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Telit Communications narrows losses in ‘challenging’ first half, sees recovery for rest of the year

Published: 05:09 15 Sep 2009 EDT

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Telit Communications PLC (AIM: TCM) narrowed its losses in the first half, a period which it called “challenging in terms of revenues but positive for Telit in terms of improved operating results and number of units sold, which showed a substantial improvement”.

The machine-to-machine communications specialist reduced the pretax loss to €2.05 million in the six months ended June 30 2009 from a €3.19 million loss a year earlier, on revenues of €27.7 million, down from €30.1 million previously.

CEO Oozi Cats said: “We are pleased to have been able to achieve such performance during the first six months of the year in spite of the effects of the worldwide economic recession on the m2m industry and the effects of foreign exchange rate fluctuations on our business. The global demand for m2m cellular wireless solutions has grown in terms of units but the strong erosion in the average sales price offset the increase in units sold.”

The outlook for the rest of 2009 looks positive for Telit, and despite the challenges in the m2m market the company expects to be back on track with renewed growth. It expects that the EMEA region will improve substantially during the second half based on the current backlog in hand.

The improvements in its costs base and in the EMEA operations, coupled with the additional cost savings from the move of manufacturing to China, will serve to improve top line results as well as profits, Telit said.

It intends to continue to take advantage of the considerable opportunities arising in this growing global market, it added.

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