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RNS Number : 0031S
Spirent Communications PLC
11 November 2021
SPIRENT COMMUNICATIONS PLC
Third Quarter 2021 Trading Update
London, UK - 11 November 2021: Spirent Communications plc
("Spirent", the "Company" or the "Group") (LSE: SPT), a leading
test, measurement, analytics and assurance technology company for
next-generation networks, applications and devices, today issues
the following Trading Update for the third quarter of the Company's
financial year, from 1 July to 30 September 2021, and for the year
to date.
Group performance
We are pleased to report continued momentum and the Board
remains confident that the Group will show solid progress in 2021.
Our expectations for the full year remain unchanged and in line
with market consensus(1) .
In the third quarter we secured several key strategic wins.
These wins included larger, longer-term contracts, that support our
strategy to improve visibility and build repeatable business by
growing our footprint in our customers' labs and continuing to move
into their live networks. For the nine months to the end of
September, order intake growth was strong at 13 per cent (organic 9
per cent) with revenue growth of 7 per cent (organic 5 per cent),
resulting in book to bill of 105 as we continue to build our
orderbook. Once again, 5G continues to be a strong driver of growth
in demand across our solution portfolio.
We have been managing the growing global supply chain challenges
well and consistent with many industries, are seeing more component
cost rises which we are responding to with price increases.
Lifecycle Service Assurance
Strong momentum and demand for products in both the lab and the
live assurance market resulted in good order growth in the third
quarter. We continue to secure multi-year contracts increasing
longer term visibility.
Key wins included a large and strategic 5G order from Dish
Networks, an innovative new North American network operator that
plans to become the first telecom company to run its service on the
public cloud. Dish will be utilising both our lab-based and live
network solutions to autonomously test and validate its 5G network
core.
Networks & Security
During the year we aligned our application and security test
offerings more closely with our high-speed Ethernet products and
go-to-market. As a result, application and security testing is
gathering momentum as we continue to support customers to develop
their 5G infrastructure and has delivered growth year to date
compared to the prior year. We have made good progress in growing
our business with the Hyperscalers by focusing on their 5G
initiatives. We are winning high-speed Ethernet business across the
spectrum, from supporting Mobile Edge Compute initiatives to an
industry-first commercial 800G win. Lab-based activities at US
government customers for our Positioning solutions have yet to
fully rebound and we expect full year Positioning revenue to be
similar to last year.
Commenting on the results, Eric Updyke, Chief Executive Officer,
said:
"We are continuing to grow in our key focus areas, such as lab
to live assurance and driving our services offerings, whilst
carefully managing ongoing supply chain disruption. The cyclicality
in the business continues to reduce as we win more multi-year work
and build sustainable revenues."
"Overall, we are on track to show full year progress in 2021
with, as in previous years, trading performance weighted to the
second half of the year and to the final quarter. Whilst supply
chain management has become more challenging, our expectations for
the full year remain unchanged."
Note
1. Market consensus for 2021 includes ten analysts who have
reported forecasts as of 13 October, revenue $568 million and
adjusted operating profit $115 million.
- ends -
Enquiries
Eric Updyke, Chief Executive Spirent Communications
Officer plc +44 (0)1293 767676
Paula Bell, Chief Financial E: investor.relations@spirent.com
& Operations Officer
Charles Palmer/Dwight FTI Consulting Limited +44 (0)20 3727 1000
Burden/ E: SCspirent@fticonsulting.com
Jamille Smith
About Spirent Communications plc
Spirent Communications plc (LSE: SPT) is the leading global
provider of automated test and assurance solutions for networks,
cybersecurity, and positioning. The Company provides innovative
products, services and managed solutions that address the test,
assurance and automation challenges of a new generation of
technologies, including 5G, SD-WAN, Cloud, autonomous vehicles and
beyond. From the lab to the real world, Spirent helps companies
deliver on their promise to their customers of a new generation of
connected devices and technologies. Further information about
Spirent Communications plc can be found at
https://corporate.spirent.com/ .
Spirent Communications plc Ordinary Shares are traded on the
London Stock Exchange (ticker: SPT; LEI: 213800HKCUNWP1916L38). The
Company operates a Level 1 American Depositary Receipt (ADR)
programme with each ADR representing four Spirent Communications
plc Ordinary Shares. The ADRs trade in the US over-the-counter
(OTC) market under the symbol SPMYY and the CUSIP number is
84856M209. Spirent ADRs are quoted on the Pink OTC Markets
electronic quotation service which can be found at
https://www.otcmarkets.com/marketplaces/otc-pink .
Spirent and the Spirent logo are trademarks or registered
trademarks of Spirent Communications plc. All other trademarks or
registered trademarks mentioned herein are held by their respective
companies. All rights reserved.
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guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
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