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Spirent Comm PLC (SPT)

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Thursday 12 November, 2020

Spirent Comm PLC

Third Quarter 2020 Trading Update

RNS Number : 0504F
Spirent Communications PLC
12 November 2020
 

SPIRENT COMMUNICATIONS PLC

Third Quarter 2020 Trading Update

 

 

London, UK - 12 November 2020: Spirent Communications plc ("Spirent", the "Company" or the "Group") (LSE: SPT), a leading test, measurement, analytics and assurance technology company for next-generation networks, applications and devices, today issues the following Trading Update for the third quarter of the Company's financial year, from 1 July to 30 September 2020, and for the year to date.

 

Group performance

We are pleased to see continued strategic momentum and the Board remains confident that the Group will show progress in 2020. Our expectations for the full year remain unchanged.

 

Trading in the third quarter was similar to that experienced in the second quarter where 5G-led demand for our assurance solutions continued to show strong growth, offsetting some market softness in order placement for Positioning products from US government contractors, which have been affected by COVID-19 with many office and lab closures. Year to date revenue growth is tracking broadly in line with our stated mid-single digit target.

 

Networks & Security

Demand for our high-speed Ethernet products continued to grow too as we supported customers in developing their 5G infrastructure, particularly in APAC. We also released a cloud-enabled offering on the AWS Marketplace to help the industry reduce testing complexity for public and hybrid clouds. Despite a relatively slow rebound in activity from US government customers for Positioning solutions, we are building pipeline and securing wins from new customers in APAC.

 

Lifecycle Service Assurance

Strong momentum and demand for products in both the lab and the live assurance market has resulted in good growth in the third quarter. We have continued to secure key wins for our 5G core network lab test solutions from customers in all regions, as the market prepares for standalone 5G and the future data tsunami. We continue to secure wins from new North American customers for our live network assurance solutions.

 

Connected Devices

Although some of our customers have delayed their respective 5G device launches, we are continuing to win orders for our new 5G device test solution. The industry continues to focus on 5G network rollouts as a priority, which we expect to enable deployment of more new devices, services and applications.  
 

Commenting on the results, Eric Updyke, Chief Executive Officer, said:

 

"I am delighted with the ongoing determination and adaptability of all staff at Spirent ensuring our commitment to our customers. The demand for data and communications continues to strengthen as customers carefully manage through the pandemic."

 

"We have maintained good traction with our customers and we continue to benefit from the diversity of our portfolio as increased demand for our assurance solutions offset some short-term lumpiness in order placement in other areas."

 

"Overall, we are on track to show full year progress in 2020 with, as in previous years, trading performance weighted to the second half of the year and to the final quarter. Our expectations for the full year remain unchanged."

 

 

- ends -

 

 

Enquiries

Eric Updyke, Chief Executive Officer

 

Spirent Communications plc

 

+44 (0)129 376 7676

Paula Bell, Chief Financial & Operations Officer

 

 

 

 

 

 

 

 

 

James Melville-Ross/Dwight Burden/Emma Hall

 

FTI Consulting

 

+44 (0)203 727 1000

 

About Spirent Communications plc

Spirent Communications plc (LSE: SPT) offers test, measurement, analytics and assurance solutions for next-generation devices and networks.  Spirent provides products, services and information solutions for high-speed Ethernet, positioning mobile network infrastructure markets, with expanding focus on service assurance, cybersecurity and 5G. Spirent is accelerating the transition of connected devices, network equipment and applications from development labs to the operational network, as it continues to innovate toward fully-automated testing and autonomous service assurance solutions .  Further information about Spirent Communications plc can be found at  https://corporate.spirent.com/

 

Spirent Communications plc Ordinary Shares are traded on the London Stock Exchange (ticker: SPT; LEI: 213800HKCUNWP1916L38).  The Company operates a Level 1 American Depositary Receipt (ADR) programme with each ADR representing four Spirent Communications plc Ordinary Shares.  The ADRs trade in the US over-the-counter (OTC) market under the symbol SPMYY and the CUSIP number is 84856M209.  Spirent ADRs are quoted on the Pink OTC Markets electronic quotation service which can be found at  http://www.otcmarkets.com/marketplaces/otc-pink

 

Spirent and the Spirent logo are trademarks or registered trademarks of Spirent Communications plc.  All other trademarks or registered trademarks mentioned herein are held by their respective companies.  All rights reserved.

 

Cautionary statement regarding forward-looking statements

This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events.  You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words.  By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.  You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements.  The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

 

 

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