& cplSiteName &

Spirent Reports 2012 Profit of $111M

Light Reading
News Wire Feed
Light Reading
3/1/2013
50%
50%

LONDON -- Spirent Communications plc (“Spirent”, the “Company” or the “Group”) (LSE: SPT), a leading communications technology company, today announces its preliminary results for the financial year ended 31 December 2012. On 1 November 2012 the Group disposed of its Systems division; this is reported as a discontinued operation in these results. All numbers provided below are for continuing operations unless otherwise stated. Financial highlights

  • Group revenue flat at $472.4 million (2011: $470.5 million) impacted by Service Assurance down 29%.
  • Book to bill ratio was 97 (2011: 103) reflecting the weaker macro-economic environment, particularly in the second half-year.
  • Group adjusted operating margin was maintained at 25% after increased investment in product development.
  • Performance Analysis revenue up 4% with strong growth in 4G/LTE wireless, data center and high speed Ethernet, largely offset by a decline of 26% in positioning test.
  • Dividend increased by 10%. Final dividend proposed of 1.83 cents per Ordinary Share, giving a full year dividend of 3.22 cents per Ordinary Share.
  • Strong free cash flow of $84.0 million (2011: $69.3 million); cash closed at $248.6 million. Operational and strategic highlights Significant strategic progress was made in 2012, through the introduction of new test solutions and the acquisition of Mu Dynamics, Inc. (“Mu”) and Metrico Wireless, Inc. (“Metrico”) taking Spirent into adjacent growth markets. Demand was driven by:
  • Expansion in data center scale for cloud computing and mobile broadband;
  • Migration of Ethernet technologies to higher speeds;
  • Application security needs resulting from mobility and growth in applications;
  • 4G/LTE technology and services such as video and voice over LTE (“VoLTE”);
  • Need for integrated infrastructure test automation to address time to market pressures. Acquired Mu for cash of $39.8 million in April 2012. Mu offers market leading expertise in cyber security. Mu’s software has been integrated within Spirent TestCenterTM, resulting in the most comprehensive solution available to test application-aware networks and security. Acquired Metrico for cash of $52.2 million in September 2012. Combining Metrico’s live network with Spirent’s lab-based mobile device test expertise has resulted in an unparalleled end-to-end test portfolio. Expanded our wireless test capabilities for the deployment of 4G/LTE networks, devices and services into the mobile device R&D market. Further test capabilities developed to serve growth in location based services and global navigation satellite systems beyond GPS. New solution developed that is practical, easy to use and cost effective for enterprises to rapidly deploy network services. Disposal of the Systems division for a cash consideration of $63.2 million completed. Outlook The difficult economic conditions that characterised market dynamics in the second half of 2012 are unlikely to change markedly during the first half of 2013, although there are some signs that confidence is returning with a few major service providers increasing capital spending plans for the year ahead. The rapid pace of innovation in mobile and data technologies continues. In 2013 Spirent’s revenue will be driven by macro demand in the Group's major regions, on-going industry trends, the full year effect of revenues from acquired businesses, and revenues attributable to new product introductions. The Group is increasing its organic investment for future growth, in particular focusing on expanding Spirent’s position in the 4G/LTE market and entering into new served markets. For 2013 as a whole, we anticipate modest revenue growth. Given the current trading conditions and a lower order book at the start of the year, the performance in the first quarter will be lower compared to the strong period last year. The Board remains confident that the Group is well placed to capitalise on significant medium and longer term opportunities. Spirent Communications plc
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    From The Founder
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Shades of Ray
    Why Analytics Is the Tech World's Digital Glue

    3|27|17   |   02:20   |   (0) comments


    It was obvious at the massive annual CeBIT enterprise tech trade show that the foundation for tech innovation right now is real-time analytics.
    LRTV Custom TV
    CommScope – Meeting the Demands of Tomorrow's Networks

    3|24|17   |     |   (0) comments


    Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
    LRTV Huawei Video Resource Center
    AMS-IX & Huawei's OSN 902

    3|24|17   |     |   (0) comments


    Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
    LRTV Huawei Video Resource Center
    Huawei's Smart Energy Innovation Center

    3|24|17   |     |   (0) comments


    In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
    Valley Wonk
    OFC & Hyperscale: A Good Mix?

    3|24|17   |   01:50   |   (0) comments


    Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
    LRTV Custom TV
    Etisalat on NFV Journey

    3|24|17   |   10:37   |   (0) comments


    Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
    LRTV Huawei Video Resource Center
    Huawei at CeBIT 2017: Day 3

    3|22|17   |     |   (0) comments


    Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
    LRTV Documentaries
    No Regrets: Cox's Finkelstein on Fiber & More

    3|22|17   |     |   (0) comments


    At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
    LRTV Documentaries
    Cable Next-Gen: The 'Mile High' View From Denver

    3|22|17   |   11:56   |   (0) comments


    Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
    LRTV Huawei Video Resource Center
    Huawei at CeBIT 2017: Day 2

    3|21|17   |   2:27   |   (0) comments


    Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
    LRTV Custom TV
    Driving Better Mobile Customer Experience While Transforming the Mobile Network

    3|21|17   |   7:47   |   (0) comments


    The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
    LRTV Custom TV
    Mastercard: What's Next for Mobile Payments?

    3|21|17   |   7:49   |   (0) comments


    2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    High-Band 5G: Let's Address the Range Question, Shall We?
    Dan Jones, Mobile Editor, 3/21/2017
    FTTH No Slam Dunk for Cable
    Carol Wilson, Editor-at-large, 3/23/2017
    Eurobites: A1, Nokia Turn It Up to 11
    Paul Rainford, Assistant Editor, Europe, 3/22/2017
    Russia's MTS: There Is No 5G Business Case
    Iain Morris, News Editor, 3/21/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
    Animals with Phones
    Neither Do We Click Here
    Is that a prerequisite?
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.