BATM Full Year 2023 Results

LEI: 213800FLQUB9J289RU66
12 March 2024

 BATM Advanced Communications Limited
(“BATM” or “the Group”)

Full Year Results

BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces its preliminary results for the year ended 31 December 2023.

Financial Highlights

*Adjusted to exclude amortisation of intangible assets and non-cash share-based payments. For further detail, see the Financial Review

Strategic & Operational Highlights

• Completion of in-depth internal review of all business operations to focus the Group on its core business lines within networking, cyber and diagnostics, whilst introducing organisational improvements
• Sales increased by 11.7% year-on-year when excluding contribution from COVID-19 products
• Revenue and adjusted EBITDA growth driven by excellent performance of the Cyber division

Networking

• Edgility edge computing platform:
  • Two five-year orders won from NGA 911 LLC (“NGA”), a leading provider of emergency connectivity services in North America
  • Rollout continued to progress with CEMEX and CityFibre
  • Proof-of-concepts conducted with a number of potential customers worldwide, including Tier 1 operators
  • Established new partnership to increase sales and marketing reach in EMEA
  • Launched new release of Edgility, with significantly upgraded features
• Carrier ethernet solutions:
  • Launched new 10GE platform, which is undergoing proof-of-concepts that are expected to translate to orders in the current year
  • Promoting 100G solutions with TM-8104 and TM-8106 network edge platforms to address demand for high-performance rapidly deployable service demarcation devices with advanced features and low cost per port 

Cyber

• Won multi-year orders totalling $32.4m from government defence department customer
• Development continued of advanced encryption solutions, including quantum key distribution integration and to expand the Group’s offering into further markets

Diagnostics

• In line with the new strategy, the Diagnostics division now comprises all of the Group’s diagnostics instrument and reagent activities
• Sales of diagnostic products increased by 20.8% year-on-year when excluding COVID-19 contribution, driven by expanded customer base and product portfolio for distributed diagnostic products
• Initiated sales of MDXlab, a new molecular diagnostics instrument, towards the end of the year, which is receiving strong interest
• Introduced a next-generation sequencing (“NGS”) preparation device with advanced capabilities for DNA and RNA sequencing
• ADOR Diagnostics progressed development of disruptive NATlab molecular diagnostics platform, with in-hospital pre-clinical trials commencing during the year, and secured $7.5m investment

 Commenting on the results, Moti Nagar, Chief Executive Officer of BATM, said:

“I am proud of what we achieved in 2023. Against a challenging macroeconomic backdrop, we delivered growth in sales and adjusted EBITDA – including an outstanding performance in our Cyber business. We launched several innovative new products in Diagnostics and Networking that have been well-received, whilst progressing development of potentially game-changing solutions. Significantly, we undertook an in-depth strategic review that resulted in the establishment of a new strategy, which we began to implement in the second half of the year. Our new strategy is focused on accelerating our activities that build on our established areas of core expertise and which are in scalable and growing markets. This involves enhancing how we operate as a business, prioritising resource allocation and potential M&A activity. We have already taken important steps forward in this process and I am excited about the progress we will make in 2024. Accordingly, and supported by our strong balance sheet, we look to the future with confidence and look forward to reporting on our progress.”

Enquiries:

BATM Advanced Communications
Moti Nagar, Chief Executive Officer
Ran Noy, Chief Financial Officer
+972 9866 2525

Shore Capital
Mark Percy, Anita Ghanekar, James Thomas (Corporate Advisory)
+44 20 7408 4050

Gracechurch Group
Harry Chathli, Claire Norbury
+44 20 582 3500

Forward-looking statements  

This document contains forward-looking statements. Those statements reflect the current opinions, evaluations and estimations of the Group's management, and are based on the current data regarding the Group's business as is detailed in this document and in the Group's periodical, interim and immediate reports. The Group does not undertake any obligation or make any representation that actual results and events will be in line with those statements, and stresses that they may differ materially from those statements, due to changes in the Group's business, market, competition, demand for the Group's products or services, general economic factors or other factors that can influence the Group's business and results, due to the risk factors that are detailed in the Group's Annual Report, and due to information and factors that are currently unknown to the Group's management and that, if known, would affect the management's opinions, evaluations or estimations. The Group will report the actual results and events according to its legal, accounting and regulatory obligations, and does not undertake any other obligation to report them or their deviations from the forward-looking statements, or to update any of the forward-looking statements in this document or to report that it is not valid anymore.