MTI Wireless Edge trades strongly through third quarter

Communication and radiofrequency technology company MTI Wireless Edge reported a “strong” third quarter on Monday, with revenue growth of 8% year-on-year to $34.8m.

The AIM-traded firm said EBITDA for the nine months ended 30 September was ahead 14% to $4.58m, while one-off acquisition and depreciation costs led to a net profit of $2.74m, up from $2.7m.

Earnings per share increased to 2.99 cents from 2.95 cents, as the company remained ungeared, with net cash of $5.2m as at 30 September.

The board said it expected to declare a final dividend in its full-year results.

“The third quarter of 2022 represented an excellent performance compared to the third quarter of 2021, showing double-digit growth in revenue and profits all the way to earnings per share,” said chief executive officer Moni Borovitz.

“We remain very focused on providing radio frequency solutions across our three divisions, each targeting specific markets where there is significant need for our services.

“Demand, as shown by the increase in sales, remains strong and our markets are nearly back to normal with shipment costs reduced relatively to the high cost during Covid-19, and microchip shortages also reducing.”

Overall, Borovitz said the firm was in a “strong position”, with net cash of $5.2m and no borrowings, to continue to grow both organically and by acquisition.

“Our antenna division is well positioned within the evolving 5G market - the main growth from 5G is still yet to come so we are positioning ourselves with most of the major players and demonstrating the strength of our solutions.

“India, a key market, where we have a physical presence, recently completed a 5G auction.

“This is leading to rapidly increasing demand and the forecast for the number of new Eband towers is substantial.”

Moni Borovitz said PSK had proven to be a “strong addition” to the group, adding that since MTI acquired 51% of PSK in January, it had won “significant orders” primarily from within the defence sector.

“The summer just ended was one of the driest on record, accentuating the need to address the growing problem of water scarcity.

“There remains substantial unnecessary wastage of water, however, there is increasing awareness of solutions like Mottech's, where around 35% of the volume of water previously used can now be saved.

“Going into the final quarter of this year, the company is well-placed to deliver a good result for the year.”

At 1219 GMT, shares in MTI Wireless Edge were up 3.68% at 52.88p.

Reporting by Josh White for Sharecast.com.