LONDON (Alliance News) - Telit Communications PLC on Monday said it is confident it will maintain its double digit revenue growth in 2016, underpinned by a positive outlook for the 'internet of things' space, as it reported a rise in pretax profit in 2015.
Telit provides machine-to-machine communication products and services.
Telit Communications said its pretax profit rose 14% to USD15.9 million in 2015 from USD13.9 million in 2014, as revenue rose 13% to USD333.5 million from USD294.0 million. Within this, Telit saw a 60% rise in revenue from its automotive business to USD39.6 million from USD24.8 million, and a 30% rise in revenue for its Services division to USD26 million from USD20 million.
The company said that the outlook for both the automotive and industrial 'internet of things' sectors continues to be "very encouraging", and acquisitions it has made over the past few years have enhanced its cloud platform capabilities, helping drive recurring revenue.
"After several years of making acquisitions and high research and development investment, we are now in a position to scale the business and benefit from our operational leverage, and as such, we will continue to reduce research and development, sales and marketing, and general and administrative costs as a percentage of revenue," said Chief Executive Oozi Cats in a statement.
"With our global reach and market leading position in modules as well as our connectivity, connectivity management and platform capabilities, we are well positioned to exploit these market developments. We are confident of maintaining our double-digit revenue growth in the current financial year," Cats added.
Shares in Telit were up 15% at 240.75 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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