Light Reading

Spirent Reports Q1 Interim Financials

Light Reading
News Wire Feed
Light Reading
4/23/2014
50%
50%

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

Financial

  • 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.

    Operational
    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."

    Outlook
    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
    Flash Poll
    From The Founder
    The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
    LRTV Documentaries
    LTE Paves the Way for the 5G Revolution

    4|20|15   |   4:20   |   (0) comments


    Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

    4|15|15   |   3:17   |   (0) comments


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    LRTV Huawei Video Resource Center
    What's in Store for Huawei & DataCore?

    4|10|15   |   05:44   |   (0) comments


    At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
    LRTV Huawei Video Resource Center
    Du Puts Its Faith in Huawei's Routers

    4|9|15   |   3:42   |   (0) comments


    Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
    LRTV Huawei Video Resource Center
    Huawei Gets Active in the Data Center

    4|9|15   |   3:17   |   (0) comments


    With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
    LRTV Huawei Video Resource Center
    Blue Consult & Huawei for a Better Solution

    4|8|15   |   4:01   |   (0) comments


    Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
    Upcoming Live Events
    May 5, 2015, Hyatt McCormick Place, Chicago, IL
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
    Hot Topics
    Verizon Scores New OTT Content Deals
    Mari Silbey, Independent Technology Editor, 4/16/2015
    What if the Comcast Merger Fails?
    Mari Silbey, Independent Technology Editor, 4/20/2015
    Nokia & Alcatel-Lucent: What's Going On?
    Ray Le Maistre, Editor-in-chief, 4/15/2015
    Huawei P8 Launch: Cue Applause!
    Ray Le Maistre, Editor-in-chief, 4/16/2015
    LPWA: A Threat to 'Wait & See' IoT Operators?
    Steve Bell, Senior Analyst, Heavy Reading, 4/16/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
    Cats with Phones
    Stig's Big Decision Click Here
    Stig's big decision for the day was to decide which item would be more fun to chew: the smartphone or the Rubik's Cube.
    Latest Comment