TCM.L Share News (TCM)

Machine-to-machine (M2M) communications technology company Telit continued on the recovery trail in the first half of this year and the second half of 2010 looks like being just as strong, prompting the company to advise that full year results are likely to be ahead of expectations."The first six months of the year have been excellent in terms of revenue and number of units sold, with a direct and positive impact on all parameters down to the net profit line," said the company's chief executive officer, Oozi Cats. Revenue in the first half improved to $59.6m from $36.9m the year before, driven by a strong recovery in Europe. Revenue in the Americas, meanwhile, almost doubled to $12.6m from $6.5m last year; revenue from the Americas now represents 21.1% of the total, up from 16.0% at the end of 2009. The company has switched to reporting its figures in dollars, having previously reported in euros. Around 38% of Telit's revenue in the period ended 30 June 2010 was generated in euros (40% in H1 2009), with the remaining generated in, or linked to, US dollars and other currencies.Adjusted earnings before interest, tax, depreciation and amortisation came to $1.86m, against $0.76m last year. Gross profit surged to $25.17m from $16.91m last year, while the gross profit percentage eased to 42.2% from 45.8%. "We expect our gross margin to stabilise at slightly above 40%," Cats said.