* To wind down legacy products business in US in 2012
* Takes related charge of $5.3 million
* FY pretax loss $4.1 mln vs pretax profit $1 million last
* 2012 rev and profit to be better than 2011 - CFO
By Brenton Cordeiro
Feb 27 Israel's BATM Advanced
Communications scrapped its dividend payout for 2011 as
it swung to a loss, hurt by a one-time charge related to
curtailing a part of its telecoms business.
BATM, a designer and producer of broadband data and telecoms
systems, said it would wind down its legacy telecoms business in
the United States in 2012 to focus on Internet protocol, and had
absorbed related costs of $5.3 million in 2011.
However, excluding the legacy telecoms business, BATM said
it expected 2012's performance to be an improvement over 2011.
"If you take 2011, and strip off the legacy business you
will see that 2012 will be better both in revenue and
profitability," Chief Financial Officer Ofer Bar-Ner told
In early December, the company had said it was undertaking a
strategic review of the legacy business and would consider
withdrawing from it in 2012.
"The focus on telecom IP will show growth in revenue, and
will show slightly better margins," the CFO said. "On the
medical side, we will continue to lose money on diagnostics but
less than we what we have invested this year."
The company said its diagnostics business took up the vast
majority of its investment in the medical division in 2011, and
continued to incur losses.
BATM, which also makes medical products like laboratory
diagnostic equipment, said it expected results from these
investments only by 2013.
"In 2012, we should begin to see the launch of the
diagnostics product range," Shore Capital's Robin Speakman said.
The firm posted a pretax loss of $4.1 million in 2011,
compared with a profit before tax of $1 million a year ago.
BATM, which had also scrapped its interim dividend for 2011
last March, said revenue for the year rose 6 percent to $127.6
The company, which has applied to list its shares on the
Tel-Aviv Stock Exchange, now expects to have a dual listing
before the end of the first-half of 2012.
Shares of the company were trading down 1.4 percent at 17.5
pence at 1054 on Monday on the London Stock Exchange.