Interim Management Statement

Spirent Communications PLC 08 May 2008 SPIRENT COMMUNICATIONS PLC INTERIM MANAGEMENT STATEMENT (UNAUDITED) London, UK - 8 May 2008: Spirent Communications plc ("Spirent", the "Company" or the "Group") (LSE: SPT), a leading communications technology company, announces the following unaudited Interim Management Statement for the period since 31 December 2007. Trading performance for the period since 31 December 2007 is in line with the Board's expectations. The results for the first quarter of 2008 are set forth below: Continuing operations £ million 1st quarter 1st quarter 2008 2007 Revenue 59.0 54.4 Operating profit/(loss) 9.6 (0.6) Earnings per share (basic) - pence 1.22 0.07 Earnings from continuing operations include a charge in both quarterly periods of 0.08 pence per share for share-based payment and amortisation of intangible assets. Performance Analysis Revenue for the division, expressed in US dollars, was $85.5 million in the first quarter of 2008 compared with $73.3 million for the first quarter of 2007, an increase of 17 per cent. The increase reflects, in part, a comparison with lower than usual sales in the first quarter of last year and the Company continues to budget for sales growth for 2008 as a whole in the mid single digit range. Orders in April have been satisfactory and the division continues to maintain a substantial order book. Service Assurance Service Assurance saw two per cent growth in revenues in US dollars and generated an improved operating profit performance through a combination of a higher gross profit margin, due to an increased element of software revenue in the quarter, and reduced overhead expense. Systems Systems' revenue decreased as a result of exchange impact and lower volumes. Profitability was maintained through cost control. A recovery in sales volume has been made in April. Profitability The improvements in gross profit margin and overall profitability of the Group reflect the realisation of benefits from the restructuring implemented in 2007. Cash The closing cash position was £66.7 million at 4 May 2008 (31 December 2007: £79.0 million) after an outflow of £22.5 million in the period for the share repurchase programme. Outlook We anticipate that trading performance for the year will continue to be in line with our expectations. Edward Bramson, Chairman, commented: "Spirent has continued to benefit from last year's operational restructuring and April orders have given an encouraging start to the second quarter. We are also making good progress in new product development to address the opportunities created for us by continual evolution in broadband and wireless technologies." - ends - Enquiries Edward Bramson, Executive Chairman Spirent Communications plc +44 (0)1293 767676 Eric Hutchinson, Chief Financial Officer Andrew Dowler/Harriet Keen Financial Dynamics +44 (0)20 7831 3113 The Company's AGM is being held today at 10.30am UK time at the offices of the Company's PR Advisers, Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London. The interim half year results for 2008 will be announced on Thursday 7 August 2008. About Spirent Communications plc Spirent Communications plc is a leading communications technology company focused on delivering innovative systems and services to meet the needs of customers worldwide. We are a global provider of performance analysis and service assurance solutions that enable the development and deployment of next-generation networking technologies such as broadband services, Internet telephony, wireless and web applications and security testing. The Systems group develops power control systems for specialist electrical vehicles in the mobility and industrial markets. Further information about Spirent Communications plc can be found at www.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 www.pinksheets.com. 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. 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. Consolidated income statement (unaudited) Quarter ended 30 March 2008 1st quarter 2008 1st quarter 2007 £ million £ million Continuing operations Revenue 59.0 54.4 Cost of sales (21.5) (22.2) Gross profit 37.5 32.2 Product development (10.5) (11.5) Selling and distribution (10.9) (13.2) Administration (6.5) (8.1) Operating profit/(loss) 9.6 (0.6) Net finance income 0.9 1.3 Profit/(loss) before tax 10.5 0.7 Tax (1.1) (0.1) Profit/(loss) for the period from continuing operations 9.4 0.6 after tax Discontinued operations Loss for the period from discontinued operations - (1.5) Profit/(loss) for the period attributable to equity 9.4 (0.9) holders of parent Earnings/(loss) per share (pence) Basic and diluted 1.22 (0.10) Basic and diluted from continuing operations 1.22 0.07 Segmental analysis - continuing operations 1st quarter 2008 1st quarter 2007 £ million £ million Revenue Performance Analysis 43.2 37.7 Service Assurance 8.3 8.3 Communications 51.5 46.0 Systems 7.5 8.4 59.0 54.4 Operating profit/(loss) Performance Analysis 7.9 0.1 Service Assurance 1.7 (0.1) Communications 9.6 - Systems 0.7 0.8 Non-segmental (0.7) (1.4) 9.6 (0.6) Other information Depreciation 2.2 2.8 Capital expenditure 1.9 1.5 Share-based payment 0.4 0.5 Intangible amortisation 0.2 0.2 Appendix Spirent Communications plc Consolidated income statement by quarter (unaudited) £ million 2007 2008 Q1 Q2 Q3 Q4 Q1 Continuing operations Revenue 54.4 59.8 59.2 63.6 59.0 Cost of sales (22.2) (26.0) (21.9) (21.5) (21.5) Gross profit 32.2 33.8 37.3 42.1 37.5 Product development (11.5) (11.3) (10.2) (11.5) (10.5) Selling and distribution (13.2) (12.4) (10.7) (10.8) (10.9) Administration (8.1) (17.1) (7.5) (10.0) (6.5) Operating profit/(loss) (0.6) (7.0) 8.9 9.8 9.6 Exceptional items - 12.6 - 1.8 - Operating profit/(loss) before exceptional items (0.6) 5.6 8.9 11.6 9.6 Net finance income 1.3 1.8 1.6 2.0 0.9 Profit/(loss) before tax 0.7 (5.2) 10.5 11.8 10.5 Tax (0.1) (0.6) (1.2) 9.6 (1.1) Profit/(loss) from continuing operations after 0.6 (5.8) 9.3 21.4 9.4 tax Discontinued operations Profit/(loss) from discontinued operations (1.5) (6.8) - 0.4 - Profit/(loss) for the quarter (0.9) (12.6) 9.3 21.8 9.4 Earnings/(loss) per share (pence) - continuing operations Basic 0.07 (0.67) 1.06 2.51 1.22 Adjusted basic 0.07 0.78 1.06 1.66 1.22 Diluted 0.07 (0.67) 1.06 2.48 1.22 Weighted average number of shares in issue at 875.0 873.7 873.6 859.8 768.7 period end - basic (million) Weighted average number of shares in issue at 880.3 884.2 880.7 868.6 770.2 period end - diluted (million) Adjusted earnings from continuing operations Profit/(loss) from continuing operations after 0.6 (5.8) 9.3 21.4 9.4 tax Exceptional items - 12.6 - 1.8 - Tax on exceptional items - - - (3.9) - Prior year tax credit - - - (5.3) - 0.6 6.8 9.3 14.0 9.4 This information is provided by RNS The company news service from the London Stock Exchange
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