Telit Communications PLC Trading update (5513O)
08 November 2016 - 6:00PM
UK Regulatory
TIDMTCM
RNS Number : 5513O
Telit Communications PLC
08 November 2016
Telit Communications PLC
Trading update
London, 8 November 2016. Telit Communications PLC ("Telit, "the
Group", AIM: TCM), a global enabler of the Internet of Things
(IoT), has published a trading update and has refined its
previously stated guidance for the year ended 31 December 2016.
The Group has increased its adjusted EBITDA and earnings per
share guidance towards the middle and upper end of the previous
range, as a result of better gross margin and operational cost
discipline. The Group has also narrowed the revenue guidance
range.
Year to Dec 2016 Guidance Updated guidance
------------------ ------------------ ------------------
Revenues $370-$390 million $370-$375 million
------------------ ------------------ ------------------
Adjusted EBITDA $52-$60 million $54-$59 million
------------------ ------------------ ------------------
Earnings per 24-30 cents 26-30 cents
share
------------------ ------------------ ------------------
Americas. As expected, revenue growth in this region will be in
excess of 20% in H2. For the year as a whole, the Group expects the
revenue growth rate to be in the order of 15%. The new LTE Cat-1
modules, that were certified earlier this year, have started to be
shipped and deployed across customers and verticals, re-initiating
the strong growth in the region.
EMEA. As expected, revenue growth has continued to be modest in
the region, mainly due to the softness of the European markets and
the very slow technological shift in the region from 2G to 3G and
4G. The Group expects this region will deliver improved growth in
2017.
APAC. The region continues to show strong double-digit growth in
revenues. The Group believes the long term outlook for this region
to be positive.
IoT Services. Telit has continued to see strong momentum and
growth in customer acquisition, end-to-end solutions design wins
and factory solutions wins. The key agreements with SAP and Tech
Mahindra have started generating material accounts and will
accelerate the Group's rate of revenue growth.
New banking facilities. Telit agreed new $110m committed banking
facilities with HSBC Bank plc and Bank Hapoalim B.M. in October
2016. These facilities, together with the Group's existing
facilities, leave Telit well placed to continue to invest in both
organic and inorganic growth opportunities.
Oozi Cats, Group Chief Executive, commented:
"Our guidance for adjusted EBITDA and EPS reflects our
anticipated double digit growth for the full year.
"Americas return to double digit growth, together with the
growth in APAC and EMEA and the continued strong momentum in our
IoT Services business, leaves us well placed to finish the current
year strongly."
Enquiries:
Telit Communications PLC Tel: +39 06
Oozi Cats, CEO 4204601
Yosi Fait, Finance Director & President
Canaccord Genuity Limited (Nominated Tel: +44 20
Adviser and Joint Broker) 7523 8000
Simon Bridges/Cameron Duncan
Berenberg (Joint Broker) Tel: +44 20
Chris Bowman/Ben Wright 3465 2722
Instinctif Partners Tel: +44 20
7457 2020
Adrian Duffield/Chantal Woolcock
This information is provided by RNS
The company news service from the London Stock Exchange
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