BATM is braced for slowdown

ISRAEL-BASED and London-listed telecoms equipment provider BATM Advanced Communications is preparing for recession-hit markets ahead but is comfortable with forecasts predicting sales growth of between 30% and 40% this year, writes James Maclean.

"There is clearly a slowdown. We have prepared the company for a recession, and one which is not only American but global, and not just for two quarters. I don't believe economies can turn on a dime," said chief executive Zvi Marom.

Marom says major telecoms clients are spending more selectively on broadband, but that BATM is benefitting from drives to wring extra efficiency from networks. The group has overcome supply problems with Infineon. Marom is promising big deals with Nokia and "another similar Scandinavian company".

Full-year results exceeded downgraded expectations delivered in a December profit warning. Pre-tax losses in the year to 31 December tripled to $26.1 million (17.9 million) on sales up 350% to $92 million. Pre-tax profit before goodwill rose 160% to $22.2 million. Losses per share were 6.85 cents against earnings of 25.58 cents.

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