BUZZ-Telit: slides after further profit and revenue warning

** Internet of things (Frankfurt: 7IT.F - news) company Telit sinks 4 pct after cutting its revenue and earnings guidance

** Expects to report FY revenue of $374-376 million, down from $390-400 million guided in September 2017

** Cuts adjusted EBITDA guidance to $20-23 million from $44-48 million previously

** Co said in November it expected FY adjusted EBITDA to be "materially below previous guidance", without naming a new figure

** Telit says it will adopt a "conservative" approach in the preparation of results, particularly around the capitalization of R&D expenditure

** The company has long capitalized a high percentage of its R&D costs, rather than expensing them where they occur

** In FY2016, it capitalized internally generated development expenses of $30.8 mln, against amortisation of $11.6 mln and total gross R&D of $57.4 mln

** If it accounted for its R&D costs like US peer Sierra Wireless, Telit would have been loss-making for the last three years, rather than reporting a profit

** Telit says it will significantly increase R&D expenditure charged to the income statement, one of the major reasons for cutting guidance

** Stock still among one of the most-shorted in the UK, down 57 pct since May 2017 after it announced several profit warnings and its former CEO Oozi Cats was found to be a fugitive from US justice