TIDMSPT
RNS Number : 9025F
Spirent Communications PLC
10 November 2022
SPIRENT COMMUNICATIONS PLC
Third Quarter 2022 Trading Update
On track to deliver another year of good progress
London, UK - 10 November 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 third quarter of the Company's financial
year, from 1 July to 30 September 2022, and for the year to
date.
Highlights
-- Strong quarterly trading performance, high win rate and record orderbook.
-- Revenue growth of 10 per cent year to date.
-- Our expectations for the full year remain unchanged.
-- Robust balance sheet with closing cash position of $188 million at the end of September 2022.
Group performance
We are pleased to report continued positive performance in the
third quarter. We have maintained our high win rate despite seeing
some customers delaying decisions in recent weeks. Overall, given
the strong performance in the year to date and the strength of our
forward orderbook, we remain confident in our expectations for Full
Year 2022 and beyond.
We continued to see good order growth and secured a significant
number of large contracts which will feed into next year's revenue
performance and beyond. For the nine months to the end of September
we delivered 10 per cent revenue growth and continued to build the
scale and quality of our orderbook. Once again, 5G continues to be
a strong and enduring driver of growth in demand across our
increasingly software-based solutions portfolio.
We have continued to manage the global supply chain challenges
well, simplifying our product range, resulting in fewer component
sourcing requirements. We do not expect any material improvement to
the sourcing environment until sometime next year, but have
experienced a stabilisation of both lead times and cost
increases.
Financial position
We maintain our strong balance sheet and disciplined investment
policy. The Group's cash position closed at $188 million on 30
September 2022. During the quarter we purchased $6.1 million of
shares for our employee benefits scheme.
Lifecycle Service Assurance
Demand for products particularly in the live assurance market
resulted in good order growth in the third quarter which will
largely feed into revenue performance next year and beyond as we
continue to secure multi-year contracts.
A key win in the quarter was our first major Managed Services
(TaaS - Test-as-a-Service) order in India, from one of the largest
service providers delivering design-assurance and security support
for their new 5G innovation lab. In July, we launched our new
easy-to-deploy, next-generation assurance solution called Vantage
and the pipeline of customer interest continues to build.
Networks & Security
We delivered solid growth in high-speed Ethernet and continue to
build a strong orderbook for 2023 revenue. We cemented our 800G
Ethernet test leadership with our first win for this technology at
a leading Hyperscaler, and also benefited from strong growth in
APAC in the period. The rationalisation of our product line,
coupled with inventory management, is resulting in reduced lead
times to our customers. In addition, our plan to drive R&D
efficiency as we transition resource to lower-cost territories is
on track. Although some handset manufacturers have reduced their
volumes and therefore testing requirements for our Positioning
products, we won new business in the Defence sector, including in
APAC.
Eric Updyke, Chief Executive Officer, said:
"I am pleased to report that we have delivered another quarter
of positive performance. The strong growth in orders to date for
Lifecyle Service Assurance is building the pipeline of future
years' revenue, whilst in the nearer term, we are seeing continued
success in high-speed Ethernet.
"We remain confident in our expectations for the full year, with
our trading performance weighted to the busy final quarter, as in
previous years. At the same time, we will continue to closely
monitor the impact of the global economic environment on our
customers.
"Spirent will continue to benefit from the long-term structural
growth drivers in our industry as our customers demand more
rigorous end-to-end assurance and testing solutions to deliver
faster, more resilient, more reliable networks. Our market
leadership position and differentiated, high-quality operating
model leaves us well placed to build on our track record of
sustainable value creation through the cycle."
- ends -
Enquiries
Eric Updyke, Chief Executive Spirent Communications +44 (0)1293 767676
Officer plc E: investor.relations@spirent.com
Paula Bell, Chief Financial
& Operations Officer
James Melville-Ross/James Dentons Global Advisors +44 (0)20 7664 5095
Styles/Humza Vanderman/Leah E: spirent@dentonsglobaladvisors.com
Dudley
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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