Telit Communications Plc’s (LON: TCM) prelims revealed the company has cemented its position as “global enabler” of the internet of things (IoT), where machines and devices are able to communicate with each other.
The highlight of the results for the year ended December 31 was the 36.5% growth in IoT services revenues to US$35.1mln.
“This reflects our continued investment in this unit and the increasing take up, across a range of industries of our comprehensive IoT capabilities,” said chief executive Oozi Cats.
He said the company now has a very strong position in the communication products market, particularly after the recent purchase of the Gainspan Wi-Fi business for US$8mln in cash.
Overall, Telit’s revenues were up 11% to US$370.3mln as the Americas returned to strong growth in the second half.
This gave adjusted underlying earnings (EBIDTA) of US$54.4mln (up 20%) and pre-tax profit of US$19.1mln (also up 20%).
It generated almost US$48mln of cash, and is sitting with US$17.7mln of debt – although this was after paying US$15.4mln for acquisitions and US$9.8mln in dividends.
The total pay-out will be 7.4 cents a share – a rise of more than 23%.
Telit said the outlook for burgeoning field of machine-to-machine technology “continues to be very encouraging”.
“[Our] acquisitions over the past few years have materially enhanced its cloud platform capabilities, which is a key factor in delivering one of its strategies to increase recurring revenues from the IoT Services business unit,” the company said.
It added it will continue to make “selective acquisitions” to enhance its products and services capabilities.
“With the group's market leading position in modules, its wide range of industry partners and its comprehensive range of IoT services and connectivity technologies, Telit is well positioned to exploit the numerous opportunities developing around the world in growing markets,” Telit added.