A world leading provider of antennae for the small but fast-growing area of wireless broadband, Israel-based MTI Wireless Edge is waiting for the market to take off.

Wireless telecommunication, of which antennae are an essential part, holds many advantages over its cable-based relation (it’s faster and more convenient, for starters). The Motorolas and Intels have already invested many hundreds of millions in what is still an embryonic market. And now there is WiMAX, a new standard designed to permit communication between broadband wireless access equipment, another area dependent on antennae. Finance director Moni Borovitz admits this area is ‘still niche’ but that it is seeing huge investment.

Supplying its wares to wireless OEMs and already cash generative, MTI’s margins of just over 40% are pretty solid too and could improve. The company’s success thus depends on increasing its revenues – and this is almost entirely reliant on the success of the wireless broadband market. Says Borovitz: ‘We are world market leader with a 25% share and we have very close relationships with our leading customers. Our key target is to maintain our hold and therefore grow along with the market.’

Recent nine-month figures to September show entirely organic sales growth of 40% to $11.8m (£6.2m) with net profits jumping 94% to $2.4m. 30% of MTI units sold in the first nine months of the year were WiMax-compliant antennae. For the full year, house broker Corporate Synergy foresees $17m revenues, giving $3.85m profits and diluted earnings per share of 7.2c (3.6p).

Added spice is that MTI looks a likely takeover target for one of the communications giants.

Floated at 39p in March, the shares have been up as high as 55.5p and back to 33p and look worth a gamble at current levels on an undemanding price-earnings ratio.