Light Reading
Spirent Communicatios releases preliminary results for the year ended Dec. 31, 2012

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
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Custom TV
    Advantech Accelerates 100G Traffic Handling

    10|17|14   |   7:56   |   (0) comments


    Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
    LRTV Huawei Video Resource Center
    Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

    10|16|14   |   4:49   |   (0) comments


    Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
    LRTV Huawei Video Resource Center
    Huawei's Comprehensive Storage Solutions Vital for SVR

    10|16|14   |   6:16   |   (0) comments


    SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
    LRTV Huawei Video Resource Center
    Mexico's Servitron's Impression of Huawei at CCW 2014

    10|16|14   |   6:35   |   (0) comments


    Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
    LRTV Huawei Video Resource Center
    Building a Better Dubai

    10|16|14   |   2:06   |   (0) comments


    Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
    LRTV Huawei Video Resource Center
    Huawei Lights Up Malaysia Partner Maju Nusa

    10|16|14   |   1:59   |   (0) comments


    Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
    LRTV Custom TV
    Evolving From HFC to FTTH Networks

    10|15|14   |   2:19   |   (0) comments


    Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
    LRTV Custom TV
    Exploring the Future of Cable Access

    10|15|14   |   6:23   |   (0) comments


    Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
    LRTV Custom TV
    Optimizing & Monetizing WiFi

    10|15|14   |   5:53   |   (0) comments


    Cisco's Vince Pandolfi outlines the reasons for cable WiFi's rapid growth, lays out the issues with the technology and explains the new Cisco tools that can help operators monitor and improve their WiFi delivery.
    LRTV Huawei Video Resource Center
    Emulex & Huawei Collaboration Mutually Beneficial

    10|14|14   |   4:17   |   (0) comments


    US company Emulex collaborates with Huawei in areas such as blade servers and workload documentation. Mike Heumann of Emulex believes that Huawei has done incredibly well moving from a telecom company into servers and networks, working closely with customers to realize their needs.
    LRTV Huawei Video Resource Center
    Chile's VZION Looks Forward to Seeing More of Huawei

    10|14|14   |   4:43   |   (0) comments


    VZION is a systems integrator company in Chile with a focus on virtulization technology. In this video, Cesar Alcacibar talks about the challenges in virtualization and how Huawei helps his company to achieve the best results possible. Alcacibar is expecting more adoption and integration of Huawei technologies in Chile.
    LRTV Huawei Video Resource Center
    Pro-Datech & Huawei for a High-Tech Singapore

    10|14|14   |   2:59   |   (0) comments


    Pro-Datech Systems is a specialty IT solution provider based in Singapore. For an added value to its customers, the company uses Huawei's hardware and trusted performance and features for a total solution. It's looking forward to the creation of a lab, to be based in Singapore, for the two companies' coorporation on total storage solution.
    Upcoming Live Events
    October 29, 2014, New York City
    November 6, 2014, Santa Clara
    November 11, 2014, Atlanta, GA
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 9-10, 2014, Reykjavik, Iceland
    June 9-10, 2015, Chicago, IL
    Infographics
    WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
    Hot Topics
    Forget the Internet, Brace for Skynet
    Stephen Saunders, 10/15/2014
    HBO Will Go OTT in 2015
    Mari Silbey, Independent Technology Editor, 10/15/2014
    Google: Carriers & Cloud Providers Need to Cooperate
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
    CBS Takes OTT Plunge
    Mari Silbey, Independent Technology Editor, 10/16/2014
    iPad Air 2 Lets Users Switch Carriers Any Time
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
    Like Us on Facebook
    Twitter Feed