1st May 2019 08:21
LONDON (Alliance News) - Spirent Communications PLC on Wednesday said 2019 has started "well" as the company saw earnings growth in the first quarter, thanks to new contract wins and improved demand for its products.
The FTSE 250-listed company said trading in the three months to the end of March was in line with plan, as revenue and earnings grew compared to the first quarter of 2018.
In addition, the order pipeline remains robust and order intake for the period also showed solid growth on the prior year, Spirent noted.
"The year has started well with continued revenue and profit growth compared to the same period in 2018," said Chief Executive Eric Hutchinson.
On a divisional basis, the communications technology company said its Networks & Security unit saw robust demand for GPS positioning products. It will shortly launch a new Data Breach Assessment security solution for continuous automated assessment of security and data loss prevention policies.
In the Lifecycle Service Assurance segment, a number of support contracts were secured in the period, Spirent said. Order intake momentum improved and revenue growth picked up in the quarter as a result.
The company also noted that it continues to see "relative stability" in the smartphone test market, in which its Connected Devices division operates. Spirent said it has won 5G opportunities for its Wireless solutions in China and the Nordic region.
Looking forward, Spirent said it expects a weighting to the second half of 2019, with the usual uptick in the final quarter of the year.
"The board remains confident in delivering further strategic progress in the year with no change to our outlook," Spirent said in the statement Wednesday.
The stock was trading 0.9% higher on Wednesday morning at 160.21 pence a share.
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