MTI Wireless Edge reported lower first half revenues despite a stronger second quarter.
Israel-based MTI manufactures flat panel antennas for fixed wireless broadband. It has been hit by adverse movements in the exchange rate between the Israeli Shekel and the US dollar. The Shekel appreciated by 22% against the dollar over the 12 months to June 2008.
Revenues fell 8% to $8.9m in the six months to June 2008, while pre-tax profit declined from $2.47m to $893,000. The rising oil price increased costs.
A new factory in India will open in the third quarter. This will help MTI to be more cost competitive and improve margins. It will also help it to increase sales in the region. The investment will be around $500,000.
Noble took over from Blue Oar as nominated adviser and broker in June.
The shares dipped 0.75p to 17p, valuing MTI at £8.88m. Net cash in the balance sheet of $13.6m is equivalent to 13p a share. MTI joined Aim on 16 March 2006, when it raised £6m (£5.05m net) at 39p a share.
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