Shares in Spirent Communications (LSE:SPT) PLC fell 5% after the company revealed disappointing growth in its Networks & Security division and reported pressures in the Connected Devices segment in its half-year results.
The telecommunications testing company saw its revenues increase 4% to £467.6 million in the six months that ended 30 June 2023, along with 2% growth in operating profit to £67.8 million. However, stagnation in key segments of the business led to investor concerns, reflected in the share price drop.
Spirent's management acknowledged the challenges, pointing to competitive pressures and outlining the need for strategic realignment to adapt to the changing market landscape.
Despite the mixed results, the company expressed optimism about future growth, with a focus on innovation and emerging technologies such as 5G.
At 9.55 am, the shares were changing hands for 159.6p, down 8.4p.