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M2M developer Telit has reported preliminary results for 2016, saying it expects revenues up 11 percent from the year before to USD 370 million, with IoT services jumping 35 percent to USD 35 million. Revenues for the second half rose 15 percent to USD 240 million. The gross margin for IoT services is seen at over 60 percent. Adjusted EBITDA and earnings per share are forecast in line with the guidance of USD 54-59 million and 26-30 cents, respectively.
For the Americas, revenues for the full year will lift 15 percent to USD 149 million, with H2 revenues up 26 percent from the year earlier. APAC revenues will also be strong, advancing 18 percent to USD 84 million for the FY and up 27 percent for H2. EMEA revenue is still seen modest, going to USD 137 million for the FY from 133.2 million.
CEO Oozi Cats said organic growth in the year was driven by both IoT modules in the Products business line and IoT Services. The accelerated growth in H2 was backed by advanced LTE products in the US (mainly LTE Cat-1) while the company’s end-to-end IoT solutions continues to see strong demand. Cats said the company will this year launch next generation LTE Cat-M and NB-IoT products.
The CEO said Telit will continue to look for acquisitions to broaden its product lines and IoT services capabilities. The company will report full year results on 13 March.
