Telit Communications PLC ("Telit", "the Group", AIM: TCM), a global enabler of the Internet of Things (IoT), has published its results for the six months ended 30 June 2019.
· Revenue, excluding automotive business sold in February 2019, up by 7.6% to $180.3 million (H1 2018: $167.5 million)
o Total Group revenue, including two months contribution from the automotive business, $190.7 million (H1 2018: $201.7 million, including six months of automotive business)
· IoT Cloud and connectivity revenues up 13.3% to $18.7 million (H1 2018: $16.5 million)
· Adjusted EBITDA, excluding automotive business, up by 57.4% to $15.9 million (H1 2018: $10.1 million)
o Total Group adjusted EBITDA, including two months contribution from the automotive business, up by 28.0% to $16.0 million (H1 2018: $12.5 million, including six months of the automotive business).
· $70.9 million improvement in profit before tax to $58.1 million (H1 2018: loss $12.8 million), including $57.2 million gain from sale of automotive business
· $8.3 million improvement in profit in cash to $2.6 million (H1 2018: loss $5.7 million), driven by cash OPEX saving following restructuring plan implementation
· $78.7 million improvement in net cash position to $44.7 million at 30 June 2019 (31 December 2018: net debt $34.0 million)
· Restructuring and cost rationalisation programme completed with further reduction in cash operating expenses - optimised organisation with five R&D centres
· Increased focus on high category LTE and 5G products - clear development plan to address growing demand for high bandwidth products
· Further investment in OneEdge, our integrated hardware and services offering designed to enable enterprises to manage integration and scalability
· Continued supply chain optimisation to stabilise gross margin - focus on material and manufacturing costs; plan for new production facility to counter US-China trade issues
· Received certifications for NB-IoT and LTE-M modules from leading mobile operators
Paolo Dal Pino, Chief Executive Officer, said:
"Since I joined Telit, our key focus has been on the completion of the automotive sale, the reorganisation of our management team and the refocus of our company's portfolio towards more innovative industrial IoT products and services, all of which has helped improve our financial performance.
"Thanks to these efforts, we have seen significant improvement in our cash generation, driven by solid revenue growth and our cost optimisation plan is fully on track to meet our targets."
"We are encouraged by our performance in H1 and remain confident that full-year results will be in line with the Board's expectations"