BATM Advanced Communications Ltd on Monday said it is on track for full-year growth after successfully improving profit and cutting expenses in the first half.
The Hod Hasharon, Israel-based provider of real-time technologies for networking solutions and medical laboratory systems said pretax profit rose 8.5% to $788,000 in the first half that ended June 30 from $726,000 the previous year.
Revenue declined 0.2% to $60.0 million from $60.2 million, as cost of revenue increased 5.7% to $41.4 million from $39.2 million.
Total operating expenses reduced by 16% to $17.1 million from $20.4 million.
Cyber division revenue multiplied to $8.3 million from $1.7 million and Diagnostic revenue increased 7.6% to $17.0 million from $15.8 million
Networking revenue however fell 48% to $6.0 million from $11.6 million while Secondary Activities revenue decreased 7.1% to $28.8 million from $31.0 million.
Weaker performance from Networking was attributed to a global slowdown in the telecommunications industry, with economic uncertainty pushing organisations into pausing or delaying purchasing decisions.
‘BATM remains on track to deliver strong growth for FY 2024...In the Networking division, the group expects performance in the second half to be much stronger than the first, with new orders expected for its carrier ethernet and Edgility solutions. The Cyber division continues to perform well as it delivers its large backlog as well as new orders. In the Diagnostics division, further growth is being driven by the continued expansion of the customer base,’ BATM said.
Additionally, the company is ‘eagerly anticipating the launch of its cyber solution’ into commercial markets, which it says will result in a substantial increase in the total addressable market.
The board will also look to pursue mergers and acquisitions or disposal opportunities to accelerate the execution of its growth strategy across the core divisions.
BATM shares were up 1.0% at 20.80 pence each in London on Monday morning.
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