3rd Aug 2015 07:33
LONDON (Alliance News) - Telit Communications PLC Monday said it expects to see further growth and improvement in its financial results as it posted a rise in pretax profit for its first half.
For the half year to end-June the communications technology company posted a pretax profit of USD7.4 million, up from USD6.3 million a year before, as revenue rose to USD156.3 million from USD138.2 million.
Revenue growth was driven by a strong performance in the Asia Pacific region, which offset a flat performance in Europe, the Middle East and Africa as challenging conditions in the Eurozone economy continued, and a fall in revenue in the Americas region. The decline in the Americas was as a result of a components shortage due to strong demand by the smartphone industry, which led to several component supply constraints, Telit said.
This issue has since been overcome, Telit said, and it expects full year revenue from the Americas region to show "substantial growth compared to 2014."
The company reiterated its guidance for the full year, continuing to expected adjusted earnings before interest, tax, depreciation and amortisation between USD42 million and USD47 million, and revenue of between USD347 million and USD354 million.
"Our focus and significant investments over the past few years have started to pay off with an emerging market-leading platform of modules, connectivity and data/application services allowing us to capitalise more and more on the rise of the internet-of-things," said Chief Executive OFficer Oozi Cats in a statement.
"The outlook for the rest of 2015 and the future is positive for the IoT industry and for Telit. We expect our strong position in the IoT modules market together with our fast growing automotive and services business units to lead Telit to further growth and further improvement in financial results," Cats added.
Shares in Telit were down 0.8% at 325.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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