Second-quarter upswing keeps Spirent on track
Automated network testing and assurance specialist Spirent Communications reported a recovery in customer spending and order intake during the second quarter on Thursday, after a slow start to the year.
The FTSE 250 company said that in the second quarter, it saw its order intake increase to reach a level similar to the same period last year.
It said its order book also experienced growth, having risen 6% since December to reach $304m.
Spirent said it was observing an increasing order pipeline and conversion rate, particularly in important areas such as 5G and positioning.
The firm said it had achieved significant wins in those sectors, contributing to its positive performance.
Additionally, Spirent said it was on the verge of finalising a significant lab and test automation opportunity in a brand new strategic customer segment, financial services.
A master agreement was already in place, and the company said it was currently finalising the detailed work scope.
While the company maintained its full-year expectations, it said it was anticipating a materially heavier weighting towards the second half of the year.
“Although the first half trading was materially impacted by the slowdown in customer spending, we have been encouraged by the stronger momentum in the second quarter, which will feed into second half revenue and beyond,” said chief executive officer Eric Updyke.
“Our diversified portfolio of solutions and services, combined with our robust operating model has helped mitigate the slowdown in spending in the telecommunications sector as we focus on delivering innovative solutions into new customer segments.
“The board's expectations remain unchanged for the full year, albeit, as previously stated, the trading performance will be significantly more weighted to the second half of the year than usual.”
Spirent Communications said it would announce its half-year results for the six months ended 30 June on 2 August.
Reporting by Josh White for Sharecast.com.