BATM Stock Plunges Due to Supply Failure

(Reuters) -

The Israel-based telecom and medical equipment maker BATM Advanced Communications said it expected revenue and profit in the first half of 2013 to be below expectations hurt by a delay in supply from third parties. Shares of the company fell as much as 25 percent.

BATM said components supplied by third parties to its medical division failed to arrive last month, forcing the company to postpone deliveries.

BATM also said that it stopped supplying certain major customers in its medical division last month, in line with its policy to ship products only once payment is made, resulting in lower-than-expected revenue in the unit.

The medical division makes laboratory diagnostic and sterilization equipment and accounted for nearly half of its sales in 2012.

BATM, which also manufactures voice and data networking and connectivity hardware, added that it expects full-year results to be higher than the year earlier as June trading started well, and the second half is expected to be in line with its expectations.