Megabuyte - Technology sector intelligence

We initiate coverage on Cambridge Broadband Networks (CBN), a provider of point to multi-point microwave solutions aimed particularly at backhaul for wireless networks. Microwave’s share of mobile backhaul is inching up from the current 55% level, with CBN doing well particularly in emerging markets, where copper or fibre is less prevalent, and the outlook for backhaul demand is very strong given rapid growth in mobile data usage. The company has incurred losses of £42m to date, though turned EBITDA profitable in FY09, and according to the FY09 accounts the company anticipates raising additional growth funding by the end of 2010. Premium subscribers can read the full analysis here.

Avanti to support BT in Scilly venture

Following last Friday’s successful satellite launch, Avanti Communications has signed a 5-year, £1.2m contract with BT to provide satellite broadband services, which BT will use in its publicly-funded Cornwall and Isles of Scilly project (Premium Plus readers see here). This contract is yet another small piece of a very large and constantly moving jigsaw of rural broadband provision, though at no more than an estimated 1% of the homes to be passed in Cornwall, satellite broadband’s current role is at the margins, with all to prove for a new technology. Read our full thoughts on the announcement in Newswire Plus.

DataSolutions drives renewed growth at GB Group

Having seen revenues contract by 7% in the year to March, interim results from data management specialist GB Group show a return to growth in the six months to September. Revenues in the first half increased 10% to £11.6m, driven by an impressive 20% jump in revenues from the DataSolutions business to £6.5m, and profits were £0.7m, up from £0.3m in H1 2010. Revenues from the DataAuthentication business were flat at £5.1m. The first half also saw a significant board change with SSP founder and Chairman David Rasche joining as a non-exec and has today been appointed as Chairman. GB also moved from the full list to AIM during the first half. Read our first thoughts on the results in Newswire Plus.

Sanderson confirms recovery with strong results

Supplier of software and IT services to the manufacturing and retail sectors Sanderson has confirmed a strong recovery in trading for the year to September. Revenues increased 8% to £27.0m and operating profits jumped from £0.3m to £1.7m. Perhaps as significantly, order intake was up 22% to £15.6m suggesting that the improved performance is likely to continue into the new year. Cash flow also continued to be strong helping Sanderson to pay down another £2m of its debts. Having peaked at over £12m, Sanderson has now brought its debt down to a much more manageable £7.8m. Premium subscribers can read our full results review in Newswire Plus.