Telit Communications PLC Year-end trading update (7337T)
January 10 2017 - 2:00AM
UK Regulatory
TIDMTCM
RNS Number : 7337T
Telit Communications PLC
10 January 2017
10 January 2017
Telit Communications PLC
Year-end trading update: revenues up 11% to approximately $370
million; IoT Services up 35%.
London, 10 January 2017. Telit Communications PLC ("Telit", the
"Group", AIM: TCM), a global enabler of the Internet of Things
(IoT), has published a year-end trading update for the year ended
31 December 2016.
Group revenues are expected to be approximately $370 million
(2015: $333.5 million), an increase of 11%. The revenues in H2 2016
are expected to be approximately $204 million (H2 2015: $177
million), an increase of 15% on H2 2015.
The Group expects adjusted EBITDA and EPS to be in line with the
guidance at $54-$59 million (2015: $45.3 million) and 26-30 cents
(2015: 21.7 cents) respectively.
IoT Services is expected to show a 35% increase in revenues to
approximately $35 million (2015: $26 million), with a gross margin
north of 60%
Americas. As anticipated, the certifications of the new LTE
Cat-1 modules and subsequent shipment and deployment re-kindled the
strong growth in the region. Revenues are expected to be
approximately $149 million (2015: $129.4 million), an increase of
15%, with H2 revenues up 26% on H2 2015.
EMEA. Revenue growth has continued to be modest in the region,
mainly due to the softness of the European markets and the very
slow technological shift from 2G to 3G and 4G. The region is
expected to report modest growth to approximately $137 million
(2015: $133.2 million). As stated before, the Group expects this
region to deliver improved growth in 2017.
APAC. The region continues to show strong double-digit growth
and revenues are expected to be approximately $84 million (2015:
$70.9 million), up 18%, with H2 revenues up 27% on H2 2015.
Net debt reduced by $10.4 million to $18.7 million at 31
December 2016, after payment of an interim cash dividend of
approximately $3 million during H2 2016 (net debt at 30 June 2016:
$29.1 million).
Oozi Cats, Telit Chief Executive, said,
"Our solid organic growth in 2016 has been driven by both our
IoT modules in the Products business line and our IoT Services. The
accelerated growth in H2 was backed by advanced LTE products in the
US (mainly LTE Cat-1) and with our end-to-end IoT solutions -
encompassing both connectivity and platform capabilities -
continuing to see strong demand.
"In 2017, we will launch the next generation LTE Cat-M and
NB-IoT products maintaining our leading edge in the growing
market.
"We see a growing demand from all sectors, including traditional
industries, for our IoT solutions as the implications for better
productivity and profitability, as well as new opportunities and
markets, become clearly apparent.
"Companies and enterprises are not looking for pieces of
technology, but for an end-to-end solution. Our ability to provide
an entire IoT solution is a major advantage, as this is simplifying
and hastening our customers' go-to-market requirements.
"Based on the positive cash generated and our committed credit
line, we will continue to seek acquisitions to strengthen and
broaden our product lines and IoT services capabilities."
Telit expects to publish its results for the year ended 31
December 2016 on 13 March 2017.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Telit Communications PLC Tel: +44 20
Oozi Cats, CEO 3289 3831
Yosi Fait, Finance Director & President
Canaccord Genuity Limited (Nominated Tel: +44 20
Adviser and Joint Broker) 7523 8000
Simon Bridges/Cameron Duncan
Berenberg (Joint Broker) Tel: +44 20
Chris Bowman/Ben Wright 3465 2722
Instinctif Partners Tel: +44 20
7457 2020
Adrian Duffield/Chantal Woolcock
About Telit
Telit (TCM.L), is the global leader in Internet of Things (IoT)
enablement. The company offers the industry's broadest portfolio of
integrated products and services for end-to-end IoT deployments -
including cellular communication modules in all technologies, GNSS,
short-to-long range wireless modules, IoT connectivity plans and
IoT platform services. Through the IoT Portal, Telit makes IoT
onboarding easy, reduces risk, time to market, complexity and costs
for asset tracking, remote monitoring and control, telematics,
industrial automation and others, across many industries and
vertical markets worldwide.
# # #
Copyright (c) 2017 Telit Communications PLC. All rights
reserved. Telit and all associated logos are trademarks of Telit
Communications PLC in the United States and other countries. Other
names used herein may be trademarks of their respective owners.
This information is provided by RNS
The company news service from the London Stock Exchange
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