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Software Radio Technology (LON:SRT) report: Interim PAT recovers to ?1.3m profit

Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Software Radio Technology [NR] develops maritime VHF and AIS equipment for identification and tracking in navigation and homeland security applications. It reports 1H’10/11 (Sep) revenue +94%YoY to ?4.42m (1H’09 ?2.28m); operating profit of ?1.099m (versus a 1H’09 (?197k) loss); PAT ?1.33m (1H’09 loss was ?31k). Gross margin improved to 48% (1H’09 was 36%).

- SRT’s cash position increased from year end by 46% to ?1.386m on a ?0.88m cashflow contribution; the company has no debt.

- Order book stood at US$6.6m as of 1 November.

- Chairman Simon Rogers commented: “demand in the AIS [marine identification and tracking] market continues to grow as existing mandates start to take effect and we are now seeing the start of this reflected in the figures we are reporting today. We expect the market to continue to grow and see many opportunities arising for our technologies and new products in the future.”

- SRT noted “revenues have been driven by demand from customers around the world as a result of mandates taking effect and the continuing general increased awareness of AIS.” … “Today there are mandates in effect which require approximately one million vessels to be fitted with an AIS device within the next four years, of which we estimate that 80,000 have now been fitted, with more mandates expected in the future.”