MiX Telematics Posts Higher Profit In Q1 - Update

(RTTNews) - Fleet management technology solutions provider MiX Telematics Ltd. (MIXT) Tuesday reported a higher first-quarter profit, reflecting significant increase in subscription revenue as well as vehicles under subscription. The company also issued earnings per share outlook for fiscal year 2014, with revenue growth of 8 to 11 percent.

Stefan Joselowitz, chief executive officer of the firm said, "Our momentum is being driven by strong customer demand in a substantial and highly underpenetrated market. In addition, we believe MiX Telematics is highly differentiated by our leadership position in both fleet and passenger vehicle management, proven history of innovation and powerful global distribution model." For the first quarter, the Midrand, South Africa-based company's profit increased to 26.34 million South African rand or $2.64 million, from 24.62 million rand in the previous year.

On a per share basis, earnings were flat at 4 South African cents per share. Earnings per American Depositary Receipt, or ADR rose to $0.10 from $0.09 per share a year ago.

Adjusted EBITDA for the period was 65.2 million rand , up from 60.6 million rand reported last year.

Total revenues grew 6.4 percent to 298.45 million rand or $29.95 million from 280.38 million rand in the preceding year. Subscription revenue increased 21.8 percent, while Hardware and other revenue decreased 13.8 percent.

Total vehicles under subscription increased by 29 percent year-over-year, bringing the total to over 376,900 subscribers as at June 30.

Looking ahead to the second quarter, the company anticipates subscription revenue to be in the range of 198 million rand to 203 million rand, representing a year-over-year growth of 20 percent to 23 percent.

For the fiscal 2014, MiX Telematics expects earnings of 15 to 16 South African cents per share, and earnings per ADS of 36 to 39 U.S. cents.

Revenues for the year are anticipated to be between 1.269 billion rand and 1.299 billion rand, which would represent revenue growth of 8 to 11 percent compared with fiscal year 2013.

MIXT closed Monday's regular trading at $15.53 on the NYSE. In the pre-market activity on Tuesday, the shares are down 3.29 percent.