The company, on the comeback trail after a turbulent 18 months or so, said it expects to report revenue for 2018 of around US$427mln, up from US$374.5mln the year before.
READ Telit confirms acquisition of its automotive division is expected to complete by 31 January 2019
The revenue growth of 14% was driven by a 21% increase in Cloud and connectivity revenues to US$33.5mln from US$27.7mln in 2017.
The group said underlying earnings, or EBITDA, are expected to be in line with previous guidance, falling somewhere in the range of US$30mln to US$35mln (2017:US$18.1mln).
Net debt at the end of 2018 was around US$34.5mln, compared to net debt a year earlier of US$30.2mln.
Join us January 17 for the Enabling Technologies for Smart Internet of Things webinar and learn about #IoTEdge technology and connectivity options with @GSMA. Register here: https://t.co/btny8qBWQg #smartIoT pic.twitter.com/5lykCC2R15— Telit (@telit) January 14, 2019
"Over the last few months, we have significantly strengthened the Group's infrastructure and delivered double-digit revenue growth and improved profitability for the year just finished,” said Paolo Dal Pino, the executive chairman of Telit.
"We are seeing promise of growth across markets and expect to improve further our financial performance in 2019; based on continued revenue growth, gross margin control and, where possible, improving upon the $10 million of additional cost savings previously announced."
In a note to clients, analysts at broker finnCap pointed out: “Although H2 delivered profit in cash, the company finished the year with net debt rising from $30.2mln to $34.5mln.”
They added: “This debt should be expunged by the sale of the Automotive business to TUS International in H1. The buyer is currently raising money through a placing to complete the purchase at the end of this month. Once this is confirmed, the business should be strongly positioned for recovery.”
finnCap has a 200p target price on Telit shares, with the stock currently trading at 128.70p, down 2.2% on Monday’s close.
-- Adds analyst comment, share price --