Telit revenues climb as it shifts attention to Internet of Things

Internet of Things-focussed technology company Telit Communications published its results for the year to 31 December 2016 on Monday, with revenues up 11.0% to $370.3m.

The AIM-traded firm said IoT services revenues were up 36.5% to $35.1m as the group increasingly focuses on those services.

Gross profit increased by 13.2% to $150.6m, and the company’s gross margin improved to 40.66% from 39.9%.

Adjusted EBITDA was up 19.9% to $54.4m, and adjusted EBIT increased 11.8% to $34.2m.

Profit before tax was 20.3% firmer to $19.1m.

Telit’s adjusted earnings per share were up 21.7% to 26.4 cents, and basic earnings per share were up 17.1% to 14.4 cents.

Net cash flow generated from operating activities was 15.6% higher at $47.6m.

The board declared a total dividend for the year of 7.4 cents per share, up 23.3%.

Net debt stood at $17.7m at year-end after $15.4m for acquisitions and $9.8m for dividends, compared to $29.1m at the interim and $1.1m net cash at the start of the year.

“Our strong competitive positioning and global reach has enabled us to continue to achieve double-digit growth in revenue and profits with our IoT services unit reporting a significant jump in revenue, up 36.5%,” commented group chief executive Oozi Cats.

“This reflects our continued investment in this unit and the increasing take up, across a range of industries, of our comprehensive IoT capabilities.”

Cats said the company had now established a “very strong” position in the communication products market, particularly after its recent purchase of the Gainspan Wi-Fi business.

“We have a full scope of communications technologies in order to provide the comprehensive end to end IoT solutions that our multinational customers require.

“The IoT market is rapidly gaining momentum across an increasing number of industrial enterprises - large and small - around the world.

“With our wide range partners and our unique end to end IoT solution capabilities, we are very well positioned to address the numerous opportunities.”