Sorry havent got much information on this one yet so if you are interested please please do your own research to compliment the information I have been given. Sorry just back from holiday.

I dont think techs are in fashion at the moment but this company could just have the contracts awaiting to be announced that could really put it on the map.

Citywire yesterday gave out this news....

Telit chief executive Oozi Cats told Citywire that the company should have a dramatic announcement with one of the worlds biggest companies in the next couple of weeks for its data product business, and another with one of the biggest mobile operators in Europe for its latest branded 3G phones.

Telit has two distinct divisions, both built on its know-how and expertise in mobile communications. The first supplies non-branded handsets to mobile phone operators and retailers. The second, the data products division, supplies a radio frequency GSM engine that enables machine-to-machine communication over mobile networks. ENDS.

Well its obviously very speculative but might be just worth a punt.

More information when I recieve it.

Please DYOR.

cheers Gf.

PS, its well below its placing price aswell.

Cheers Mickey. Will have a look.

GF.

Found the full article and lifted it from another board, makes for interesting reading.........


Citywire Tip: let's hear it for Telit

Published: 13:40 Monday 19 September 2005 By: Joanne Wallen, Associate Editor

The shine appears to be off small caps at the moment, but Telit has a couple of major announcements in the pipeline and very strong growth expected next year, so its share fall may provide a buying opportunity for the risk-friendly.

Shares (TCM) are off 14p at 90p, valuing the company at 38.9 million. The fall was no doubt encouraged by house broker Seymour Pierce, which has downgraded its expectations for one part of the business while still maintaining that the company is undervalued and its shares are a buy.

Telit announced a strong first half with 23% growth, better prospects still for the second half and potentially explosive growth next year.

Telit chief executive Oozi Cats told Citywire that the company should have a dramatic announcement with one of the worlds biggest companies in the next couple of weeks for its data product business, and another with one of the biggest mobile operators in Europe for its latest branded 3G phones.

Telit has two distinct divisions, both built on its know-how and expertise in mobile communications. The first supplies non-branded handsets to mobile phone operators and retailers. The second, the data products division, supplies a radio frequency GSM engine that enables machine-to-machine communication over mobile networks.

The mobile phone division is currently the cash cow of the business, but it is the data product division that should provide the more exciting growth in the coming 18 months. However it is here that Seymour Pierce has downgraded expectations set out at the time of the company's flotation earlier this year.

This business has had a couple of high profile wins that include signing a memorandum of understanding with the ECs eCall (emergency call) initiative, which is calling for all cars sold in the European Union to be fitted with an eCall black box by 2009 that will automatically call the emergency services in the event of an accident. The other is with Italys Fondazione Ugo Bordoni (FUB), a non profit organisation that is a subsidiary of the Italian Ministry of Communications. This deal is for Telits technology to power a new type of TV remote control aimed at assisting the move from analogue to digital television.

However Cats was keen to point out that while these are very significant deals for the future, the company has a large amount of business here today, and with significant growth commitments in the next six to 18 months.

For the first half to June, group turnover increased 23% to 36.6 million (24.6 million), with gross profits up 40% to 6.6 million. Operating losses and pre-tax losses fell by 45% to 1.2 million and 900,000 respectively.

The branded mobile business grew turnover by 31.5% and operating profits were lifted by more than 118%. The data products business increased sales by 7.3%, with operating losses down by 12%.

Cats expects the company to improve on the 23% growth in the second half, but next year should be dramatically different to this year. House broker Seymour Pierce has profits leaping from 1 million this year to 8 million in 2006, with earnings per share rising from 1.2p to 10p.

In the mobile business, the company has increased the number of suppliers it takes phones from (and then enhances them for the European market), to seven from three. It has also increased the number of different handsets from five to 12. Cats said the company will launch its new 3G phone before the end of this calendar year, which is a simple, low-cost 3G phone. He said the launch will be with a new European customer and will be a very big deal. The company already supplies the likes of Wind in Italy and Hollands KPN as well as a number of Israeli operators and Eplus in Germany.

In the data products business, there are now 500 customer sites designing Telits engine into their products.

Of these, many have already started producing products. Some examples include UK company Dione, which has already taken 20,000 units to go into its point of sale terminals and should take another 25,000 in the coming twelve months. An Italian gaming terminals maker has taken 7,000 units so far and has another 25,000 on order.

A number of fleet management systems makers are using the product and have significant volumes on order as does automotive black box maker Meta System, which is providing insurance companies with data from in-car black box systems, and will increase its order from 40,000 to up to 200,000 units this year alone. Other applications being sold include in-home surveillance and alarm systems and remote fuel monitoring for oil-fired central heating systems.

Seymour Pierce originally expected the division to sell 700,000 units or 'modules' this year and 1.5 million in 2006. It has now downgraded this to 200,000 this year and 700,000 in 2006. Accordingly, it has dropped revenue expectations to 96 million in 2005 as opposed to 113 million, reflecting modules revenue of 14 million compared to 31 million. For 2006, it forecasts modules to generate 30 million of revenue down from 58 million.

The broker has a sum of the parts valuation for the business of 68 million, and a buy recommendation, pointing out that larger rival Wavecom's shares have risen nearly 300% since Telit floated in April.

Citywire Verdict:
Shares are trading at 20 times the revised 2006 forecast earnings, and while there are always risks with technology companies, Telits core handset business is showing very strong growth and its newer data products business has some very real sales coming through.

It is difficult to predict the exact timing or value of these module deals, since a major customer such as is likely to be announced soon could take several hundred thousand modules, each of which is worth around 45 to Telit.

If Cats is right about growth running at more than 23% this year and a lot more than that next year, the share price should be justified, and those with an appetite for risk may still see this as an opportunity.ENDS.

cheers GF.
Im just waiting for these big contract wins. Could produce massive upside. Its a gamble but Ill risk it.

GF

Got this. The last paragraph I think is key. But I think the vews expressed were when the sp was higher. Can't make up my mind on this one. The ipo was 140 and now 93 so any good news should push it up. I think the price of 140 was too much.

Telit Communications - Overvalued

Background: Israeli based Telit Communications, calls itself a 'global developer of wireless communication technology'. The company was established in 2000 and has a strong trading history to support its decision to list on AIM. Following a fundraising bringing in close to 23 million at 140p, Telit will begin trading on 4th April. The entire share capital will be valued at 60.5 million.

Operations: From the highly complicated pathfinder document Telit Communications develops highly advanced mobile telephone technology. The company has two offices in Israel and Italy and two operating divisions - one that designs and develops cellular communications products for the m2m market (the glossary tells us this means 'machine to machine and is currently a high growth market) and the second division customises and distributes mobile phone handsets under the Telit brand.

'Dai Israel' (the Israeli division of the group) was originally established in 2000 by Polar Investments, which will continue to retain a majority stake on floatation. Dai Israel specialises in sourcing handsets, rebranding them to customer specifications and selling them in Israel. By 2004, this division had taken over 12% of the entire Israeli mobile handset market. The success in the Israeli market made the company strengthen its growth strategy and consider Italy as the next market place to conquer. Dai Italy was formed soon after to take over the operations of a local brand - Telit. The Italian company's operations date back to 1986 and for the last 15 years it has been developing wireless network technologies. Dai Italy claims stake to significant intellectual property in the form of patents.

Following the takeover of Dai Italy, the company executed extensive reorganisation, cutting down the number of staff from 312 to 140 and changing the focus to rebranding and reselling mobile handsets.

Going back to understanding the complicated technology that forms a main part of the Telit business, the Data Products Division is looking to cater to the m2m market. m2m allows for machine to machine communication without human interference and Telit has settled on this sector for various reasons. Statistics show that the market is growing by 47% annually in terms of units sold. In 2004, five large players accounted for 40% of the market with smaller companies struggling for the rest. Telit currently owns 1.5% which brings in revenues of EUR 75 million and is looking to build this to a 5% market share globally. The company's focus within the m2m market (which gives an indication of the application of this mysterious technology) is digital and satellite set top boxes, automated meter reading, vehicle security alarms and point of sale technology.

The Branded Enhanced Value Added Reseller division (essentially one that sources phones from Korea and Taiwan and rebrands them to sell in Italy in Israel) is looking to capitalise on growth in the use of non-branded phones - estimated to increase from 15.9% in 2003 to 30% in 2004.

Distribution channels for all products have been established through value add distributors (accounting for 74% of sales) and the company depends on its sales and marketing teams based in Israel and Italy. From the pathfinder prospectus, it seems like the company has managed to push its productions into countries as far as China, France, Germany, Brazil and Romania.

Apart from its many operations, the company invests a great deal in intellectual property development and believes its patents to have significant commercial value. Although thankfully, intangible assets on the balance sheet is valued at only EUR 86,000.

The most recent set of results are not particularly a reflection of the company's revenue earning capabilities as a third party loan write off (on acquisition) brought pre-tax profits upto EUR 9.7 million on a turnover of EUR 75.3 million (Year end to 31 December 2004). Operating losses, excluding the loan write off worth nearly EUR 12 million came in at EUR 1.7 million.

Business Development: As with all new companies listing, Telit believes it is the right time to pursue an AIM listing. A floatation will enhance the profile of the group among its peers, and its customers, which the board believes will have a positive impact on revenues. Funds raised will be used towards strengthening marketing, research and development.

Management: Oozi Cats, CEO and founder of the company has 18 years of creating leading business ventures. He is also responsible for forming Auto Depots, the Israeli mass merchandising chain for vehicle supplies. Yitzhal Apeloig, Chairman, was the CEO of Polar Infrastructure Ltd. and has served as financial officer and vice president of NASDAQ traded Magal Security Systems. David Hobley and Andrea Mandel Mantello are non-executive directors on the board.

Investment Conclusion: The technology sounds like it has potential. The company seems to be operating at a level where it claims to have significant market share to build on the existing brand, the management are cost conscious and this shows in the number of jobs axed at Dai Italy. Intellectual property, which should have commercial potential is valued prudently at EUR 86,000. These are some of the positive signs to investing in m2m technology developing Telit. But as always, the potential seems to be valued on a high multiple of hope and the technology seems worryingly complex - how many investors really understand this company fully?. Ignoring the one off cancellation of a loan, the company continues to have borrowings of nearly EUR 28 million and is loss making at the operating level. 60.5 million at 140p seems a high price to pay for Telit. If you believe in the story, this might be one to revisit if the share price drops. On fundamentals, the company seems overvalued.

Contact details: Seymour Pierce - 02071078000

Hi GF, been reading up about this one looks quite promising. Nice to see the director topping up the other day and Polar increasing their stake in the company, have you brought in yet?

Bought Quite a few Blackbelt. Its started to move upwards today and Im awaiting news on these two fantastic contracts.

cheers Gf.

joined you with a few of these mr finger....looks like a solid outfit not taken many but will add if the chart starts to look a bit better

Welcome aboard TW.

cheers Gf.

From the other place.

CURRYPASTY - 29 Sep'05 - 07:48 - 42 of 43


RNS Number:9226R
Telit Communications PLC
29 September 2005



Press Release 29 September 2005

Telit Communications plc

("Telit" or "the Company")

Telit wins contract with a leading global IT systems integrator

Telit Communications plc (AIM:TCM), the global wireless communications developer
and distributor, announces that it has signed a contract with one of the world's
leading IT solution providers to develop GPRS modules for the European roll-out
of a new Automatic Meter Reading ("AMR") project.

Under the terms of the contract, Telit will lead the research and development
("R&D") of a GPRS based communications solution as part of an AMR project. The
Telit designed AMR solution allows for automated meter readings whereby energy
providers will be able to read their customers' electricity and gas meters
through M2M ("machine to machine") wireless communication. Telit's GPRS modules
will be integrated into electricity meters in households in Europe as part of
the AMR rollout within the utility sector.

Due to the extensive R&D necessary for the project, Telit's patented module will
be an integral part of the design and functionality of the AMR device.

Oozi Cats, Chief Executive of Telit, commented, "Telit's data products division
is at the forefront of innovation in this exciting and lucrative sector. This
agreement with one of the world's leading system integrators further emphasises
the need for m2m GPRS products and we are proud to have been selected as the
major supplier for this important project.

"This project gives good visibility for our future earnings. We are confident
that over the next four years this contract will give rise to significant
revenues in its early stages with further significant revenues thereafter. I
look forward to updating shareholders on this project in the near future."

I wonder who it is then?. I see a big buy of 25 ,000 as gone through.

So Mr Cat is going to update in the near future. Wondering wether to buy some more now.

cheers GF.

cross trade showing looks a bit strange

and wee tick up follows

Was just thinking that myself. I thought they were supposed to change hands in one transaction at the same price. Can anyone help here?.

cheers Gf.

Moving up niceley and still way below its placing price. News on another large contact due anytime.

cheers GF.

nice solid day.....lots of room above 118

Now above a quid. NICE.

cheers GF.

WOW look at this..........................

30-Sep-05 Telit Communications TCM Cats, Oozi 500,000 @ 110.00p 550,000
30-Sep-05 Telit Communications TCM Cats, Oozi 37,500 @ 96.00p
A director putting his own money behind the company.

Must say though Id rather a Jack Smith or a Joe Brown was running the company. These fancy yuppy names tend to put me off.

cheers GF.

nice couple od days on this one....chart looking healthier too however would be delighted if it could clear the 120 mark

Im sure it will TW and in fairly quick time.

cheers GF.

Any chance that 34.5p is the bottom for TCM, following the recent director purchase?

Wow! Up 25% today. Does anyone know why?