Teliti International Ltd Update on datacentre and trading (1517U)

TIDMTEL

RNS Number : 1517U

Teliti International Ltd

21 December 2012

21 December 2012

Teliti International Ltd

("Teliti" or the "Company")

Update on Datacentre and Trading

Teliti International Ltd (AIM: TEL), the datacentre and IT business, provides an update on trading and on the construction of its new, state-of-the-art datacentre ("the Datacentre").

Teliti Datacentres

On 3 October 2012, the Company announced that it expected the Datacentre to be handed over from the contractors by mid-December 2012, at which point Teliti would begin installation of IT hardware and commissioning ahead of the Datacentre becoming fully operational in Q2 2013.

The Company now anticipates that the handover will not be fully complete until the end of calendar Q1 2013. The delays in construction were primarily caused by delays in the release of funding from the Company's financing facility, as previously announced, with a knock-on effect from the recent heavier than expected rains in Malaysia. The Company has also upgraded the specification of the Datacentre to accommodate current technological advancements and utilise the most up-to-date hardware. However, this has led to further delays, with some of the equipment not capable of being delivered until calendar Q2 2013, with the consequence that installation and commissioning of all of the IT equipment is now expected to finish in calendar Q3. The Datacentre is therefore expected to become fully operational and commence generating revenue in calendar Q4. As a result, Teliti does not expect to record any revenues for Teliti Datacentres during financial year 2013.

Under the commissioning plan, the Datacentre will be brought on-line in phases. As announced earlier this year, the first phase will now include a room dedicated to the provision of cloud computing services, which attract a higher margin than the basic co-location services. The Company is also upgrading two rooms in the Datacentre to be certified as Tier 4 capable. These services provide a higher level of security and protection and, as such, also carry a higher margin. Once completed, the Datacentre will be one of the largest of its kind in Malaysia with Tier 3 datacentre classification.

Update on trading for Teliti Solutions and Services

The Company is pleased to confirm that the majority of the contracted revenue that had been deferred to the current financial year, as stated in the announcement on 3 October 2012, has been invoiced during the first quarter. However, the market is still being negatively affected by the uncertainty ahead of the Malaysian government elections, which must be held by 31 March 2013. As a consequence, there have been on-going delays in billing on major government projects with the result that revenue in the first quarter of financial year 2013 for Teliti Solutions and Teliti Services has fallen short of management expectations. However, these billings are expected to be invoiced in the current financial year, and the Company remains positive on the outcome for Teliti Services and Teliti Solutions for the year as a whole.

Further information on current trading will be provided in the Company's full year 2012 results, which are scheduled to be announced in February 2013.

Enquiries

 
 Teliti International Ltd 
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 Hj Mohamed Nasir Abdul Majid, Chief 
  Executive Officer 
  Rosmida Din, Chief Financial Officer    [phone] 
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 Daniel Stewart and Company plc 
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 Antony Legge, James Felix                [phone] 
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 Luther Pendragon 
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 Harry Chathli, Claire Norbury            [phone] 
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This information is provided by RNS

The company news service from the London Stock Exchange

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