(ShareCast News) - BATM Advanced Communications, a provider of real-time technologies for networking solutions and medical laboratory systems, has managed to sustain its performance in the first half of 2016 due to the success of its Diagnostic Unit and the recovery of its Networking and Cyber division.Gross margin improved to 32.8% during the six-month stretch to 30 June but the group's revenue decreased by $2.5m to $45.1m. The group recorded an operating loss of $0.6, meanwhile its net loss reduced to $1.5m compared to $2m last year.The firm's biomedical division, which makes up 57% of the group's total revenue, improved its gross margins to 26%. Overall revenue did however fall by 2.6% to $25.8m. However, sales at the Diagnostics unit in particular were strong, jumping by 19.2% while adjusted operating profit improved 300%.Customer numbers increased, with 325 diagnostic machines being sold during the period. The Diagnostic unit's joint venture company, Adaltis Bio Med Company, is already making good progress in China, the company said in a statement.The group also acquired a developer and distributor of analytical instruments called Green Lab Hungary Engineering, for $3.8m to strengthen the Group's regional distribution network and expand the Group's ecologic activities.In the Networking and Cyber Division, which accounted for the remainder of the group´s total revenues in the period, the gross margin improved to 42%. Revenues however decreased by 8.6% to $19.1m. Earnings increased in comparison to the previous year, allowing the firm to break-even compared to the operating loss of $0.2m it recorded in 2015. The networking unit had over 35 new customers purchase its comprehensive portfolio of solutions.The group's balance sheet remained strong with effective liquidity at $18.6m but was still lower than the $23.8m seen at the same stage of 2015.Chief Executive Dr Zvi Marom was confident for the future given the company´s half-year results."Looking ahead, we are excited by the potential [of] our Diagnostics business where we have positioned ourselves to capture a significant portion of the growing Chinese diagnostics market. In addition, we expect the Green Lab acquisition to provide access to a larger number of markets for our ecologic solutions in the Pathogenic Waste Treatment and Sterilisation business," said Marom.The reported net loss of $0.9m led to a basic loss per share of 0.23c.Shares fell 8.67% to 17.13p on Tuesday.