17th Mar 2014 11:11
LONDON (Alliance News) - Telit Communications PLC Monday reported higher profits for 2013, driven by a 17% increase in revenues, which was boosted by recent acquisitions.
The group reported pretax profit of USD12.0 million in 2013, compared with a pretax profit of only USD4.9 million in 2012, as revenues rose 17% to USD243.2 million from USD207.4 million a year earlier.
The wireless technology company said revenues were boosted by a significant increase in revenues from m2mAIR Telit's Platform-as-a-Service, the group's value added, connectivity and cloud-platform services business unit, which benefited from several acquisitions during the year.
Telit said gross margin increased to 38.02% in the year from 37.1% in 2012, due to its positioning in the machine-to-machine industry and the shift in the business model to services with recurring revenues.
During the year the group invested approximately USD11 million of its cash in acquisitions, and its net debt at year end stood at USD11.7 million.
In the period, it acquired US-based ILS Technology LLC, and in December its subsidiary entered into an agreement with a subsidiary of NXP Semiconductors N.V., to purchase NXP's ATOP business.
The company said it remains confident about the current year outlook and delivering growth with the support of its recent acquisitions.
"Our strategic acquisitions in 2012 and 2013 have added a layer of recurring revenue to Telit's financial performance, and we expect them to increase their contribution over the coming years," said Chief Executive Oozi Cats in a statement.
It said it looks forward to continued organic business expansion and is constantly seeking further expansion opportunities through new technologies or by gaining access to new territories and new market segments.
Shares in Telit were trading 7.0% higher Monday morning at 206.59 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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