Light Reading

Spirent Reports Full-Year Results

Light Reading
News Wire Feed
Light Reading
2/27/2014
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 2013.

Financial highlights

  • Group revenue of $413.5 million (2012: $472.4 million); with a sequential improvement of 17% in the second half-year compared with the first half of 2013.
  • Book to bill ratio was 105 (2012: 97) reflecting the improving market dynamics in the second half of 2013 and Spirent's key product launches.
  • Group adjusted operating profit of $50.1 million (2012: $118.3 million) on lower revenue and after increased investment in product development and sales and marketing of $19.3 million compared to the prior year.
  • Dividend increased by 10%. Final dividend proposed of 2.01 cents per Ordinary Share, giving a full year dividend of 3.54 cents per Ordinary Share.
  • Free cash flow of $43.9 million (2012: $84.0 million); cash closed at $216.2 million after share buyback and dividends totalling $76.9 million.

    Operational and strategic highlights
    There were strong headwinds in certain market segments and geographies exacerbated by historical under investment in certain parts of the business given the significant changes in the industry:

  • Intense competition in the data center market and spending shifting to virtual and cloud based services.
  • Wireless device vendors experienced lower profitability and a lull in new technology and service launches.
  • Adverse macro-economic conditions in Europe coupled with spending caution by Chinese customers earlier in the year. In spite of these challenges there were areas of progress:
  • Structural reorganisation of the Group into business units to create maximum focus on meeting customers' changing needs as reported in January 2014.
  • Service providers increased infrastructure spending on high density core routers and 100G Ethernet.
  • Spirent introduced a family of next-generation high speed Ethernet test solutions, incorporating market leading realism and scale, to address increasing complexity and the explosion of data traffic in service provider and data center networks.
  • Launched Avalanche NEXT, a powerful, easy-to-use solution that tests the performance, scalability and security of application-aware network infrastructures with positive feedback from customers.
  • Underscored our industry leadership in GNSS testing with the first commercially available support for the Chinese BeiDou satellite navigation system.

    Spirent Communications plc (NYSE: SPM; London: SPT)

    (1)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Vishnu Goel
    50%
    50%
    Vishnu Goel,
    User Rank: Light Beer
    2/28/2014 | 10:12:27 AM
    T&M vendors need to cross crucial Billion Dollar mark!
    These excellent results reported from Spirent indicate sequential and YOY improvement,and a sort of healthy Book2Bill ratio.But the key things for the IP based platform company will be building traction in Asia,Crossing the Billion Dollar mark earlier than targeted and success both in terms of Marquee Customers and wider solution range in the LTE/LTE-adv market.Vishnu Goel T&M+919810101238 
    Flash Poll
    From The Founder
    The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
    LRTV Huawei Video Resource Center
    Huawei Shares Its Vision of the Future of Mobile Networks Innovations

    2|26|15   |   2:30   |   (0) comments


    Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
    LRTV Huawei Video Resource Center
    Accelerate Digitizing, Boost Digital Business

    2|26|15   |   6:14   |   (0) comments


    A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
    LRTV Huawei Video Resource Center
    The Secret Recipe to Enabling Hyper-Growth Industries

    2|26|15   |   3:38   |   (0) comments


    With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
    LRTV Documentaries
    BTE 2015 Is Bigger & Even Better

    2|25|15   |   03:13   |   (4) comments


    This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
    LRTV Interviews
    Light Reading ICT Leaders Roundtable at MWC 2015

    2|12|15   |   1:07   |   (2) comments


    On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
    LRTV Documentaries
    Going Green in 2015

    2|12|15   |   02:04   |   (0) comments


    Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
    LRTV Custom TV
    SDN & NFV: Where Are We Going From Here?

    2|11|15   |   11:27   |   (0) comments


    Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
    LRTV Documentaries
    Time for Gigabit Europe?

    2|9|15   |   01:27   |   (4) comments


    Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
    LRTV Interviews
    Brocade Brings New IP Vision to 2020 Vision Executive Summit

    2|3|15   |   4:23   |   (0) comments


    In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
    LRTV Interviews
    Brocade's Kelly Herrell on the New IP

    2|2|15   |   12:36   |   (0) comments


    In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
    LRTV Huawei Video Resource Center
    Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

    1|29|15   |   6:28   |   (0) comments


    Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
    LRTV Huawei Video Resource Center
    Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

    1|29|15   |   3:39   |   (0) comments


    In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
    Upcoming Live Events
    March 17, 2015, The Cable Center, Denver, CO
    April 14, 2015, The Westin Times Square, New York City, NY
    May 12, 2015, Grand Hyatt, Denver, CO
    All Upcoming Live Events
    Infographics
    Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
    Hot Topics
    Cyber Security Expert Warns: You're Doing It Wrong
    Sarah Thomas, Editorial Operations Director, 2/23/2015
    10 Weirdly Useful IoT Devices
    Eryn Leavens, Copy Desk Editor, 2/24/2015
    Small Cells Enabling Location Services
    Sarah Thomas, Editorial Operations Director, 2/25/2015
    Is FCC Weighing Net Neutrality Changes?
    Mari Silbey, Independent Technology Editor, 2/25/2015
    MWC: Let the Madness Begin
    Ray Le Maistre, Editor-in-chief, 2/23/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
    G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.