Shares in Telit Communications (TCM) fell by a fifth after the machine-to-machine (M2M) connectivity specialist slashed both full-year sales and cash profit guidance by about 5 per cent at the low end, to $330m (£215m) and $40m, respectively.
Telit chief Oozi Cats attributed the downgrades to customers postponing production in order to include new wireless technology in upcoming products, and delays in "a few customers' projects". More positively, Telit's sales rose 15 per cent in the nine months to end-September. And management recently cancelled most of the group's share premium account, which it expects to produce about $73m in cash to fund future dividends.
Broker Canaccord Genuity previously expected $365m in sales and $47.4m in adjusted cash profits in 2015. It forecast EPS of 25¢ in 2015, rising to 38¢ in 2016 (from 18¢ in 2014).
