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RNS Number : 0082Z
Spirent Communications PLC
20 January 2022
SPIRENT COMMUNICATIONS PLC
Trading Update 2021 - Strong Momentum
London, UK - 20 January 2022 : Spirent Communications plc
("Spirent", the "Company" or the "Group") (LSE: SPT), the leading
provider of automated test and assurance solutions for
next-generation devices and networks, today issues the following
Trading Update for the 2021 full year, noting all financial results
are subject to external audit.
Group performance
We closed the year with strong performance in the final quarter
with several important wins across all parts of the portfolio. This
was achieved despite the ongoing global supply chain challenges
which have been managed extremely effectively.
Strong order intake growth continued through to the end of the
year, resulting in full year revenue growing by 10 per cent (7 per
cent organically(1) ) to $576 million. We now expect to deliver an
adjusted operating profit(2) slightly ahead of market consensus(3)
, which represents good earnings growth over 2020.
The growth in orders resulted in a materially higher closing
orderbook year-on-year, with increased visibility into outer years
creating a robust foundation for the new financial year.
Cash closed at $175 million, with high cash conversion driven by
continued effective working capital management.
Lifecycle Service Assurance
In the final quarter, we benefited from material growth from our
Lifecycle Service Assurance business, driven by increased demand
and new customer wins for both lab solutions and, especially, for
live assurance solutions, as 5G networks continue to roll out
globally. The octoScope acquisition, made during the year has
established Spirent's leadership of the Wi-Fi-testing market and
was successfully integrated into the global sales processes and
business systems.
Networks & Security
High-speed Ethernet demand outperformed the last quarter of
2020, while Spirent's application security sales continued to
progress well; some rebound was also experienced in orders for
lab-based Positioning products.
Commenting on the results, Eric Updyke, Chief Executive Officer,
said:
"2021 progress represented another key milestone on our
strategic journey where we again delivered strong financial
performance, despite global supply chain challenges throughout the
year, which we managed extremely effectively.
"Spirent's customers continue to invest in 5G-related
infrastructure, devices and services, a trend we expect to continue
and I am delighted we are making strong progress with our strategic
agenda to deliver sustainable profitable revenue growth.
"Our business model is becoming increasingly resilient,
supported by a robust financial and operational platform, and we
are pleased to begin the new financial year with a growing
orderbook with improved visibility. We are well placed to deliver
further progress, with our key business drivers intact, and we
continue to invest in our leading technology solutions across our
portfolio."
Spirent expects to announce its full year results for the
financial year ended 31 December 2021 on Thursday, 10 March
2022.
- ends -
Notes
1. Excluding the impact of acquisitions.
2. Adjusted operating profit is before charging exceptional
items and acquisition related costs, acquired intangible asset
amortisation and share-based payment.
3. Management believes consensus expectations for adjusted
operating profit for the year to be $116 million, with a range of
expectations of $113 million to $121 million.
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 Burden/ FTI Consulting Limited +44 (0)20 3727 1000
Jamille Smith E: SCspirent@fticonsulting.com
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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undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
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obligation to update any forward-looking statements contained in
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