First Quarter Trading Update

RNS Number : 1444X

Spirent Communications PLC

04 May 2016

 

SPIRENT COMMUNICATIONS PLC

First Quarter Trading Update

London, UK - 4 May 2016: Spirent Communications plc ("Spirent", the "Company" or the "Group") (LSE: SPT), a leading communications technology company, today issues the following Trading Update for the period from 1 January to the date of this announcement ahead of its Annual General Meeting to be held at 1.00 pm today.  All figures relating to trading are for the period 1 January to 31 March 2016.

Trading to date

Revenue for the period was $102.7 million compared with $96.6 million for the first quarter of 2015. Growth in Networks & Applications and in Service Assurance of 14 per cent and 9 per cent respectively was countered by the expected lower revenue in Wireless and Positioning, down 9 per cent.

Adjusted operating profit for the period was $1.8 million (first quarter 2015: adjusted operating loss $3.6 million).

Order intake in the period was broadly in line with our expectations. Regionally, we saw growth in demand in APAC offset by North America and EMEA as customers were slow to release budgets.

Results

The results for the first quarter of 2016 are set out below:

$ million	1st quarter 2016	1st quarter 2015
Revenue	102.7	96.6
Adjusted operating profit/(loss)1	1.8	(3.6)
Free cash flow2	16.2	12.5

Notes

1 Adjusted operating profit is before charging acquisition related costs, acquired intangible asset amortisation and share-based payment.

2 Operating cash flow after tax, net interest and net capital expenditure.

Cash position

In the first quarter of 2016 free cash inflow was $16.2 million (first quarter 2015: $12.5 million). Cash and cash equivalents closed at $115.2 million (31 December 2015: $102.0 million).

Outlook

The Board's outlook for the full year 2016 remains unchanged.

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Enquiries

Eric Hutchinson, Chief Executive Officer		Spirent Communications plc		[phone]
Rachel Whiting, Chief Financial Officer
James Melville-Ross/Emma Appleton		FTI Consulting		[phone]

About Spirent Communications plc

Spirent Communications plc is a global leader in test and measurement inspiring innovation within development labs, communication networks and IT organisations.  We enable today's communication ecosystem as well as tomorrow's emerging enterprises to deploy life enriching communications networks, devices, services and applications.  Further information about Spirent Communications plc can be found at http://corporate.spirent.com/.

Spirent Communications plc Ordinary Shares are traded on the London Stock Exchange (ticker: SPT).  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/otc-pink/home.

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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