Calnex reports 'strong' trading in new financial year

The AIM-traded firm, which was holding its annual general meeting, said that the first few months of the year saw a “positive response” to its enhancements to the ‘Lab Sync’ platform, ‘Paragon-Neo’, with customers placing “encouraging” levels of pre-orders ahead of launch later in the year.

It said the new functionality would support testing on the “very high speed” ‘400G’ interface, and the new ‘PAM4’ interface format.

That, the board said, was a “key” technology development, which was expected to be widely adopted as organisations upgraded their network infrastructure to cope with the increasing amount of data amid an increase in cloud computing and the evolution to 5G.

Additional recent product developments included the enhancement of its ‘Field Sync’ platform with a “unique ability” to test 5G networks alongside the 3G and 4G support already available.

Calnex said that would improve the “attractiveness” of the platform, as telecoms operators looked to maintain their new 5G networks.

“Whilst cognisant of the uncertainty in the wider industry over the ongoing global semiconductor shortage, the group has not experienced any negative impact on the ability to manufacture and ship product to date, and the board continues to monitor the situation closely,” the board said in its statement.

“The strength of trading and positive evolutionary trends affecting the telecoms sector described above provide the board with continued confidence in Calnex's ability to deliver on its growth strategy and a positive outcome to the year in line with current market expectations.”

At 1100 BST, shares in Calnex Solutions were down 4.39% at 109p.