Spirent Reports H1

Spirent's service assurance division reports loss, reducing overall revenues by 4% to £230.4M during the first half of the year

August 11, 2005

3 Min Read

LONDON -- Spirent plc (LSE: SPT; NYSE: SPM), a leading communications technology company, today announces its interim results for the first half of 2005.Table 1: Summary

� million

First half 2005(1)

First half 2004(1)

Change %

Revenue

230.4

239.3

(4)

Operating profit(2)

14.1

21.5

(34)

Adjusted profit before tax(3)

11.5

18.0

(36)

Reported (loss)/profit before tax

(34.1)

16.7

-

Adjusted earnings per share(3,4) (pence)

0.91

1.40

(35)





All ongoing businesses increased revenue and operating profit2 in the first half of 2005 except the Service Assurance division which reported a loss as previously announced.

  • Performance Analysis operating profit2 £11.4 million, up 50 per cent.

  • Network Products operating profit2 £12.3 million, up 14 per cent.

  • Ongoing Systems business operating profit2 £2.1 million, up 24 per cent.

  • Service Assurance operating loss2 £9.0 million, in line with our April trading update.



We are taking a goodwill impairment charge of £37.0 million in relation to the Service Assurance division. Other material one-time charges of £7.1 million with a cash cost of £3.3 million have been taken in the period.

Net debt increased to £42.4 million (31 December 2004 £26.4 million) due to a reduction in operating cash flow, including the cash cost of restructuring, increased capital expenditure and a £5.1 million currency translation impact.

Notes

1 First half 2005 refers to the period to 3 July 2005 and first half 2004 refers to the period to 4 July 2004. The results are prepared in accordance with the accounting policies set out in the document entitled 'Transition to International Financial Reporting Standards' issued on 15 July 2005.
2 Before material one-time charges and share-based payment.
3 Before material one-time charges, share-based payment and profit on disposal of operations.
4 Adjusted earnings per share is based on adjusted earnings as set out in note 6 to the Interim Report.

Anders Gustafsson, Chief Executive, commented:

“We expect the Performance Analysis division to make sequential progress in the second half of the year although conditions in the market remain variable. The Service Assurance division will continue to be loss making in the second half, albeit at a substantially reduced level as the benefits of the cost reductions are realised. The Network Products group’s performance in the second half will reflect the normal seasonality of the business. As a result our expectations for the Group’s outcome for the year as a whole remain unchanged.

“The telecoms test and monitoring market remains the focus for the Group. In the last twelve months we have achieved much to improve the way we address our target markets and to increase our operational efficiency and we are now better positioned to develop the business in line with our strategic objectives.”

Spirent plc

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