Light Reading

Spirent Reports Q1 Interim Financials

Light Reading
News Wire Feed
Light Reading

LONDON -- Spirent Communications plc ("Spirent", the "Company" or the "Group") (LSE: SPT), a leading communications technology company, announces the following unaudited Interim Management Statement covering the period from 1 January to 22 April 2014. All figures relating to trading are for the period 1 January to 31 March 2014.

Trading to date
Order intake in the first quarter of 2014 grew by 12% compared to the first quarter of 2013, with organic growth at 9%. Revenue for the period at $111.9 million showed a 16% increase, organically up 14%. This included revenue of $12.0 million within Service Assurance delayed from 2013 which distorted the Group's book to bill ratio reported as 91, the underlying ratio being 102. The investments set out in the full year results for 2013 are well under way. Further momentum is expected during the second quarter of 2014.

Highlights - first quarter 2014


  • Group revenue increased by 16% to $111.9 million (first quarter 2013: $96.8 million). Acquisitions completed during the first quarter of 2014 contributed $1.1 million.
  • Service Assurance revenue rose $13.2 million driven by revenue recognised of $12.0 million from field test orders delayed from 2013.
  • Order intake up 12% compared to the first quarter of 2013 with an improving trend in all segments; book to bill ratio at 91 for the Group was distorted by Service Assurance; underlying book to bill ratio of 102 (first quarter 2013: 94).
  • Adjusted operating profit increased to $11.4 million (first quarter 2013: $10.5 million) after additional investment in product development and sales and marketing of $6.8 million.
  • Free cash inflow of $2.9 million (first quarter 2013: $7.9 million) as working capital was absorbed to fund revenue growth.
  • Closing cash was $163.6 million at 31 March 2014 (31 December 2013: $216.2 million) after an outflow on two acquisitions of $39.2 million and $16.4 million for share repurchases.

    With an expanding portfolio of innovative solutions, Spirent continues to focus on addressing the needs of its customers:

  • Huawei selected Spirent TestCenterTM to validate the performance of its latest CloudEngine data center switch in a test of massive scale;
  • Introduced SimSAFE, a test bed that enables evaluation of Global Navigation Satellite System ("GNSS") receiver resilience and aids the development of counter-measures;
  • Quantum was launched, an automated user experience analytics system for measuring and driving improvements to the battery life of mobile devices under a wide range of consumer usage scenarios;
  • Spirent made further contributions to advancing ultra-high bandwidth networking with release of a new high density 100G test solution supporting the latest-generation CFP4 optical transceiver interface;
  • China Mobile's research division, China Mobile Research Institute, selected Spirent Landslide to verify the performance of its 4G/3G evolved packet core network; and
  • Announced Spirent Velocity, the first open-framework, cloud-based test platform for rapid development and validation of software-defined networking and network functions virtualization technologies and deployments.

    Eric Hutchinson, Chief Executive Officer, commented: "Spirent has made significant progress at the start of 2014. The new company structure is established and new executives have been appointed to strengthen the management teams. Advances have been made in the development of new products and solutions and in driving our strategy at all levels. Market conditions have improved in all regions compared to 2013."

    Trading is currently in line with the Board's expectations of achieving high single digit organic revenue growth for the year, as set out at the time of the Preliminary Results and we are encouraged by the progress we are making towards the achievement of our planned goals in 2014.

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

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    From The Founder
    Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    Between the CEOs
    Centec on Ethernet Switching

    11|26|15   |   09:58   |   (0) comments

    Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
    LRTV Custom TV
    Delivering Service Agility in the Virtualization Era

    11|25|15   |   5.41   |   (0) comments

    Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
    Wagner’s Ring
    How Might Open Source Fail?

    11|24|15   |     |   (9) comments

    Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
    LRTV Custom TV
    NFV Lifecycle Orchestration – a Fresh Vision for Telco

    11|23|15   |   6.40   |   (0) comments

    Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
    Between the CEOs
    Cisco's Virtual Role in Saudi

    11|20|15   |   12:15   |   (2) comments

    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    LRTV Huawei Video Resource Center
    Huawei Leads With Kubernetes for Cloud PaaS

    11|19|15   |   08:26   |   (0) comments

    Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
    Women in Comms Introduction Videos
    WiC in London: The Highlight Reel

    11|19|15   |   5:33   |   (1) comment

    NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
    LRTV Documentaries
    Why Saudi's So Hot for New Tech

    11|19|15   |   05:07   |   (0) comments

    Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
    LRTV Custom TV
    Why Data Models Deliver More Value Than Information Models

    11|19|15   |   5.08   |   (0) comments

    Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
    Telecom Innovators Video Showcase
    SDN Management & Orchestration in the WAN

    11|17|15   |   7.20   |   (0) comments

    Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
    LRTV Custom TV
    Flash Networks: Optimizing for Radio Spectral Efficiency

    11|17|15   |   3:34   |   (0) comments

    Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
    LRTV Custom TV
    Making Pay-TV User Experiences Millennial-Friendly

    11|16|15   |   6:42   |   (0) comments

    The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
    Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
    Hot Topics
    Samsung to Sell Wireless Networking Unit?
    Dan Jones, Mobile Editor, 11/23/2015
    Samsung: No Sale of Wireless Unit
    Dan Jones, Mobile Editor, 11/25/2015
    How Might Open Source Fail?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
    Sprint to Get $1.2B From New Leasing Venture
    Dan Jones, Mobile Editor, 11/23/2015
    Networking Shines in HP's Gloomy Final Earnings
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
    Like Us on Facebook
    Twitter Feed
    December 15, 2015
    Virtualizing Cable Services
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
    Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
    Cats with Phones
    Can't Find the Phone on Thanksgiving? Click Here
    Check under the cat! (hint: bottom right)
    Live Digital Audio

    Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.