Telit Communications H1 profits grow despite Covid-19

(Sharecast News) - Internet of Things enabler Telit Communications expects first-half profits to have grown in the six months ended 30 June despite "some slowing" in customer demand as a result of the Covid-19 pandemic.
However, revenues were expected to be approximately $166.5m, down on the $180.3m brought in a year earlier.

Encouragingly, Telit noted that IoT connectivity and platform services revenues grew 11.8% year-on-year despite market conditions to $20.9m - demonstrating the positive impact of its strategic refocusing efforts carried out in 2019.

Telit added that it was in a "robust financial position" to weather the Covid-19 storm, with $55.7m of cash on hand, and said it was continuing to benefit from strategic changes implemented before the coronavirus outbreak.

The AIM-listed group did caution that revenues for the full year would be below those of the prior year but highlighted that it still expects to meet expectations for both adjusted underlying earnings and profit in cash.

Chief executive Paolo Dal Pino said: "We are pleased we were able to improve our first-half result and cash generation versus last year.

"Management reacted fast to the crisis generated by the Covid-19 pandemic and delivered an effective response to customer demand pressures by executing a targeted programme of cost reductions and increased resilience designed to protect our supply chain, strategic plans and financial targets from material impact."

As of 1005 BST, Telit shares had shot up 8.93% to 131.80p.