Telit Communications (LON:TCM) said that it expects to report a 36 percent uplift in first half revenues.
The group’s first half results statement, for the six months ended 30 June 2011, is scheduled for 20 September 2011. Overall the board is confident that trading remains in line with expectation for the year as a whole, Telit told investors.
The group expects that revenues will come in at US$81 million for the six months ended 30 June 2011, a 36 percent improvement compared with the US$59.6 million generated in the same period of last year. Net cash is expected to come in at US$2.4 million for the first half.
Telit is a specialist in the field of wireless machine-to-machine communications (M2M). Put simply M2M enables one machine to talk to another machine via a wireless network. Telit is the only pure play M2M company listed in London and one of the market’s big three players.
Crucially Telit completed a deal to acquire Motorola's m2m division, and through the operational integration that’s occurred to date that business unit contributed around 20 percent of group revenues.
Since then the group has continued to blaze the acquisition trial. Yesterday it announced a US$2.9 million deal to buy GlobalConect, a company that provides the wireless connection used in machine-to-machine applications created by companies like Telit.
The newly-acquired company it is expected to become a major “building block” of the enlarged Telit business. Around US$700,000 of the acquisition costs will be met in cash, while 800,000 shares are being issued at 170 pence each.
Telit chief executive Oozi Cats said: "Adding wireless connectivity to our offering is an important factor for Telit's continued growth and success.
“Our customers expect superior m2m solutions from one source and with the acquisition of GlobalConect we will now be in a position to address their needs more comprehensively."
GlobalConect founder Dan Amir will stay on as Telit’s head of connectivity activities.
He added: “I am excited about the move to Telit. We have an opportunity to leverage our activity within Telit's global customer base to contribute significantly to building Telit's service offering."
Earlier this month a study by Beecham Research, a consultant specialising in the M2M market, said Telit's market share of the ‘modules’ market over 2010 rose from 12.4 per cent in 2009 to 16.1 per cent in 2010.
If Telit’s acquisition of Motorola’s M2M unit earlier this year is included in Beecham’s analysis, Telit’s share of the global industrial grade m2m modules market jumps to 22.2% on a pro forma basis.