Source - SMW
Telit Communications said it expected to incur exceptional charges of around $25m during the current financial year and was in talks with its lender over potential breaches of its debt covenants.

The charges comprise $16m of non-cash write downs relating to discontinued products and activities, and $9m of cash expenses incurred in restructuring actions.

"The group is in advanced discussions with [its} bank to agree an advance waiver of potential breaches of its covenants as at 31 December 2017," it said.

"The group and the bank are also in discussions with regard to amending its covenants to be appropriate for the group going into the future."

Telit said it intends to close R&D centres and reduce its sales and administrative cost base, reducing its cash operating expenses in the coming financial year by more than $10m, some 7% less than the current financial year.

The company said revenue in the nine months through September rose to $255m, from $238 million a year earlier. It expects annual adjusted Ebitda to be in line with previous guidance.


At 8:33am: (LON:TCM) Telit Communications PLC share price was +0.5p at 158.75p