07:00 Thu 15 Nov 2018
Spirent Comm PLC - Third Quarter Trading Update
Third Quarter Trading Update
Group performance
Performance delivery is on plan with further good momentum enjoyed in the third quarter of 2018. We secured a number of key wins, providing further evidence that our strategy is working. Order intake for the nine months showed solid growth on the same period in 2017.
We continue to expect a weighting to the second half of the year, with the usual uptick in the last quarter of the year, underpinned by the expected rebound in 400G high-speed Ethernet testing, the timing of key orders for
As we continue to develop our solution selling capabilities to better address our customers' larger and more complex challenges, we have made senior appointments in the quarter, key account executives to further deepen important relationships at our largest customers and a new leader for our EMEA business.
The balance sheet remains strong with good cash conversion in the quarter and year to date.
Networks & Security
We continue to maintain our leadership position in high-speed Ethernet testing.
Following the release of recent pent up demand resulting from uncertainty in the China-US trading relationship, a multi-million dollar order was received from a large
We are currently benefiting from particularly strong demand from the US for GPS Positioning products for military and other programmes.
Expansion of our security product sales into government and enterprise continues to deliver to plan and is attracting more subscription sales, which initially delays revenue recognition to future years. In addition we announced our new Data Breach Emulation solution for holistic and hyper-realistic testing of networks and devices. We were also approved as an authorised
Lifecycle Service Assurance
Our VisionWorks solution continues to be well received by our key customers, with a further multi- million dollar win in the period from a Tier-1 service provider for our VisionWorks Customer Experience Assurance solution, building our assurance capability in the heart of their network.
We also secured a key 5G Landslide deal with a leading US service provider demonstrating the advanced 5G capabilities of this platform.
Connected Devices
We continue to see relative stability in the smartphone test market. Proactive cost management actions taken in 2017 are delivering an earnings benefit. Our strategic focus on developing 5G test capabilities is on track.
Commenting on the results,
"The business continues to perform well. We are pleased growth in order intake is now translating to revenue growth and we are building a solid platform to benefit from growing market opportunities for our VisionWorks, security and high-speed Ethernet (400G) products and solutions. The Board remains confident that the Group will show progress in 2018, and that we will at least deliver our expectations for the year."
Board update
As separately announced today,
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Enquiries
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+44 (0)1293 767676 |
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