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MTI Wireless profits tumble after 'calculated' investments
Antennas manufacturer MTI Wireless Edge saw revenues dip just 1% in its past trading quarter, but profits decreased considerably as management took the "calculated long-term view" of increasing the level of investments in development and sales.
MTI's pre-tax profits tumbled 28% to $166,000, despite revenues pretty much flat at $6.16m, but the AIM-quoted firm still believes the remainder of the year will allow the group to achieve its goal of increasing both revenue and profits.
Earnings per share more-than-doubled year-on-year to $0.91, mostly due to a large tax income credit. Cash flow from operations tripled to $1.6m.
Chief executive Dov Feiner said, "During the first quarter of 2018 we continued to see good progress in meeting our internal goals in both segments of our business. In our wireless controller segment, via Mottech, we see opportunities to grow the business in the various geographical areas we are now focusing on, including North America and China. In the antenna segment, we continue to see good demand in our military, RFID and Millimetre Wave solutions."
"Given the current order book and pipeline of opportunities in both segments, we have a strong belief that our growth will continue in 2018 and beyond," Feiner added.
As of 1140 BST, MTI shares had dropped 11.57% to 26.44p.