Telit Communications PLC Half year trading update (2296U)

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RNS Number : 2296U

Telit Communications PLC

11 July 2018

Telit Communications PLC

Half year trading update

London, 11 July 2018 - Telit Communications PLC ("Telit", "the Group", AIM: TCM), a global enabler of the Internet of Things (IoT), has published a trading update for the six months to 30 June 2018.

Group revenue is expected to be in the order of $201 million (H1 2017: $177.6 million), an increase of 13.2% year-on-year, with a revenue contribution from Telit's connectivity and IoT platforms services in the order of $16.5 million, up 16.2% (H1 2017: $14.2 million).

Gross profit margins have stabilised following the declines seen in 2017.

As at 30 June 2018, Group net debt had decreased by $5.2 million to $25 million (31 December 2017: $30.2 million).

The Group plans to publish its interim results during the first half of September 2018.

Yosi Fait, Chief Executive, commented:

"We look forward to reporting a strong performance in the first half of the financial year, in line with our expectations. Revenue growth was driven by the increase in delivering of LTE products, mainly in the North American market, ramp up of new designs and strong demand for our connectivity capabilities.

"Our cost optimisation plan, initiated during the last quarter of 2017, is on track and we are already seeing some of the operational and financial benefits.

"Our gross margins have now stabilised and together with the revenue growth and costs rationalisation, we are making headway towards a return to being a sustainably cash generative business."

Enquiries:

 
Telit Communications PLC                   Tel: +44 203 289 
 Yosi Fait, Chief Executive Officer                    3831 
 Yariv Dafna, Finance Director 
                                           Tel: +44 20 7220 
  finnCap (Nomad and joint broker)                     0500 
  Henrik Persson/Giles Rolls (corporate 
  finance) 
  Tim Redfern/Richard Chambers (corporate 
  broking) 
 
Berenberg (Joint Broker)                   Tel: +44 20 3465 
 Chris Bowman/Mark Whitmore/Ben Wright                 2722 
 
Instinctif Partners                        Tel: +44 20 7457 
                                                       2077 
Adrian Duffield/Chantal Woolcock

About Telit

Telit (AIM: TCM), is a 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, Wi-Fi, 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.

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Copyright (c) 2018 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.

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