(Alliance News) - Telit Communications PLC said Tuesday it has improved both its financial position and operating performance in 2019 despite reporting a fall in revenue.
In a trading update for the year end at December 31, the internet of things firm said its total revenue, including two months contribution from the automotive business sold in February 2019, is expected to be USD391.0 million.
This would be an 8.5% fall from 2018 where revenue came in at USD427.5 million, which included full year revenue from the automotive business.
Meanwhile revenue excluding the automotive business expected to rise 7.8% to USD381 million from USD353.4 million a year ago.
Telit sold its automotive division, Telit Automotive Solutions NV, to TUS International Ltd for USD105 million in February 2019.
Internet of Things Cloud and connectivity revenue expected to be USD41.0 million, a 20% increase from USD34.1 million in 2018, driven by a strong performance on both the connectivity and the platforms businesses, the company said.
The company said it expects adjusted earnings before interest, tax, depreciation and amortization, excluding the automotive business, to be in range from USD37.0 million to USD40.0 million, compared to USD30.1 million in 2018, including the automotive business.
Paolo Dal Pino, chief executive officer, said:"Telit enters 2020 as a more focused, agile and innovative group, well positioned to capitalize on growth opportunities in the rapidly expanding industrial internet of things market."
Telit expects to publish its full year results in March.
In November the company had said revenue, excluding the automotive business, was up by 7.8% to USD274.5 million in the nine months to the end of September. While Internet of Things Cloud and connectivity revenue rose by 18% to USD29.4 million.
Telit Communication shares were down 2.6% in London at 163.60 pence each on Tuesday afternoon.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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