Spirent reports ‘robust’ order pipeline in trading update
Telecoms testing and analytics firm Spirent Communications, has reported a solid start to the year and a “robust” pipeline of orders in its first quarter trading update.
The company said its trading performance was in line with its plan and that revenue and earnings grew compared to the same period in 2018.
In addition, the order pipeline remains robust and order intake for the period also showed solid growth compared with the same period in 2018.
“As is typical for Spirent we expect a weighting to the second half of the year, with the usual uptick in the final quarter of the financial year”, the company said in a stock market statement.
“The Board remains confident in delivering further strategic progress in the year with no change to our outlook.”
Networks & Security
Spirent said it continued to maintain its leadership position in high-speed Ethernet test and showcased our capabilities at the OFC conference in San Diego, with the world's highest-density 400/200/100/50 Gigabit Ethernet test system.
“We see robust demand for our GPS positioning products and will shortly launch our new Data Breach Assessment security solution for continuous automated assessment of security and data loss prevention policies, as demand for our leading security solutions continues to grow”, it said.
Lifecycle Service Assurance
A number of support contracts were secured in the period, originally expected late 2018, and the firm’s VisionWorks solution continues to be well received by its key customers.
Demand for Spirent’s Mobility products grew driven by 5G and other Landslide expansion opportunities. The company also secured key orders for 10G and 100G probes from a Tier 1 US network operator. Order intake momentum improved and revenue growth picked up in the quarter as a result.
Spirent showcased its 5G test leadership at a public demonstration at the Mobile World Congress in Barcelona, where its Landslide solution was used to validate the conformance and performance of a 5G standalone core network.
The company said it continues to see relative stability in the smartphone test market and our strategic focus on developing 5G test capabilities is on track.
“We have expanded our routes to market and have won important 5G opportunities for our Wireless solutions in China and the Nordic region on the back of our strong technical support”.
Commenting on the results, Eric Hutchinson, Chief Executive Officer, said: "The year has started well with continued revenue and profit growth compared to the same period in 2018.
“Our pipeline remains robust, our market leading technologies, appropriate R&D investment and strong customer relationships continue to underpin our plans to support growth.
“We have also increased our customer key account reach and account management team to ensure we continue our focused approach to business growth."
Spirent’s shares were trading 1.5 per cent higher at £1.61 on the London Stock Exchange earlier.
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