Telit net income almost trebles on soaring M2M demand
March 23, 2014
March 23, 2014
Module maker Telit has reported soaring revenues and profits for the 2013 financial year thanks to strong demand for its expanding range of M2M services.
Net income shot up from $3.88 million in 2012 to $10.87 million in 2013, while revenues increased by 17.3%, to $243 million, over the same period.
Results were boosted by the takeover of cloud specialist ILS Technology (Boca Raton, FL, USA) in September, but also reflected organic growth in each of the EMEA, Americas and Asia-Pacific regions.
For the first time, results also included revenues of $9.8 million generated by m2mAIR, Telit’s (London, UK) managed services unit, which the company sees as a way to offset pricing pressure in the hardware business and play a bigger role in the overall M2M value chain.
Engineering and support staff from ILS Technology are being integrated into the m2mAIR unit.
“We achieved strong growth in sales and profits together with strong growth in services revenues, which reached $9.8 million in 2013,” said Oozi Cats, Telit’s chief executive. “Our strategic acquisitions in 2012 and 2013 have added a layer of recurring revenue to Telit’s financial performance and we expect them to increase their contribution over the coming years.”
Despite tough operating conditions in Europe, Telit managed to grow revenues from $107 million in 2012 to $110.1 million in 2013 – attributing the improvement to its strong position in the region’s telematics sector.
Americas revenues, meanwhile, soared from $75 million to $105.2 million over the same period as Telit gained accounts in the security, metering, telematics and mobile computing verticals.
It also registered growth in the Asia Pacific market, where sales rose from $25.4 million to $27.9 million between 2012 and 2013, due largely to growing demand for 3G modules.
In a statement, Cats said the outlook for 2014 was bright and that he expected a further improvement in Telit’s financial results this year.