Investors have failed to grasp the significance of the latest contract wins from BATM Advanced Communications (BVC:115.5p), a provider of medical laboratory systems, diagnostic kits, cyber security and network solutions.
The Israel-based technology group is now gaining significant traction in commercialising its valuable intellectual property, as I noted after BATM signed up its first tier 1 telecoms customer for its NFVTime virtual networking solution (‘Bull market pointers’, 1 September 2020). Operating on both Arm-based and Intel-based architectures, the cutting-edge technology enables network carriers to remotely deploy their own virtualised software-based networks. Analysts at house broker Shore Capital believe that revenue from this one customer alone could scale into a multi-million dollar recurring base over the next five years. NFV is critical in leveraging the benefits offered by 5G and the Internet of Things, so expect many more tier one customers to adopt the technology in due course.
BATM’s medical laboratory systems business is firing on all cylinders, too, having just received an initial €4.3m (£3.9m) order for its Covid-19 Real-Time PCR diagnostic antigen test kits and instruments from a major global private laboratory group. BATM expects to receive “further significant orders from this customer during the current quarter and over the next 12 months”. In addition, the directors have updated investors on the progress being made on a raft of new diagnostic kits.