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Spirent's Q3 Profit Hits $31M

Spirent's performance for the period is in line with the Board's expectations

November 3, 2011

2 Min Read

LONDON -- Spirent Communications plc ("Spirent", the "Company" or the "Group") (LSE: SPT), a leading communications technology company, announces the following unaudited Interim Management Statement for the period from 3 July 2011 to date. All growth rates are against the same period in 2010 unless otherwise stated.

Trading to date

Spirent's performance for the period is in line with the Board's expectations. Group order intake grew 8% year-on-year for the first nine months of 2011. Over the same period, revenue increased by 11% and adjusted operating profit grew by 13% with return on sales for the Group maintained at 23%. Spirent's broad product portfolio of innovative test solutions and large number of geographically diverse customers has enabled the Group to mitigate substantially the effects of the current macro-economic uncertainties and deliver further positive momentum during the third quarter.

Highlights - third quarter 2011

Financial

  • Group order intake grew 4%; Performance Analysis increased 8%.

  • Group book to bill ratio of 102 (Q3 2010: 104); Performance Analysis ratio of 105 (Q3 2010: 108).

  • Revenue up by 6% to $130.2 million (Q3 2010: $123.3 million); Performance Analysis grew 10% to $104.0 million (Q3 2010: $94.2 million).

  • Reported operating profit increased by 7% to $31.1 million (Q3 2010: $29.0 million); adjusted operating profit grew 8% to $31.8 million (Q3 2010: $29.5 million).

  • Basic earnings per share rose 11% to 3.23 cents (Q3 2010: 2.92 cents); adjusted basic earnings per share also up 11% to 3.34 cents (Q3 2010: 3.00 cents).

  • Return on sales 24%.

  • Free cash generation of $25.8 million (Q3 2010: $14.8 million).

    Operational

  • In Performance Analysis strong growth in demand continued for our wireless, positioning and data center test solutions.

  • Weaker demand in Service Assurance and Systems.

  • New test solutions and customer endorsements announced since 3 July include:

    • Release of the Spirent TestCenter HyperMetrics mX 40/100G module, the highest density, most powerful solution for high speed Ethernet testing with increased emulation scale and realism;

    • Launch of Spirent's Infrastructure Test Optimization initiative; enabling customers to test more effectively and efficiently through integration, automation and collaboration;

    • Alcatel-Lucent selects Spirent's solution to test the performance of its new FP3 400G network processor in advance of its commercial introduction;

    • SGS Electrical and Electronics, a leading testing and certification company, chooses Spirent for LTE device performance testing;

    • U-blox selects Spirent for combined GPS/GLONASS multi-GNSS testing.

    Market conditions and outlook

    Market conditions during the third quarter exhibited similar trends to those reported at the half-year. Strong demand for wireless, positioning and data center test solutions continued, with a more cautious stance adopted by some wireline customers. Regionally Asia Pacific continued to grow strongly, with macro-economic concerns weighing on North America and Europe. We expect similar market conditions will remain through the fourth quarter this year. The Board anticipates that Spirent will meet its current expectations for the full year.

    Spirent Communications plc

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