Telit Communications (LON:TCM, PINK:TTCNF) will continue serving the large radar systems market in Europe after agreeing to continue supplying the world’s smallest GSM/GPRS module to Coyote System.
The M2M (machine to machine) communication specialist’s subsidiary Telit Wireless Solutions has entered a framework agreement with Coyote System, covering the supplies of the E865-QUAD modules over the next two years. The company has been using the module in its equipment since 2009.
In addition to that, the parties decided to expand their partnership, which now not only includes the use of the GE865-QUAD in the latest radar warning systems, but also introduces co-branding, illustrating that Telit technology is inside the device, and thus guaranteeing reliable communication.
Coyote System said that it valued the compact size of the module the most as its systems have to work in a limited space.
“The fact that the founder and leading provider of GPS radar warning systems is relying even more on our modules highlights not only the quality of our products, but also demonstrates their versatile uses,” said vide president for sales at Telit Wireless Solutions Felix Marchal.
The radar warning systems distributed by Coyote transmit in real-time the speed limit, alert drivers of mobile and fixed speed cameras in real-time as well as on traffic incidents.
The systems boast 600,000 users in France, the United Kingdom, Belgium, the Netherlands, Italy and the Czech Republic.
Astaire Securities featured Telit in its 'Morning Report', saying the group continues to take share in the global M2M market. It maintained growth through the recent downturn and this rate has accelerated as the overall M2M market has returned to growth.
With its share of design wins ahead of its current market share, Telit should continue to grow faster than a market forecast of a compound annual groth rate of 16.7% over the next five years. "Some profit-taking on the back of a share price re-rating leaves Telit trading on 8.4x FY11, well below the UK sector average as well as recent sector consolidation that support a share level of c.95p/share," the broker said.
Last week, Telit Wireless Solutions said it would soon launch a new module featuring wireless M-Bus transfer technology that forms the basis of smart meters. The market for the new module is quite large as a number of countries and regions have already introduced smart meter with further applications possible in the future.
Earlier this month, Telit reported that revenues in the first nine months of 2010 have grown more that 60% over the same period a year earlier to around US$98 million.