Telit net income almost trebles on soaring M2M demand

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.

ArticleTools

Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

 

Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

GEN 15
Nov. 16-19, 2015

Omni Hotel, Dallas, Texas

The global gathering of networking professionals enabling the future of agile, assured and orchestrated services powered by CE 2.0, LSO (Lifecycle Service Orchestration), SDN and NFV.

Visit event website...