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Internet of things investor Telit Communications posted an 87% slump in annual profit, as the pandemic hit customer demand and it cycled a gain on the sale of its automotive unit in the previous year.
Pre-tax profit for the year through December dropped to $7.9 million, down from $59.9 million year-on-year, as revenue slid 13% to $343.6 million.
Adjusted pre-tax profit fell more modestly, to $12.5 million, down from $13.2 million, while adjusted operating profit rose to $17.8 million, up from $16.9 million, amid higher cloud and connectivity revenues.
Telit did not declare any dividends for the year.
'Telit has once again successfully improved operational results, profitability and cash generation thanks to its refocused strategy, as well as the targeted programme of efficiencies taken early in 2020 in response to COVID-19,' chief executive Paolo Dal Pino said.
'The significant improvement in our overall gross margin, supported by growing IoT cloud and connectivity services revenues is particularly encouraging.'
'We are clearly mindful of short-term risks that might affect us as result of the ongoing impact of Covi-19, but we are confident that the acceleration and adaptation of IoT solutions triggered by the pandemic will create medium-term benefits for the IoT market and we expect a ramp up of customer demand in 2021.'
At 9:08am: (LON:TCM) Telit Communications PLC share price was 0p at 167.2p