13 Jan 2014 07:00
13 January 2014
TELIT COMMUNICATIONS PLC
("Telit" or the "Company")
Trading Update for the full year ended 31 December 2013; revenue $243.5 million (up 17.4% YoY)
Telit (AIM: TCM), the global leader of machine-to-machine (M2M) communications is pleased to announce a trading update ahead of its preliminary results for the year ended 31 December 2013.
Revenues for the 3 months ended 31 December 2013 are expected to be approximately $72.5 million (3 months ended December 2012: $57.4 million), which represents a quarterly growth of 26.3%. For the full year ended 31 December 2013 revenues will be approximately $243.5 million, an increase of 17.4% above revenues for 2012 (2012: $207.4 million), and above market expectations of $240 million.
Cash at 31 December 2013 is expected to be approximately $23.6 million and net debt as at the same date is expected to be approximately $17.1 million (2012: cash of $21.4 million and net debt of $12.7 million). During 2013, the Company has invested approximately $11 million of its cash in acquisitions.
The revenues for the full year 2013 include, for the first time, approximately $8.5 million recurring revenues from m2mAIR, Telit's Platform as a Service (PaaS), representing growth of 154% from the first half of the year ($2.4 million) to the second half of the year ($6.1 million).
Oozi Cats, Chief Executive of Telit, said "This had been another record quarter for Telit and 2013 has been another double digit growth rate year continuing the trend over the past 4 years. During 2013, we enjoyed the first fruits of our strategy to deploy our PaaS business unit, while generating revenues of $8.5 million for the first time. The recent acquisition of ILST provides Telit with access to additional value added services and customers, providing Telit with an even broader footprint in the m2m value chain. We see tremendous synergies between our wireless modules and connectivity offerings and the ILST portfolio provides us with the ability to further strengthen and solidify our presence in the m2m market.
The recent signing of an agreement to acquire NXP's ATOP (Automotive Telematics On-board unit Platform) business will provide Telit with additional expertise in automotive platforms, which are becoming increasingly dependent on advanced software engineering, as well as a significant customer base which has already designed systems with ATOP. The multi-service capable ATOP platform provides support for a range of features from its single package, including vehicle location & tracking, remote starting and diagnostics as well as business applications such as fleet management. This acquisition also delivers our teams a high level of competence in system security, necessary for protecting not only vehicles but also the increasingly important elements of driver privacy under such applications. Closing of this acquisition is planned to take place during the first quarter of 2014."
Telit expects to release its preliminary results for the year ended 31 December 2013 in the second half of March 2014.
For further information please visit www.telit.com or contact:
Telit Communications PLC +39 06 420 4601
Oozi Cats, CEO
Oozi.cats@telit.com
Yosi Fait, Finance Director
Yosi.Fait@telit.com
Canaccord Genuity +44 20 7523 8000
Simon Bridges
Peter Stewart
Notes to editors
Telit is a global leader of machine-to-machine (M2M) communications providing wireless module technology via its brand Telit Wireless Solutions, enhanced by managed and value added services, including connectivity via its business unit m2mAIR. Telit is dedicated to M2M communications for over 12 years and constantly advancing technological leadership from 6 R&D centers around the globe. Telit offers an extensive portfolio of quality cellular, short-range, and GNSS modules. By supplying business scalable products interchangeable across families, technologies, and generations, Telit is able to keep development costs low and uniquely protect customers' design investments.
Value added services from m2mAIR combine solutions for module, SIM, and subscription management with M2M connectivity, delivering business value through enhanced network performance, cost control, security, troubleshooting and a ready-to-use, off-the-shelf, cloud platform to connect enterprise IT systems to m2m-connected devices and machines for business-critical use. Addressing the critical element of cost-control in M2M integrations, m2mAIR offers an innovative business approach which transforms cost of connectivity into a bill-of-material (BOM) component.
Telit sells its products through a network of 32 sales offices and 60 distributors to more than 5,000 customers in 80 countries around the world.