Telit shares boosted by impressive preliminary numbers

7th Mar 2016 14:18

(ShareCast News) - Telit Communications revealed a year of impressive growth on Monday, with the market sharing the firm's excitement over its 2015 preliminary results.The AIM-traded technology company, focused on the so-called Internet of Things (IoT), saw revenues rise 13.4% during the calendar year, to $333.5m (£235.8m) from $294m in 2014.Its IoT-specific revenues grew 30% to $26m, Telit's board reported.The firm's gross margin increased to 39.9%, from 39.55% in 2014. It also reported all operational expenses decreasing as a percentage of revenues.Adjusted EBITDA was up 31% to $45.3m, which was 13.6% of revenues, compared with 11.8% in 2014. EBIT increased 23.7% to $18.8m.Telit's adjusted profit before tax increased 18.3% to $27.7m, with adjusted basic earnings per share up 18% to 21.7c."As well as another year of double-digit growth, we have continued to invest in our IoT Services division, consisting of our connectivity and platform capabilities as well as our IoT Portal tool," said Telit Communications group chief executive Oozi Cats."After several years of making acquisitions and high research and development investment, we are now in a position to scale the business and benefit from our operational leverage, and as such, we will continue to reduce R&D, aales and marketing and growth and acquisitions costs as a percentage of revenue," he added.Cats said that, as those cost elements reduced as a percentage of revenue and the company continued to scale, the board also anticipated that Telit would start to generate significant free cash flows.He said the combination of products and services needed to deliver IoT capabilities for global enterprises was now in place."With our global reach and market leading position in modules as well as our connectivity, connectivity management and platform capabilities, we are well positioned to exploit these market developments," Cats explained."We are confident of maintaining our double-digit revenue growth in the current financial year," he concluded.At 1425 GMT, shares in Telit Communications were up 9.52% to 231.5p.