24th Oct 2013 09:58
LONDON (Alliance News) - Spirent Communications PLC Thursday said it expects revenues in the region of USD115 million to USD120 million in the fourth quarter, impacted by delayed orders, as it saw declining revenues in its third quarter.
Spirent provides services in the communications test and measurement industry. Its shares were trading down 4.70% at 117.7 pence per share Thursday morning.
For the third quarter ended September 29, the company posted revenues of USD107.7 million, down from USD111.7 million in the previous year. Revenue grew 6% in the United States, but was weighed down by a 7% drop in Asia and 25% in Europe. Operating profit was down to USD16.1 million from USD27.9 million in the previous year.
The company said that revenue for the third quarter was in line with expectations, and that conditions continued to be volatile as customer demand was uncertain due to significant changes taking place in the wireless device test industry. However, revenue outlook for the fourth quarter would be impacted by delays in customers accepting systems that had been deferred until the first half of 2014. Spirent expects this will have an impact of around USD12 million.
Spirent does not anticipate market conditions to change in the fourth quarter, it said, although it is seasonally one of the company's largest.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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