Spirent Communications Half Year Report
Spirent Communications plc (“Spirent”, the “Company” or the “Group”) (LSE: SPT), a leading communications technology company, today announces its half year results for the six months ended 30 June 2017.
- Revenue level at $213.6 million (first half 2016: $213.5 million).
- Strong trading performance in Networks & Security, demand for our positioning products offset some slowing of Ethernet testing demand in the second quarter. Application Security tracks to plan with increasing sales in enterprise and government.
- As expected, sales of Lifecycle Service Assurance products for the full year 2017 will be second half weighted, customer trials are progressing positively.
- Decline in Connected Devices has been managed well, reporting an adjusted operating profit of $0.5 million (first half 2016: $2.7 million loss).
- Adjusted operating profit up 67 per cent to $17.4 million (first half 2016: $10.4 million).
- Strong business wins including new customers in Asia, in part mitigating weakness currently being experienced in Americas and Europe, due to some delayed customer projects.
- Strong cash flow management.
- Adjusted basic EPS up 86 per cent to 2.10 cents (first half 2016: 1.13 cents).
Eric Hutchinson, Chief Executive Officer, commented:
“We are pleased with the progress in the first half, delivering improved earnings and operating margin on level revenue, driven from good performance from our Networks & Security segment and cost management actions across the business.
Taking into account the exit of some of our non-core product lines and the impact of Ethernet testing delays in the United States, we expect revenues for the year to be broadly flat. The Board’s expectations for profit for the full year remains unchanged.
Longer-term, the prospects for active test and analytics solutions are significant, and across our three segments, these results give me confidence that we are prioritising the right areas in our efforts to drive sustainable earnings growth.”