Machine–to machine (M2M) is a way to wirelessly connect devices to a network to enable monitoring of real-time information for a range of equipment. Uses include monitoring data from vending machines, trucks, heart monitors and so on.

The two companies will offer a bundled package that will enable M2M customers to use Telefonica’s global wireless network with Telit’s module hardware and software technology.

Oozi Cats, Telit’s chief executive, said: “This unprecedented bundle from Telit and Telefonica signals a paradigm shift in the industry because finally any M2M service or solution provider of any size can have the same quality of service, performance, pricing and support as the largest players in the industry."

He added that the new service will enable M2M service providers and application developers to bring solutions more quickly to market, provide technical support over the entire product lifecycle, offer enhanced monitoring capabilities and lower tariffs for fixed and mobile applications. 

The new service will initially launch in EMEA (Europe, Middle East and Africa), South America and selected countries by the third quarter of 2012. 

Telefonica has a customer base of more than 300 million customers around the world with a strong presence in Europe and Latin America. In the UK, it owns mobile group O2.

Telit Communication’s (LON:TCM) today told investors that chief executive Oozi Cats has bought an additional 300,000 shares at 44 pence each, increasing his stake to 19.75 per cent of the company.

The transaction, which took place on Friday, may be taken by some investors as a vote of confidence from the Telit boss after the group warned of project delays on the same day.

On Friday Telit revealed that delays have had an impact on revenues and profits, which will now be lower than market expectations.

For the nine months to September 30 revenues were US$128.5 million, up 31 per cent on the same period last year.

But in a stock market statement issued this morning Telit said: “Whilst revenue for the final quarter of the year will be strong, the impact of a delay in the deployment of a few significant projects which were originally expected to take place during 2011 will mean that revenues for the year ending 31 December 2011 will be lower than current market expectations and profits will be significantly below current market expectations.”

Telit is a specialist in the field of wireless machine-to-machine communications (M2M). Put simply M2M enables one machine to talk to another machine via a wireless network.  

Telit is the only pure play M2M company listed in London and one of the market’s big three players.

In March it completed the US$23 million acquisition of Motorola’s M2M business, which made it the largest pure-play specialist in this arena.

Machine-to-machine communications specialist Telit (LON:TCM) said this morning revenues and profits will be lower than market expectations.

It cited the delay in the deployment of a number of projects for the miss. For the nine months to September 30 revenues were US$128.5 million, up 31 per cent on the same period last year.

But in a stock market statement issued this morning Telit said: “Whilst revenue for the final quarter of the year will be strong, the impact of a delay in the deployment of a few significant projects which were originally expected to take place during 2011 will mean that revenues for the year ending 31 December 2011 will be lower than current market expectations and profits will be significantly below current market expectations.”

Telit is a specialist in the field of wireless machine-to-machine communications (M2M).

Put simply M2M enables one machine to talk to another machine via a wireless network.  

Telit is the only pure play M2M company listed in London and one of the market’s big three players.

In March it completed the US$23 million acquisition of Motorola’s M2M business, which made it the largest pure-play specialist in this arena.

Telit Communications (LON:TCM) said that it expects to report a 36 percent uplift in first half revenues.

The group’s first half results statement, for the six months ended 30 June 2011, is scheduled for 20 September 2011. Overall the board is confident that trading remains in line with expectation for the year as a whole, Telit told investors.

The group expects that revenues will come in at US$81 million for the six months ended 30 June 2011, a 36 percent improvement compared with the US$59.6 million generated in the same period of last year. Net cash is expected to come in at US$2.4 million for the first half.

Telit is a specialist in the field of wireless machine-to-machine communications (M2M). Put simply M2M enables one machine to talk to another machine via a wireless network.  Telit is the only pure play M2M company listed in London and one of the market’s big three players.

Crucially Telit completed a deal to acquire Motorola's m2m division, and through the operational integration that’s occurred to date that business unit contributed around 20 percent of group revenues.

Since then the group has continued to blaze the acquisition trial. Yesterday it announced a US$2.9 million deal to buy GlobalConect, a company that provides the wireless connection used in machine-to-machine applications created by companies like Telit.

The newly-acquired company it is expected to become a major “building block” of the enlarged Telit business. Around US$700,000 of the acquisition costs will be met in cash, while 800,000 shares are being issued at 170 pence each. 

Telit chief executive Oozi Cats said: "Adding wireless connectivity to our offering is an important factor for Telit's continued growth and success. 

“Our customers expect superior m2m solutions from one source and with the acquisition of GlobalConect we will now be in a position to address their needs more comprehensively."

GlobalConect founder Dan Amir will stay on as Telit’s head of connectivity activities.

He added: “I am excited about the move to Telit.  We have an opportunity to leverage our activity within Telit's global customer base to contribute significantly to building Telit's service offering."

Earlier this month a study by Beecham Research, a consultant specialising in the M2M market, said Telit's market share of the ‘modules’ market over 2010 rose from 12.4 per cent in 2009 to 16.1 per cent in 2010.

If Telit’s acquisition of Motorola’s M2M unit earlier this year is included in Beecham’s analysis, Telit’s share of the global industrial grade m2m modules market jumps to 22.2% on a pro forma basis.

Fait is a certified public accountant, he began his career at Ernst & Young Israel before moving on to hold a number of executive positions with private and public companies. Notably he has previous experience in the telecommunications industry through his role as chief financial officer at Israel’s first mobile phone operator, Pelephone Communications.

Chief executive Oozi Cats said: "It is with great pleasure that I welcome Yosi to Telit's board of directors.

“I am confident that Yosi's vast experience as CFO of a mobile network operator and as CEO of publicly traded companies will further strengthen Telit's board and will focus our continuous efforts to increase shareholder value.”

Going forward Telit said that Dafna will be responsible for the day-to-day operations of the group’s finance function, while Fait will have overall responsibility for its finance strategy and business development functions.

Telit is a world leader in machine-to-machine (M2M) communication, which very simply allows machines to talk to each other via a wireless network. It is the only pure play M2M company listed in London and it is one of the market’s big three players.

M2M communications has multiple applications. The technology will allow new electricity and gas meters installed in a house to remotely send data back to a utility provider and cars to send information to insurance firms or to the nearest search and rescue team. 

In fact, technology exists today to allow your car to talk to your mobile phone, or your fridge to your stove. And as smaller and cheaper computers are designed to process more data while consuming less power, so the M2M market will continue to expand and the number of applications that will be completed remotely will increase exponentially.

According analysts forecasts the market could be worth $1.5 billion by 2014.

Describing itself as a 'dynamic investors', 360 is focused on technology driven projects and what it calls potential ‘killer innovations’ – referring to new types of technologies that could render existing products or systems obsolete.

360’s approach targets different types of companies.

The bulk of its investments - about 85 percent - are in innovative early-stage companies but it also allocates around 10 percent of its capital to high-growth, small cap’ public companies. 

On Wednesday Telit revealed that 360 Capital bought 1.5 million shares as it increased its stake from 2.1 to 3.6 million shares – crossing the 3 percent threshold that requires a regulatory announcement.

The French investment company now owns a 3.55 percent stake in the company. 

According to 360 Capital it invests between €2 and €8 million in small cap companies that have ‘significant potential of growth and penetration of huge emerging markets’.

At current prices - 97 pence a share - 360 Capital’s shares are worth about €4 million, or £3.5 million.

Telit is a world leader in machine-to-machine (M2M) communication, which very simply allows machines to talk to each other via a wireless network.

It is the only pure play M2M company listed in London and it is one of the market’s big three players.

M2M communications has multiple applications. The technology will allow new electricity and gas meters installed in a house to remotely send data back to a utility provider and cars to send information to insurance firms or to the nearest search and rescue team. 

In fact, technology exists today to allow your car to talk to your mobile phone, or your fridge to your stove.

And as smaller and cheaper computers are designed to process more data while consuming less power, so the M2M market will continue to expand and the number of applications that will be completed remotely will increase exponentially.

According analysts forecasts the market could be worth $1.5 billion by 2014.

The company is a world leader in machine-to-machine (M2M) communication, which very simply allows machines to talk to each other via a wireless network. Telit is the only pure play M2M company listed in London and one of the market’s big three players.

“In an increasingly connected world, demand for machine-to-machine communication is set to grow rapidly,” said analyst James Goodman setting out his investment thesis. 

“We estimate that at the moment there are around 150m connected devices out of a total potential of 50bn.”

M2M communications has multiple applications. The technology will allow new electricity and gas meters installed in a house to remotely send data back to a utility provider and cars to send information to insurance firms or to the nearest search and rescue team. 

In fact, technology exists today to allow your car to talk to your mobile phone, or your fridge to your stove.

And as smaller and cheaper computers are designed to process more data while consuming less power, so the M2M market will continue to expand and the number of applications that will be completed remotely will increase exponentially.

According analysts forecasts the market could be worth $1.5 billion by 2014. Telit’s rivals include Motorola, Gemalto and Sierra Wireless.

Given the encouraging market fundamentals, Investec’s Goodman is forecasting Telit’s earnings per share will grow at a compound rate of 50 per cent over the next three years.

“We have not built any share gains into our model and grow Telit in line with the market, while we forecast Motorola to grow below trend,” he said in a note to clients.

“We view this as an ultra-conservative growth estimate which should provide upside. Given the high fixed-cost nature of the business, this growth will drop straight through to the operating line.” 

Northland Capital commented on the results in its ‘Morning Report’, saying Telit’s strong performance comfortably beat the broker’s top and bottom line forecasts translating into a lower year-end net debt.

It is maintaining its ‘outperform’ rating on the stock and a 125 pence price target.

“Management believes it continues to win a larger percentage of available designs than its revenue market share and hence should continue to grow faster than the market. Motorola has brought some technology, an installed base of customers and removed a competitive threat,” Northland added.

The company manufactures specialist components that enable machine-to-machine (M2M) communication, and its position in the marketplace was recently bolstered by its acquisition of Motorola’s M2M division. It already manufactures the world’s smallest GSM/GPRS module.

Importantly the new module can be used on any network worldwide without the need for regional variants, Telit Wireless said. 

It also highlighted that because of its small size the module is especially suitable for compact devices like e-readers or PDAs, with data-rich applications like multimedia.

“Depending on the application, even minimal advantages in size can make a huge difference in terms of usability and cost. Being able to build ultra compact modules underlines Telit’s being at the forefront of technology and design know-how,” Telit said.

The company said it is well-suited for devices with high throughput applications like mobile computing, in-car telematics, PDAs, e-readers, tablet PCs, and consumer electronics.

It is also buying inventories, relating to the newly-acquired product line, for $3.0 million over the coming months.

A large proportion of the deal has been funded by a £19 million placing - issuing 23.7 million shares - that was completed recently.

There has been considerable consolidation in the m2m sector of late and Telit had previously hinted that it was on the lookout for value-enhancing acquisitions. 

The AIM-listed technology group - which designs and manufactures M2M modules that allow devices to talk to each other in an ‘internet-of-things’ - expects the deal to be earnings-enhancing in the first full financial year.

Telit reckons the newly combined businesses would have had consolidated pro forma revenues of about US$180 million in 2010.  

Based on independent market forecasts, it is estimated that the combined business therefore would have had pro forma market share in excess of 20 percent for the year ended 31 December 2010.

When it first announced the deal Telit also highlighted that it would boost the company’s expansion into the growing market, it will open up opportunities for cross-selling of products as well as enhanced research and development capabilities and a broadening of Telit's m2m product offering.