Telit Communications Share Discussion Threads

[owenski] 11/12/2018 08:42

As said, decent business.

[timmy11] 11/12/2018 07:41

"We are now a much leaner and more efficient organisation with a refocussed go-to-market strategy for our IoT services business. I am confident this will see both an upturn in revenue next year and a material increase in our cash generation."

[timmy11] 11/12/2018 07:40

Sean Shen, Chief Executive TUS international, commented:



"We have been working very closely with the Telit team over the last few months to ensure a smooth transfer of business for both employees and customers and look forward to a speedy closing of the transaction."

[timmy11] 11/12/2018 07:39

The reorganization of Telit is progressing well and is expected to be substantively complete by year end.

[beergut] 11/12/2018 07:26

All looks quite promising

[timmy11] 11/12/2018 07:23

The Group now expects TUS to publish its shareholder circular before 31 December 2018 and to complete the transaction by 31 January 2019. Procedural amendments have been made to the agreement between the parties to reflect the amended dates.

[timmy11] 11/12/2018 07:23

2018 trading update



The Group has continued to trade well during the year to date with double digit revenue growth and stabilised gross profit margins. The Group now expects the full year revenue to be $415-$425 million and adjusted EBITDA is expected to be $30-$35 million. Most importantly, Telit remains on course to deliver a positive 'profit in cash' in the second half of 2018 and going into the new financial year.



2019 outlook



Following the appointment of Paolo Dal Pino as Executive Chairman on 21 September 2018, the management team accelerated the Group's restructuring, streamlining the business and focusing on IoT modules (mainly 4G) and its IoT Platforms and Connectivity operations, which can be bundled with its IoT Modules.



The Group has now identified a further $10 million of future cost savings. Together with an anticipated increase in revenue and stabilised gross margins, Telit looks forward to significantly improved profitability and cash generation in 2019.

[savagedstock] 10/12/2018 23:10

I don't disagree....it's like many stocks on here. ...watching a car crash in so motion

[rhambo] 10/12/2018 22:52

If (When?) this doesn't go through, telit is a zero.

[savagedstock] 10/12/2018 21:27

Assuming that the incoming management were aware of the issues before they took over then there's a good chance they would have budgeted this deal not closing....it's pretty obvious when you look at the buyers statement the day the deal was announced....
So one view us that they have been trying to reschedule the debt with the banks and get more waivers whilst squeezing whatever cash they can out of the business....plus working in a new fund raise. ...
My guess is that there is probably not much appetite to throw more money at it so it will end up as an asset firesale sometime after the auto buyer finally fesses up and says can't afford it or don't want it....
Either way the market will not grow fast enough to get the company out if it's cash flow mess....

[sweet karolina] 10/12/2018 18:30

It's the company that said it would buy the auto division, if it could raise the money needed. The deal could very easily fall through and the banks could very easily pull the plug on Telit. I reckon chances of that happening must be 50/50 now.

[savagedstock] 10/12/2018 17:17

it's the company buying the automotive division

[savagedstock] 07/12/2018 22:34

will go down to the wire, with a possible extension

hxxp://www.files.services/files/4/2018/1031/20181031174501_54799008_en.pdf

[rhambo] 07/12/2018 00:02

@wiseacre it suggests to me the market is none the wiser. Market should be a lot more worried, TUS has made a cash offer for more than its mcap. Looks shaky to me, but then again this is China....

[wiseacre] 06/12/2018 16:05

Share price resilience suggests next week's deadline for sale of auto division will be met. Should be worth selling on the bounce should it materialise.

[owenski] 06/12/2018 15:54

Well, the reseller of complex stuff through branches of Asian Halfords is holding up well today, fancy that.

[rogthepodge] 05/12/2018 01:46

and another one, 'Henchard'

[dangersimpson2] 05/12/2018 01:05

The problem is this has the rating of stock market darling but had to make the following statements in its latest results announcement:

Costs related mainly to legal and advisory costs in association with the 2017 crisis management, FCA investigation and the BAMES litigation....

...Net finance cost increased by $1.1 million mainly reflecting higher interest costs and bank fees, driven from the increase in credit facility utilisation and interest rates and exchange rates differences...

...As previously announced in 2017, Telit obtained several waivers from one of its banks and in March 2018, agreed to amend the financial covenants with that bank.

Then its CEO, who was the former CFO during the '2017 Crisis Management', was kicked out.

Banks only seem supportive because they have been promised all of the $105m they are getting for the Automotive Division.

Following completion of the transaction, cash proceeds will be used to reduce the Group's debt (net debt at 30 June 2018: $25 million) and strengthen the Group's cash position.

If this doesn't complete then I can't see the banks being as accommodating.

It might turn out well but paying a high price today for the hope that they will finally get their act together and build a business that is capable of generating a cash return would seem somewhat foolhardy to me.

[rogthepodge] 05/12/2018 00:32

they are all here!

maybe fewer than they appear to be, though

lots of phoney aliases