Machine to machines specialist () shrugged of a flat eurozone market and component shortages elsewhere to lift interim profits by 20%.
Oozi Cats, chief executive, said the first half performance reflected its recent acquisitions in the automotive and internet of things arenas starting to pull their weight.
The company, which flagged the results a couple of weeks ago, said revenues in the half year to June rose by 13% to US$156.3mln, underlying profits by 28% to US$21.8mln and pre-tax profits by 20% to US$8.8mln.
Margins also improved, Cats said, as the contribution from the services side of the business increased.
“Our strategic acquisitions in the area of IoT connectivity and Application Enablement Platform (AEP) in recent years have added a layer of recurring revenues to Telit’s traditional business and we expect them to continue increasing their contribution over the coming years.”
Telit added that revenues in the Americas region were affected by a components shortage due to strong demand by the smartphone industry, resulting in several component supply constraints, bit it expects full year revenue for this region to reflect substantial growth compared to 2014.
The challenging conditions in the Eurozone economy continued into 2015, with the m2m/IoT market remaining flat with virtually no growth, but it expects to benefit when the Eurozone economy starts tp pick up again.
Telit had already forecast full year revenues would be between $347-$354mln and underlying earnings [Adjusted EBITDA] $42-$47mln and it re-affirmed those numbers today.