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Telit reports strong first-half performance

After a torrid time of it in 2017, the Internet of Things specialist saw strong revenue growth in the first half of 2018
The Internet of Things
Telit claims to offer the industry's broadest portfolio of integrated products and services for end-to-end IoT deployment

Internet of Things (IoT) specialist Telit Communications Plc (LON:TCM) said gross profit margins have stabilised in 2018 following the declines seen last year.

Group revenue in the first half of 2018 is expected to be in the order of US$201mln, up 13.2% on the US$177.6mln earned in the first half of last year. Telit's connectivity and IoT platforms services chipped in with revenue of US$16.5mln, up 16.2% from US$14.2mln in the corresponding period of last year.

READ Telit off to strong start in 2018; revises banking covenants​

At the end of June, the group’s net debt had narrowed to US$25mln from US$30.2mln at the end of 2017.

"We look forward to reporting a strong performance in the first half of the financial year, in line with our expectations. Revenue growth was driven by the increase in delivering of LTE products, mainly in the North American market, ramp up of new designs and strong demand for our connectivity capabilities,” said Yosi Fait, the chief executive of Telit.

"Our cost optimisation plan, initiated during the last quarter of 2017, is on track and we are already seeing some of the operational and financial benefits.

"Our gross margins have now stabilised and together with the revenue growth and costs rationalisation, we are making headway towards a return to being a sustainably cash generative business," he added.

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