13th Jan 2020 09:13
(Alliance News) - Spirent Communications PLC said Monday it was able to continue its good momentum into the fourth quarter and expects its full year profit to exceed market expectations.
Shares in the FTSE 250-listed telecommunications network testing and analytics firm were 15% higher in London on Monday morning at 235.00 pence each.
Spirent said it was able to secure a number of "important" contract wins in the final three months of 2019, resulting in 2019 total group revenue rising by 5.5% versus the year before to USD503 million.
The company also expects its adjusted operating profit to be between USD91 million and USD93 million - which would represent a rise of between 18% and 21% on the USD77.1 million reported the year before.
"We are delighted to deliver another strong year of growth and earnings improvement as further evidence that our strategy is indeed working, and we expect to exceed the market's profit expectations for the financial year 2019," Chief Executive Eric Updyke said.
Spirent said it saw strong growth is its Networks & Security unit, with demand increasing for 400G high-speed Ethernet test solutions during the year.
The company also noted strong order growth for its Lifecycle Service Assurance products in the final quarter, but this is expected to benefit 2020 more than 2019.
Its Connected Devices unit saw a "solid" operating profit outturn, despite some revenue reduction driven by increased 4G legacy decline.
"We enter the new financial year with a strong order-book and we are well positioned with leading technology to leverage more opportunities across our portfolio," Updyke continued.
He added: "Over the medium term we expect to continue to deliver mid-single digit revenue growth with a focus on increasing recurring revenue streams to enhance the group's visibility and effective investment in our technical platforms to drive ongoing performance."
Spirent is scheduled to release its 2019 results on March 5.
By Paul McGowan; [email protected]
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