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AIM Antenna manufacturer MTI Wireless Edge (LON:MWE) said that revenues for the first half rose 3% to $17.1 million. However, operating profits for the period fell by 15.87% to $1.06 million, largely due to merger costs and with signs of recovery during the second quarter.
Chairman Zvi Borovitz commented that: “We are very pleased to have completed the merger and are excited with the opportunities in each of our business segments. During the first six months of 2018 and especially in the second quarter we continued to see good progress. The general and administration costs in the six months include a one-time Merger cost of approximately $160,000. Going forward we will not only save these costs but expect to save an additional $100,000 annually due to the Merger.
“During the first half of 2018, we continued to see good progress in meeting our internal goals in all areas of our business. In our wireless controller segment, via Mottech, we grew by 15% year-on-year and we continue to see opportunities to grow the business. In the antenna segment, we continue to see good demand in our military and Millimetre Wave solutions. While H1 revenue in this segment was 7% below last year, we believe that by the end of the year, we will also see growth in this segment. Our representation division had a small growth in revenue in the first half of the year, and given the design win achieved and the pipeline of opportunities, we expect to end this year with higher revenue growth. Our system engineering division continues to progress focusing on securing its growth for 2019 and beyond. Overall, in all segments, we have a strong belief that our growth will continue into 2019 and beyond.”
Shares in MTI Wireless Edge dropped by 2.81% to 22.84p (as of 13:45 BST).