13th Jul 2023 08:50
(Alliance News) - Spirent Communications PLC on Thursday said its trading in the first half of the year was "materially impacted" by a slowdown in customer spending.
Order intake for the first half was USD239 million, down 19% against the year prior. Spirent said order intake gathered positive momentum as the period progressed, however.
Nonetheless, the company said the order intake momentum had not yet fed into revenue by the end of the first six months of the year. Interim revenue totalled USD224 million, down 20% on a year before.
As a result, operating profit in the first half was reduced by negative operating leverage. Spirent expects this to reverse in the second half.
"Although the first half trading was materially impacted by the slowdown in customer spending, we have been encouraged by the stronger momentum in the second quarter, which will feed into second half revenue and beyond," said Chief Executive Eric Updyke.
"The board's expectations remain unchanged for the full year, albeit, as previously stated, the trading performance will be significantly more weighted to the second half of the year than usual."
Spirent Communications is a Crawley, England-based provider of automated test and assurance solutions for devices and networks. Shares were up 0.6% at 171.90 pence in London on Thursday morning.
By Heather Rydings, Alliance News senior economics reporter
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