Telit Communications PLC (AIM: TCM) warned that results for the first half will be below expectations but that the recent improvement in average selling price (ASP) of its products will lead to full-year revenues above those from last year.
In a trading statement, the machine-to-machine (M2M) communications group revenues for the six months ended June 30 2009 will be approximately €28 million with a 25 percent growth in the number of units sold during the period compared to the previous first half.
The continued downwards trend in revenues is mainly due to the greater than expected decline in the ASPs of products in the m2m market, in the first four months of the year, continuing the trend that began in the fourth quarter 2008. However, revenues in May and June showed an improvement in the ASP and the board expects to see continued improvement in revenues in the second half of the financial year.