Telit Communications expects to report continuing year-on-year revenue growth in the financial year to end of December and adjusted EBITDA to be in line with previous guidance.
The wireless technology specialist reveals that revenue for the nine months to end of September was $255mn (2016: $238m).
Telit has commenced a review of its activities, cost base and product portfolio in order to deliver a significant rationalisation of the group's activities and reduction in its costs.
Low-cost R&D centres
Telit intends to reduce the number of its R&D centres and that any future growth in R&D spend will be focused in low-cost centres. The group is also reducing its sales and general administrative cost base.
Telit expects these measures will reduce its cash operating expenses in the coming financial year by more than $10m and help the group mitigate pressure on gross profit margins.
The group expects to incur exceptional charges of approximately $25m in total during the current financial year.
This comprises $16m of non-cash write downs of capitalised development costs and inventories that relate to discontinued products and activities, and $9m of cash expenses incurred in restructuring actions and addressing the challenges that the group faced during the year.
Commenting on the latest figures, Yosi Fait, Chief Executive, said: "Our new organisational structure is designed to support our future development by combining the two main activities, hardware and services, under one product management team and a unified sales capability.
"In 2018, we expect double digit revenue growth, fueled by the important 2017 US certifications, which together with our reduced cost base will lead to a significant improvement in free cash flow generation."