thereto. The significant accounting policies applied in the annual financial statements of the Company as of December 31, 2017 are applied consistently in these interim consolidated financial statements, except for the adoption of new standards effective as of 1 January 2018.
New IFRSs adopted in the period
1. IFRS 9 Financial Instruments
IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.
The details of new significant accounting policies and the nature and effect of the changes to previous accounting policies are set out below:
(a) Classification and measurement
The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through profit or loss ("FVTPL"):
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
-
A debt investment is measured at fair value through other comprehensive income ("FVOCI") if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition.
The following accounting policies apply to the subsequent measurement of financial assets.
Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost: These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses (see b below). Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Debt investments at FVOCI: These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
Equity investments at FVOCI: These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
The Company has implemented the classification and measurement requirements of IFRS 9 retrospectively on the basis of the facts and circumstances that existed as of January 1, 2018 by recognizing the cumulative effect of the retrospective application as an adjustment to the opening balance of retained earnings and other components of equity as of January 1, 2018.
(b) Impairment
IFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected credit loss' (ECL) model. The new impairment model applies to financial assets measured at amortized cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses are recognized earlier than under IAS 39.
Under IFRS 9, loss allowances are measured on either of the following bases:
- 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and
- lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.
The Company has elected to measure loss allowances for trade receivables at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward-looking information.
The Company considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade'.
The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
Trade receivables
Exposures within each Company were segmented based on common credit risk characteristics such as credit risk grade, geographic region and industry - for wholesale customers; and delinquency status, geographic region, age of relationship and type of product purchased - for other customers.
Actual credit loss experience was adjusted by scalar factors to reflect differences between economic conditions during the period over which the historical data was collected, current conditions and the Company's view of economic conditions over the expected lives of the receivables.
Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, on the basis of the facts and circumstances that existed as of January 1, 2018 by recognizing the cumulative effect of the retrospective application as an adjustment to the opening balance of retained earnings and other components of equity as of January 1, 2018.
The adoption of IFRS 9 did not have an impact on the financial statements.
2. IFRS 15 Revenue from Contracts with Customers
IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework:
1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when the entity satisfies a performance obligation.
Below are the significant accounting policies and judgments applied by the Company in recognizing revenue from customer contracts in detail according to the Company's main activities:
(a) Sale of goods
The Company's contracts with customers for the sale of goods generally include one performance obligation. The Company has concluded that revenue from sale of goods should be recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment.
Variable consideration
Under IFRS 15, volume rebates give rise to variable consideration. The variable consideration is estimated at contract inception and constrained until the associated uncertainty is subsequently resolved. The application of the constraint on variable consideration increases the amount of revenue that will be deferred.
Under IFRS 15, retrospective volume rebates give rise to variable consideration. To estimate the variable consideration to which it will be entitled, the Company applied the 'most likely amount method' for contracts with a single volume threshold and the 'expected value method' for contracts with more than one volume threshold. The selected method that best predicts the amount of variable consideration was primarily driven by the number of volume thresholds contained in the contract. The Company then applies the requirements on constraining estimates of variable consideration.
Warranty obligations
The Company generally provides warranties for general repairs of defects that existed at the time of sale, as required by law. As such, most warranties are assurance-type warranties under IFRS 15, which the Company accounts for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets, consistent with its practice prior to the adoption of IFRS 15.
Financing components
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
(b) Rendering of services
Provided the amount of revenue can be measured reliably and it is probable that the Company will receive any consideration, revenue from services is recognized in the period in which they are rendered.
(c) Revenues from Construction Contracts
Revenues are reported by the "percentage of completion" method. The percentage of completion is determined by dividing actual completion costs incurred to date by the total completion costs anticipated.
When a loss from a contract is anticipated, a provision is made in the period in which it first becomes evident, for the entire loss anticipated, as assessed by the company's management.
The Company recognizes income from construction contracts over time, since the Company's performance does not create an asset with alternative use to the Company and the Company has the right to enforce payment for performance completed up to that date.
The payment terms in the projects are based on milestones set at the date of signing the contract and are based mainly on the rate of progress. For this reason, the Company is not expected to recognize assets in respect of contracts and liabilities in respect of contracts in significant amounts in relation to these contracts.
Causes of uncertainty in material estimates
Measuring the progress of long-term performance commitments - the Company is required to estimate the total cost of completing each project based on estimates of material costs, labor costs, subcontractor performance, and more.
First time application
The Company elected to apply IFRS 15 retrospectively for the first time by recognizing the cumulative effect of the retroactive application as an adjustment to the opening balance of retained earnings as at January 1, 2018.
The adoption of IFRS 15 did not have an impact on the financial statements.
Note 3 - REVENUES:
Three months period Year ended
ended December
March 31, 31,
--------------------- ------------------
2018 2017 2017
---------- --------- ------------
U.S. $ in thousands
-------------------------------------------
Unaudited
--------------------- ------------
Revenues arises from:
Sale of goods 4,603 4,957 21,271
Rendering of services 725 546 2,492
Projects 828 708 2,613
---------- --------- ------------
6,156 6,211 26,376
========== ========= ============
Note 4 - operating SEGMENTS:
The following table's present revenue and profit information regarding the Group's operating segments for the Three months period ended March 31, 2018 and 2017 respectively and for the year ended December 31, 2017.
Three months period ended
March 31, 2018 (Unaudited)
Antennas Water Solutions Total
-------- --------------- --------
U.S. $ in thousands
-----------------------------------
Revenue
External 3,054 3,102 6,156
-------- --------------- --------
Total 3,054 3,102 6,156
======== =============== ========
Segment profit 102 147 249
======== ===============
Finance expense, net (83)
--------
Profit before income
tax 166
========
Other
Depreciation and amortization 135 10 145
======== =============== ========
Three months period ended March 31, 2017
(Unaudited)
Antennas Water Solutions Total
-------- --------------- --------
U.S. $ in thousands
-----------------------------------
Revenue
External 3,129 3,082 6,211
-------- --------------- --------
Total 3,129 3,082 6,211
======== =============== ========
Segment profit 166 280 446
======== ===============
Finance expense, net (213)
--------
Profit before income tax 233
========
Other
Depreciation and amortization 147 17 164
======== =============== ========
Year ended December 31, 2017
Antennas Water Solutions Total
--------- --------------- ---------
U.S. $ in thousands
-------------------------------------
Revenue
External 13,267 13,109 26,376
--------- --------------- ---------
Total 13,267 13,109 26,376
========= =============== =========
Segment profit 67 1,536 1,603
========= =============== =========
Unallocated corporate expenses
Finance income, net 26
---------
Profit before income tax 1,629
=========
Other
Depreciation and amortization 586 51 637
========= =============== =========
Note 5 -TRANSACTIONS AND BALANCES WITH RELATED PARTIES:
The following transactions occurred with the Parent Company and other related parties:
Three months period Year ended
ended December
March 31, 31,
--------------------- ------------------
2018 2017 2017
---------- --------- ------------
U.S. $ in thousands
-------------------------------------------
Unaudited
--------------------- ------------
Purchased Goods 57 60 252
Management Fee 117 116 498
Services Fee 72 65 259
Lease income (18) (18) (72)
Compensation of key management personnel of the Group:
Three months period Year ended
ended December
March 31, 31,
--------------------- ------------------
2018 2017 2017
---------- --------- ------------
U.S. $ in thousands
-------------------------------------------
Unaudited
--------------------- ------------
Short-term employee benefits *) 203 201 920
========== ========= ============
*) Including Management fees for the CEO, Directors, Executive Management and other related parties.
All Transactions were made at market value.
Balances with related parties:
As at
----------------------------------
31.03.2018 31.03.2017 31.12.2017
---------- ---------- ----------
U.S. $ in thousands
----------------------------------
Unaudited
---------------------- ----------
Other accounts payables 105 243 467
========== ========== ==========
Note 6 - SIGNIFICANT AND SUBSEQUENT EVENTS:
1. During March 2018 the Company announced that it is in preliminary discussions with its majority shareholder, MTI Computers & Software Services (1982) Ltd ("MTIC"), regarding a potential merger between the two companies (the "Proposed Transaction"). MTIC, whose shares are listed on the Tel Aviv Stock Exchange, currently holds 53.2% of the Company's issued ordinary shares. Following the announcement on March 2018, on May 1, 2018 the Company announced that it had entered into a merger agreement (the "Merger Agreement") with its majority shareholder, MTIC and the Company together being the "Merging Companies", according to which, and in accordance with the provisions of Sections 350-351 of the Israeli Companies Law, 5759-1999 (the "Companies Law"), as a court approved scheme of arrangement between the Company, MTIC and their shareholders (the "Scheme of Arrangement"), MTIC will be merged into the Company in a statutory merger, so that MTIC will be dissolved and all of its activities, assets and liabilities, subject to certain qualifications, will be transferred to the Company in consideration for the allotment of new ordinary shares of the Company and the transfer of MTIC's existing holdings in the Company, to all of MTIC's shareholders (the "Merger").
As consideration for the Merger, the Company will allocate to the shareholders of MTIC 31,600,436 new ordinary shares in the Company, subject to a Conversion Ratio Mechanism (as defined below). In addition, MTIC's existing holdings in the Company will also be transferred to all of the shareholders in MTIC, pro rata to their holdings of shares in MTIC.
On the date of record for the Merger the Company will allocate to the shareholders of MTIC (the "Date of Record for the Merger" and the "Shareholders of MTIC" respectively) 31,600,436 new ordinary shares in the Company, according to the Conversion Ratio (as defined below) as of the date of the Merger Agreement, subject to the Conversion Ratio Mechanism (as defined below) (the "Allotted Shares") and will transfer them, together with MTIC's Holdings in the Company (the "Sold Shares"), to all of the shareholders in MTIC, pro rata to their holdings of shares in MTIC on the Date of Record for the Merger, according to the Conversion Ratio. With respect to the Merger Agreement, the "Conversion Ratio" - a ratio of 5.2689055 Sold Shares for each share in MTIC as of the date of entry into the Merger Agreement, which has been determined according to a valuation of the business activities of MTIC and the Company, on the basis of the consolidated and audited financial statements for the year ended 31 December 2017 of each company as valued by an independent appraiser (the "Appraiser"), which is subject to updates, as necessary, according to the Conversion Ratio Mechanism (as defined below). According to the aforesaid valuation, which constitutes part of the Merger Agreement (the "Valuation"), the equity ratio as of 31 December 2017, between the value of MTIC excluding MTIC's holdings in the Company (approximately US$10.7 million as of 31 December 2017) when compared with the value of the Company (approximately US $18.8 million as at 31 December 2017) is approximately 1.75: in favor of the Company. Following completion of the Merger, assuming the Conversion Ratio is not adjusted in accordance with the Conversion Ratio Mechanism (as defined below) and provided none of the options granted by the Company are exercised, the issued share capital of the Company will be 87,038,724 ordinary shares.
The completion of the Merger pursuant to the terms of the Merger Agreement is contingent upon the fulfillment of the conditions precedent (the "Conditions Precedent") by 30 August 2018, unless such date is extended by the Merging Companies, explicitly and in writing.
2. On April 5, 2018 the company paid a dividend of US 2 cents per share totaling approximately US$396,000 and in addition 1,813,970 new ordinary shares were issued to qualifying shareholders that chose the scrip dividend alternative.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRFBCGDUBUBBGIX
(END) Dow Jones Newswires
May 14, 2018 02:00 ET (06:00 GMT)
1 Year Mti Wireless Edge Chart |
1 Month Mti Wireless Edge Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
