MTI Wireless Edge Ltd reported sharply lower 2008 profits and a cut in the dividend.
The results announcement came just before the close so there was little time for the market to react. The Israel-based broadband antennas manufacturer’s revenues fell 6% to $17.9m in 2008. Military sales fell by one-fifth. WiMAX antenna demand has increased.
Pre-tax profit slumped from $5m to $1.25m. Research & development costs fell slightly but distribution and admin costs increased. Costs have subsequently been reduced.
The dividend has been cut from 1.85c to 1.16c a share. There are also plans to buy back more shares - $917,000 was spent in 2008.
MTI has cash of $3.81m and marketable securities worth $9.53m. Net asset value is $20.1m. At 13.25p a share, MTI is valued at £6.83m. That is barely half the NAV of the company.
The Indian factory commenced production in the fourth quarter of 2008.
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