Sign up USA
Proactive Investors - Run By Investors For Investors

Telit Communications reveals strong revenue growth for 2015

Revenues rose by more than 13% last year, and earnings are expected in line with expectations at US$40-45mln.
Telit Communications reveals strong revenue growth for 2015
The automotive m2m division was a notable success, with 60% revenue growth


Machine-to-machine specialist Telit Communications (LON:TCM) has told investors it expects full year revenues to have risen just over 13% to US$333.5mln.

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.


Register here to be notified of future TCM Company articles
View full TCM profile

Telit Communications Plc Timeline

April 11 2016

Related Articles

February 28 2017
The firm has established connections with more than 4,000 universities in 160 countries enabling it to capture all of the intellectual property available
eSports player at a Gfinity event
April 13 2017
eSports are tipped to generate more than £1bn a year in a global revenue by 2020, while audience numbers are set to go through the roof too
Brady trading screen
September 12 2016
The shares are up 22% year-to-date despite difficult market conditions
Copyright ©, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use