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BATM - Nokia-Siemens merger could

March 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • BVC
  • Price:
  • 30p
BATM has reported 2006 results which included a six month contribution from its Metrobility acquisition. Overall sales grew by 30% to US$73.5m with an operating profit of US$7.7m. That compares to a loss of US$4.5m on sales of US$56.5m in 2005. Part of the improvement was due to a reduction in the R&D team in the US but gross margins have also continued to improve at 42.3% up from 41% at H1 06 as old legacy products have phased out leaving higher margin IP products which include a greater element of software to represent most of the sales. Net cash at the year end was US$50.4m. Eps was 2.62 cents on a 7% tax rate. The segment to which BATM is mainly exposed is the migration of telcos to Ethernet switch routers to support voice ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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