MTI Wireless Edge's revenues climb due to summer merger

MTI Wireless Edge’s shares enjoyed a boost on Monday after the Israeli outfit said revenues for the first three quarters had jumped after its recent merger.

For the nine-month period ended 30 September, revenues increased by 32% year-on-year to $25.9m, though disregarding the impact of the merger of MTI Computers and Software Services revenue climbed by a more modest 2%, while net profit rose 7%.

Net profit increased by 67% to $1.6m with the communication and radio frequency specialist’s 20 August merger taken into account.

Zvi Borovitz, chairman of MTI Wireless, said: "We are very pleased to have completed the merger, which we feel has immediately demonstrated a benefit to the company, by increasing its range of solution offerings, revenue and profits - in the third quarter of this year we had a 100% increase in EPS over the third quarter of 2017, while operating profit increased by 58%."

Cash and cash equivalents stood at $5.3m at 30 September, down from $6m at the same point last year.

"We believed that the merger would lead to costs savings and efficiencies and we are happy to have achieved enhanced profits from the merger, including at the earning per share level. We remain excited about the opportunities for the enlarged group, as we continue to see good progress in meeting our internal goals in all areas of the business," said Borovitz

MTI’s shares were up 5.88% at 18.00p at 1128 GMT.