SHARES in antenna maker Poynting Holdings jumped almost 18% to R1 yesterday after it announced its earnings for the year to June could increase by at least 100% from the previous year.
Yesterday's updated trading statement followed an announcement last month that headline earnings for the year ended June would be at least 20% higher than the previous year's.
In February, Poynting recorded a 15% increase in revenue for the six months to December, and its earnings before interest, taxes, depreciation and amortisation reached R5,81m, an improvement of 110% from the previous period.
The company said, at the time, it would expect similar or better financial results for the period under review.
"Commercial revenues and profits will be better due to healthy existing product sales and additional revenue from the micro base stations for which significant orders are already in place or imminent," Poynting said.
The company said "historically" it had always had a stronger performance in the second half of a financial year and expected that trend to continue.
"Overall performance is, however, never certain due to the uncertainty associated with the commercial division sales, which can change relatively quickly due to fluctuations in market sentiment," the company said.
Poynting also said last year that commercial products in the cellular data space were benefiting from the growth in cellular data locally and internationally.
"Cellular antennas now comprise the majority of revenue and also show the fastest growth.
"Sales of products in the Wi-Fi/WiMax space have been shrinking during the past two years," the company said.
Poynting said its defence division was transferring the manufacturing of more of its largest volume antenna products to China. "We have built valuable relations and acquired rare experience in the past three years where we have been engaged in outsourced manufacture to China," the company said.