LONDON (Alliance News) - Telit Communications PLC said Tuesday its annual loss narrowed in 2018 as the company's revenue increased sharply.
In 2018, Telit's pretax loss narrowed to USD39.8 million from USD56.8 million in 2017. The company's revenue increased 14% to USD427.5 million from USD374.5 million the year before.
The company said its Cloud & Connectivity revenue jumped 23% in 2018 to USD34.1 million.
"We made significant financial progress last year. We delivered double digit revenue growth, saw a major improvement in the cash generation and stabilising gross margins - returning to cash profit in the second half," said Executive Chair Paolo Dal Pino.
"We also further rationalised our operational structure, better integrated our products and services and reshaped the Internet of Things platform organisation. The recent sale of the automotive division also frees up considerable internal resources and provides significant cash inflow."
Telit sold its Automotive division for USD105 million at the end of February, post period-end.
The company did not give an update on the UK Financial Conduct Authority's ongoing investigation into the "accuracy of earlier announcements" made by the company, including a trading update on April 25 2017 and a share placing announced on May 4 of the same year, which was completed May 5.
Telit noted it has cooperated fully with the FCA and "will continue to do so". Telit added its board of directors "has changed entirely since the events in question".
Dal Pino added: "We are well positioned to exploit the growth opportunities in the fast growing and dynamic Internet of Things market. With improved operational structure, we expect our financial performance to significantly improve as our revenue grows, and we see the benefits of a reduced cost base, strong balance sheet and stabilising gross margins."
Shares in Telit were down 2.9% Tuesday at 165.00 pence each.