BATM Advanced Communications Limited (LON:BVC) is planning the next decade after reaping the benefits of its previous strategic plan.

The firm operates through two segments: the bio-medical division and the networking & cyber division, both built on the creation of intellectual property backed by patents.

The former provides diagnostic laboratory equipment as well as products to treat biological pathogenic waste in the medical, agricultural and pharmaceutical industries.

The latter services mobile and cloud markets as well as for the wire-line infrastructure, alongside network monitoring solutions and services to large area networks in the cyber unit.

The company has grown rapidly in both divisions despite – or, in the case of the bio-medical division, thanks to – the pandemic.

This is perhaps proven by the share price rocketing 225% since March.

Chief executive Zvi Marom told Proactive the company had years ago decided to focus on infectious diseases and fast communications with extensive bandwidth.  

Both divisions currently “have the right product in the right moment,” he noted, adding “opportunity is being materialised as of now.”

In fact, the biomedical division provides NATlab diagnostic system, which can quickly identify human pathogens, and the Eco-Med products for waste treatment.

Since the COVID-19 outbreak, BATM has developed tests to use in the hospital and at home and manufactured critical care ventilators.

There are three types of tests under BATM’s belt: the antibody assay, to figure out whether someone has already contracted the virus and developed some sort of immunity; the antigen kit, which reduces false positive results by detecting a specific gene and the molecular diagnostics test to look for multiple respiratory pathogens at the same time.

READ: BATM higher as it unveils three new coronavirus testing kits

Further COVID-19 and flu diagnostics tests kit for home-use are expected to be ready for sale in the next three months, as part of a collaboration with Israeli life science company Novamed.

As a result, revenue in the bio-medical division, which accounts for just over two-thirds of the total, soared by 65% to US$50mln in the six months to June. 

Sales in the networking & cyber division, making up for the remaining 35% of the total, were up 5% to US$27mln in the same period.

But the segment has recently achieved a “fundamental milestone”, in the words of Marom, expected to “create a very nice stream of revenue” for BATM.

In late August, the Israeli firm signed its first tier-1 customer for its NFVTime virtual networking solution.

This system enables network functions to be run on software with a single piece of equipment, rather than requiring multiple pieces of physical hardware, cutting down on time, cost and carbon footprint.

The customer, a telecommunications provider operating in 160 countries and headquartered in Asia, entered a three-year licensing agreement to create virtual networks for its own customers.

House broker Shore Capital believes the contract “represents the emergence of a material, soon to be live, reference customer/site for the group”.

“The market is a materially large one for these virtualisation services with the ecosystem stretching into the many tens of billions of dollars of value, in our view.”

The announcement came weeks after the completion of a proof of concept for uCPE, a networking technology solution which includes the company’s NFVTime operating system, in partnership with computer chip maker Arm.

uCPE was then successfully tested by Vodafone Group PLC (LON:VOD) for use in small and medium businesses networks.

READ: BATM completes proof of concept with Arm and Vodafone

NFVTime can bring in two streams of revenue: mainly by licensing software, though it is a later stage in the cycle of installation of 5G scheduled to start next year.

Secondly, it can also supply producers that make universal customer premises equipment (CPE), which are “small boxes” that enable 5G.

They can provide them with the chipsets licensed to put the software inside the CPE, “and there’s lots and lots of boxes,” Marom told Proactive.

Looking ahead, BATM will continue to invest significantly in research and development, sales and marketing activities to support the organic growth of the business.

The bio-medical division is expected to launch new molecular diagnostics solutions in the second half in anticipation of a second wave of several respiratory pathogens, particularly flu and coronavirus.

In addition, the sale of antigen and antibody COVID-19 testing kits is estimated to continue throughout into next year, with sales to public health authorities in Europe, South America as well as Asia.

Meanwhile, the networking & cyber division forecasts minimal impact on its full-year performance from the pandemic, having returned to normal trading in May sand buoyed its NFV offering.

“We are now planning the next seven to ten years, we have some earth-shattering products that will be delivered in five to seven years,” Marom concluded.