LONDON (Alliance News) - Telit Communications PLC on Tuesday said it expects a double-digit growth in 2018 earnings.
The wireless machine to machine modules maker also said it is progressing with the reorganisation of the company following the sale of automotive division to TUS International Ltd. The USD105 million transaction was agreed in mid-July, however, Telit noted that it is still ongoing.
Telit said it is awaiting receipt of the permission of the Hong Kong Stock Exchange for publishing of TUS' shareholder circular with regard to approval of the transaction.
The disposal is expected to close the end of January.
Telit expects to generate revenue between USD415 million and USD425 million in 2018, with adjusted earnings before interest, taxes, depreciation, and amortization totalling about USD30 million to USD35 million.
In 2017, Telit reported revenue and adjusted Ebitda of USD374.5 million and USD18.1 million, respectively.
Looking further ahead, the company said it has now identified a further USD10 million of future cost savings. Together with an anticipated increase in revenue and stabilised gross margins, Telit looks forward to significantly improved profitability and cash generation in 2019.
"The expected sale of our automotive division for some USD105 million will reinforce the company's financial position and support its future growth and strategic flexibility," aside Telit Chairman Paolo Dal Pino.
"The core of the business has continued to trade well and in line with our expectations despite the operational and managerial changes during the year," added Paolo Dal Pino.
Telit shares were down 0.1% on Tuesday at 137.90 pence each.