LONDON (Alliance News) - Telit Communications PLC on Monday expressed confidence for the remainder of 2014 on a positive outlook for the machine-to-machine technology industry, as it posted a higher pretax profit in the half year to end-June.
The wireless technology company posted a pretax profit of USD7.3 million, up from USD5.6 million, as revenue rose to USD138.2 million from USD108.5 million in the previous year, although this was partly offset by higher cost of sales.
Revenue growth was particularly strong in the Americas, where revenue rose to USD65.9 million from USD45.7 million. Telit also saw revenue grow in Europe, the Middle East and Africa to USD58.1 million from USD52.1 million.
Telit saw its margin improve to 39.5% from 37.6% in the half year, which it attributed to further improvements in its hardware business and the additional of connectivity and Cloud services to its business model.
The company completed its acquisition of NXP Semiconductors NV's Automotive Telematics On-Board unit Platform (ATOP) business. The new business has been fully integrated into Telit's newly launched Automotive Solutions business.
"Our strong position in the Machine-to-Machine market together with our m2mAIR business unit is expected to lead Telit to further growth and further improvement in our financial results," said Chief Executive Oozi Cats in a statement.
Shares in Telit were trading down 2.0% at 271.65 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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