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Ahead of releasing its results, for the twelve months to December 31, the company said that it expects earnings (adjusted EBITDA) to be in line with guidance between US$40-45mln.
The performance of the group’s automotive division, which at US$39.6mln grew revenues by about 60%, was highlighted as a notable success.
Chief executive Oozi Cats described it as “another year of strong growth” as he highlighted that Telit had delivered 25% revenue growth over the past six years.
"In order to exploit the considerable opportunities across the fast growing IoT industry, we have continued to invest across the group, particularly in products for the automotive market as well as for our industrial product line and for our cloud platform infrastructure,” Cats said.
“With the increasing need for services across the IoT industry, we expect our IoT services business to continue to grow significantly over the next few years.
"In addition to the group's revenue growth, we expect to benefit from the operational leverage inherent in the organisation which will enable us to improve margins and our ability to generate cash over the next few years.”
Cats added that he was confident of maintaining double digit growth in the current financial year.
David Johnson, analyst at Northland Capital, pointed out that the performance was in line with the company’s guidance, which had been reduced in October as some deployments in the US slowed while customers incorporated some new wireless technologies into new products.
“Good growth elsewhere and margins should benefit going forward through operational leverage,” Johnson said in a note.
“The Internet of Things continues to be a core area of growth and Telit provides exposure through both module sales and services (connectivity and PaaS).”
Telit shares moved 4.75p, 2.2%, higher to trade at 218.75p each.