2016 was an important year for BATM as we made significant achievements in developing new lines of products and accessing new markets.
More importantly, we believe that 2016 will be recognized as the year in which we started unlocking the value inherent in BATM.
During the year, our businesses won new customers laying the foundations for growth in the coming years.
I am particularly pleased with the achievements of the Diagnostics unit. We succeeded in increasing the volume of the machines sold to over 500 units, which enabled a growth in the unit’s revenues compared to last year.
2016 was a transitional year for Telco Systems as shifted our focus to software-based Network Function Virtualization (NFV) solutions. Telco Systems launched the first NFVTime software-based solution, which we believe will become the de facto standard operating system for the NFV domain. While the financial performance of our Telco business was less than we planned, we succeeded in approaching several Tier 1 Communication Service Providers who are adopting NFV solutions and are conducting proof-of-concept trials with our products. Our Cyber unit also succeeded in winning new contracts.
At the beginning of the year we acquired Green Lab, a Hungary based developer and distributor of environmental-measuring analytical instruments. The Green Lab team has developed a wealth of expertise and enjoys an excellent reputation. In 2016, Green Lab contributed both to the Distribution business of BATM group in the CIS countries and to our growing business in the ECO environment. In 2016 and early 2017, the Bio-Medical Division took several steps to broaden our laboratory services, geographic reach and analytics offerings. We have completed our first analytic laboratory in Romania. In particular, we extended our reach by acquiring Zer Laboratories, our latest acquisition in Israel.
The Pathogenic Waste Treatment and Sterilization unit is shifting its focus away from control systems and medical sterilizers to our ISS (Integrated Sterilizer and Shredder) technology. Our ISS technology is now deployed in three important market segments: medical, pharmaceutical and agricultural. We expect to win more lucrative projects in these segments in 2017.
In June 2016, our then fully-owned subsidiary, Adaltis, signed an investment agreement with its Chinese partner, Egens Biotechnology Company Ltd. Adaltis was valued at the time of the transaction at more than $58m, clearly demonstrating the value BATM has within the group.
We also realized value during the year from the sale of one our properties.
In 2017, we fully expect our Bio-Medical Division to be the growth engine for BATM. The Board of Directors is encouraging our senior executives to utilize our strong IP portfolio (boasting over 40 patents in the Bio-Medical Division) to create value for our shareholders. I also believe that in 2017 the Cyber unit will achieve new contracts, and both the bio-pharma and agri-waste solutions will develop new markets globally.
I would like to thank Dr. Zvi Marom, our CEO, for his efforts and my Board colleagues for their considerable contribution. Mostly I would to thank our shareholders for their continued support and our employees all over the globe for their dedication, skills and professionalism that has brought BATM to this exciting position and will continue to move us toward growth and profitability.
As always, we are committed to creating value for our shareholders in the years to come and look forward to continuing to report our progress.
Dr. Gideon Chitayat
27 April 2017
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