Telit Communications PLC Year end trading update (0990M)
January 19 2021 - 2:00AM
UK Regulatory
TIDMTCM
RNS Number : 0990M
Telit Communications PLC
19 January 2021
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Telit Communications PLC
Year end trading update
London, 19 January 2021- Telit Communications PLC ("Telit", "the
Group", AIM: TCM), a global enabler of the Internet of Things
(IoT), has published a trading update for the year end at 31
December 2020.
The Group is pleased to report that revenues are expected to be
$343.0 million (2019: $382.8 million excluding automotive), a
decline of 10.4 % , which shows considerable resilience in the face
of the significant impact Covid-19 has had on the Group's global
markets. It has been very encouraging that IoT cloud and
connectivity revenues have continued to grow and are expected to be
up by 6.1 % to $43.5 million (2019: $41 million), driven by the
continued strong performance of both the connectivity and platforms
businesses, supporting the Group's primary strategic focus on
industrial IoT services.
As previously notified, the Group has taken decisive and timely
mitigating measures to limit the impact of the pandemic on the
Group's adjusted EBITDA, which is expected to be in the range of
$38-$41 million (2019: $38.2 million including two months EBITDA
contribution from automotive business).
Group profit in cash is expected to be in line with the Board's
expectations.
As at 31 December 2020, the Group's net cash position is
expected to be $63 million (31 December 2019: net cash $48
million).
Paolo Dal Pino, Chief Executive Officer Telit, commented:
"Telit has been able to successfully improve operational
results, profitability and cash generation in the face of the
ongoing impact of the COVID-19 pandemic thanks to our refocused
strategy and operational transformation in recent years, as well as
the swift actions taken by the Group early in 2020.
This resilience has allowed us to fully maintain our strategic
and operational plans despite a market slowdown in customer demand,
and to continue to offer leading 4G products and an expanded 5G
offering, which received additional certifications and design wins
in 2020, to customers looking for long-term IoT solutions.
"We have the right strategy in place and expect to further
expand our innovative offering fully focused on industrial IoT.
Telit is well-positioned to harness future opportunities in a world
that will become even more connected.
We have noted the announcement from u-blox yesterday that it
does not intend to continue with its offer for the company. We have
a sound strategy and strong fundamentals. The Board remains
confident in Telit's prospects as an independent company and
believes it remains significantly undervalued when compared to
similar companies. We do not believe this discount can be justified
and will continue to work on initiatives that will help to
eliminate it and deliver the increases in shareholder value that
our underlying performance justifies."
The Group expects to publish its full year results in April
2021.
Other items: Koninklijke Philips N.V. ("Philips"), the owner of
purportedly standard essential patents covering technology
allegedly used by the Group in certain of its products, has issued
proceedings in both the US International Trade Commission and
Delaware courts. Telit understands that similar proceedings have
been issued against several other leading industry participants.
Telit is reviewing these claims with its external advisors and will
respond in due course.
Enquiries:
Telit Communications PLC Tel: +44 203 289
Paolo Dal Pino, Chief Executive Officer 3831
Eyal Shefer, Chief Financial Officer
finnCap (Nomad and Broker) Tel: +44 20 7220
Henrik Persson/Giles Rolls (corporate finance) 0500
Tim Redfern / Richard Chambers (ECM)
FinElk Tel: +44 20 7631
8618
Robin Haddrill/ Cornelia Schnepf Email: telit@finelk.eu
About Telit
Telit (AIM: TCM), is a global leader in Internet of Things (IoT)
enablement. The company offers the industry's broadest portfolio of
integrated products and services for end-to-end IoT deployments -
including cellular communication modules in all technologies, GNSS,
Wi-Fi, short-to-long range wireless modules, IoT connectivity plans
and IoT platform services. Through the IoT Portal, Telit makes IoT
onboarding easy, reduces risk, time to market, complexity and costs
for asset tracking, remote monitoring and control, telematics,
industrial automation and others, across many industries and
vertical markets worldwide.
# # #
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Communications PLC in the United States and other countries. Other
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