10th Oct 2023 17:16
(Alliance News) - Calnex Solutions PLC on Tuesday said it expects annual revenue to fall short of current market expectations.
Calnex shares fell 30% to 66.00 pence each on Tuesday in London.
The Linlithgow, Scotland provider of test and measurement solutions for the global telecommunications sector said it anticipates revenue to be between 20% and 30% lower than market expectations, citing challenging market conditions, with order inflow remaining at subdued levels experienced at the start of the year. Calnex concludes its financial year on March 31.
It emphasised that no customer orders have been cancelled with all expected to be fulfilled. Revenue in financial 2023 rose 25% to GBP27.4 million from GBP22.0 million. The Financial Times, citing two analysts, pitches the revenue consensus for the current financial year around GBP24 million, which would be a year-on-year decline of 13%.
"The board is confident in a return to growth in FY25, with Calnex able to deploy its suite of products to target opportunities in both the Telecoms and Cloud-computing and related sectors. Costs are closely monitored with investment in new products subject to stringent assessment," the firm said.
Chief Executive Officer Tommy Cook said: "Looking to the longer-term, the underlying market drivers continue to build, such as the need to upgrade telecoms infrastructure to deliver the promise of 5G, and to enhance data centre operations to support the demand for cloud computing and advancements in AI and virtual reality technologies. As a result, our confidence in the long-term prospects for Calnex remains high."
By Tom Budszus, Alliance News reporter
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