CEO Statement, March 2014
We’re delighted with our 2013 results beating market expectations. On March 17, 2014, we announced preliminary results for the year ended December 31, 2013, with full year revenues of $243.2 million, an increase of 17.3% over revenues for 2012 – our fourth consecutive year of double digit growth. Even more rewarding, that figure includes for the first time, $9.8 million recurring revenues from m2mAIR, Telit’s Platform as a Service (PaaS), value added, connectivity, cloud platform and other services, representing triple digit growth from 2012's $1.6 million. The market has responded and our share price increased more than 200% over the course of 2013 and early 2014.
We’re gaining momentum as we launch into 2014 with new acquisitions, a renewed corporate structure and a host of new offerings designed to make the Internet of Things plug-and-play by becoming the industry’s first and only One Stop. One Shop. for m2m.
During 2013, the Company has invested approximately $11 million of its cash in acquisitions. Our September acquisition of ILS Technology provides Telit with access to additional value added services and customers, further expanding our footprint across the m2m value chain and expanding the comprehensiveness of our customer solutions.
ILS Technology, now a Telit company, is a leading provider of ready-to-use, off-the-shelf cloud platform services connecting enterprise IT systems to m2m-enabled devices as well as machines for businesses-critical use. The acquisition was a critical step we took to continue building up our ability to offer unmatched end-to-end solutions to m2m adopters, and we now are integrating elements of the ILS Technology offering into our m2mAIR business Unit under the product name m2mAIR Cloud as we integrate the platform offering tightly into the rest of the m2mAIR portfolio as well as deep into the modules themselves. We expect to have essential deviceWISE Open APIs embedded into more than 100 million modules in the coming years.
In December, we signed an agreement to acquire NXP’s ATOP (Automotive Telematics On-board unit Platform) business. ATOP will provide Telit with additional expertise in automotive platforms, which are becoming increasingly dependent on advanced software engineering, as well as a significant customer base which has already designed systems with ATOP. The multi-service capable ATOP platform provides support for a range of features from its single package, including vehicle location & tracking, remote starting and diagnostics as well as business applications like fleet management. This acquisition carries with it a high level of competence in system security, necessary for protecting not only vehicles but also the increasingly important elements of driver privacy under such applications. We plan to close this acquisition during the first quarter of this year. The team from ATOP will join Telit automotive experts to form a new business unit: Telit Automotive Solutions, headed by longtime Telit leader Dominik Hierl.
On the networking hardware side, we have not only expanded the portfolio of wireless technology products in all generations of cellular in service today, but also in the most popular short range protocols like ZigBee and Wireless M-Bus. And since we understand that these are the network adapters for these new connected assets, we have ensured our IP and Short range network stacks are fully capable of two-way, one-to-one communication throughout the portfolio. In fact, we have endeavored to keep as much of the intellectual property on this critical component of connectivity in-house for total flexibility and to keep pace with needs and trends as new adopters enter the space with different requirements and constraints.
We have introduced a host of new hardware products including the world’s smallest GSM/GPRS module and, more recently, the world’s smallest GNSS positioning module. Now, in order to better serve the geolocation needs of our customers, we have just established a new GNSS Business Unit, Telit GNSS Solutions, to be led by Taneli Tuurnala, a geolocation industry veteran with a track record of driving explosive growth.
As you can see, we are redefining the way to package and deliver m2m in the form of products and services by eliminating the need for the adopter to work with dozens of different vendors. The ONE STOP. ONE SHOP. delivery model arranges all ingredients into manageable solutions -- making the Internet of Things plug-and-play.
Chief Executive Officer