Light Reading
'Strong headwinds' in certain markets depress earnings of test and measurement technology vendor.

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
    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 Documentaries
    Paul Bunyan's Giant Gigabit Plans

    12|22|14   |   03:26   |   (0) comments


    Gary Johnson, the CEO and GM of Minnesota rural operator Paul Bunyan Communications, discusses the company's 5,000-square-mile gigabit network rollout.
    LRTV Interviews
    CenturyLink: Building the Case for NFV

    12|19|14   |   02:14   |   (0) comments


    At the 2020 Vision Executive Summit, James Feger, VP, Network Strategy & Development at CenturyLink, talks about how the US operator is approaching virtual network functions from an operational and business case perspective.
    LRTV Interviews
    Liberty Global Sees Business Goldmine

    12|18|14   |     |   (0) comments


    Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
    LRTV Documentaries
    EE: The Road to 5G

    12|16|14   |   16:02   |   (1) comment


    Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
    LRTV Huawei Video Resource Center
    Highlights of Huawei's NFV Open Cloud Forum 2014

    12|16|14   |     |   (0) comments


    Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
    LRTV Custom TV
    Realizing Operators' Digital Vision

    12|16|14   |   5:23   |   (0) comments


    Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
    LRTV Documentaries
    US Cellular Injects Analytics Into LTE

    12|16|14   |   2:57   |   (1) comment


    US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
    LRTV Interviews
    How Cox Biz Plans to Keep Growing

    12|15|14   |     |   (2) comments


    Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
    LRTV Huawei Video Resource Center
    Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

    12|15|14   |   2:50   |   (0) comments


    Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
    LRTV Huawei Video Resource Center
    Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

    12|15|14   |   3:43   |   (0) comments


    Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
    LRTV Interviews
    How Cable Biz Services Hit $10B Mark

    12|12|14   |     |   (1) comment


    Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
    LRTV Documentaries
    Mediacom Aims to Test Connected Tractors

    12|11|14   |   05:07   |   (3) comments


    Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
    Upcoming Live Events
    February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
    March 17, 2015, The Cable Center, Denver, CO
    April 14, 2015, The Westin Times Square, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Hot Topics
    T-Mobile, BlackBerry Flirt With Reuniting
    Sarah Reedy, Senior Editor, 12/17/2014
    1-Gig: Coming to a Small Town Near You
    Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
    Comcast Launches 4K Streaming Service
    Alan Breznick, Cable/Video Practice Leader, 12/18/2014
    US Carriers, You're Going to Cuba!
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 12/18/2014
    Google Steering Android Towards Cars – Report
    Dan Jones, Mobile Editor, 12/19/2014
    Like Us on Facebook
    Twitter Feed
    Webinar Archive