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RNS Number : 3297N
Spirent Communications PLC
20 January 2023
SPIRENT COMMUNICATIONS PLC
Trading Update 2022 - Good growth in a difficult environment
London, UK - 20 January 2023 : 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 financial year ended 31 December 2022,
noting all financial results are subject to external audit.
Group performance
-- 2022 results in line with expectations, good earnings growth
-- Strong orderbook built over last 18 months
-- Strong balance sheet and cash flow, resilient business model
We are pleased to deliver our full year results for 2022 in line
with expectations having successfully navigated global economic
challenges, supply chain constraints and increasing cost inflation.
Full year revenue grew by 5.5 per cent to $607 million and we
expect to deliver an adjusted operating profit(1) slightly ahead of
market consensus(2) , showing good earnings growth over 2021.
As previously communicated, global market economic conditions
have been impacting some of our customers, resulting in delays to
their investment decisions. Whilst we expect customers to remain
committed to their development projects overall, evidenced by no
cancellations, the Group's performance is now likely to have a
heavier than usual weighting to the second half of 2023.
We continued to win important strategic deals and further built
our orderbook by 7 per cent during 2022. This performance was
achieved following significant orderbook growth in 2021. High-speed
Ethernet grew strongly driven by new product releases including new
application security products, which offset some customer timing
impacts in Lifecycle Service Assurance.
Financial position
We maintained our strong balance sheet and disciplined
investment policy. The Group's cash position closed at $210 million
supported by our effective working capital management. We remain
strongly placed to take advantage of investment opportunities as
they arise.
Outlook
We are pleased to have started the new financial year with a
strong orderbook. We are well positioned to deliver further
strategic and operational progress, with our key business drivers
intact, and we continue to invest in our leading technology
solutions across our portfolio. Overall, the Group remains
well-placed to deliver continued progress in the year ahead,
although there will be greater weighting to the second half.
Eric Updyke, Chief Executive Officer, commented:
"Against a challenging market backdrop, we have delivered a good
performance, demonstrating the enduring, through-the-cycle
strengths of our operating model and service offerings.
Networks are becoming more complex than ever before and as
customers seek faster, more reliable, more secure connectivity
solutions, the heightened need for automated testing and assurance
will require greater support from Spirent.
We expect the Group to continue to progress in 2023, and in
spite of the global economic conditions are confident in our
mid-term targets with the long-term structural growth drivers for
our business continuing to be compelling."
Spirent expects to announce its full year results for the
financial year ended 31 December 2022 on Wednesday, 8 March
2023.
Notes
1. Adjusted operating profit is before acquired intangible asset
amortisation, share-based payment and other adjusting items.
2. Management believes consensus expectations for adjusted
operating profit for the year to be $127 million, with a range of
expectations of $122 million to $131 million.
- 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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made in good faith and are based on current expectations or
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risk and uncertainty because they relate to events and depend on
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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
expressed or implied by these statements. The Company undertakes no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
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