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Telit Communications Lowers Full-Year Guidance Despite Revenue Rise

12th Oct 2015 07:48

LONDON (Alliance News) - Telit Communications PLC Monday reported a rise in revenue in the first nine months of its financial year but lowered its forecasts for the full year.

The machine-to-machine communications and 'internet-of-things' company said revenue in the nine months ended September 30 grew 15% to USD236.1 million from USD205.2 million the year before. Third-quarter revenue rose 19% to USD80 million from USD67.1 million.

However, Telit lowered its guidance for the full year, saying it now expects full-year revenue to be in the region of USD330 million to USD340 million, while adjusted earnings before interest, tax, depreciation and amortisation will be between USD40 million and USD45 million.

"I am pleased to report that Telit has delivered a strong performance over quarter three and the past nine months. We continue to see robust performance from the automotive product line and the internet-of-things services, as well as from our traditional business of industrial machine-to-machine," Chief Executive Oozi Cats said in a statement.

"We have moderated our annual guidance predominantly due to customers postponing their new deployments in order to deploy LTE CAT-1 in their new products, which is expected to be certified by the operators and commercially available in early 2016; as well as delays in a few customers' projects, which will mature in 2016. Therefore our confidence in our longer term growth forecasts, as reflected by market expectations, remains strong," Cats added.

Shares in Telit Communications were trading down 10% at 295.27 pence Monday morning following the announcement.

By Karolina Kaminska; [email protected] @KarolinaAllNews

Copyright 2015 Alliance News Limited. All Rights Reserved.


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