15th Apr 2020 09:08
(Alliance News) - Spirent Communications PLC on Wednesday reported first-quarter revenue growth and affirmed its intention to pay its final dividend, bucking the trend of listed companies pulling payouts due to the Covid-19 crisis.
Revenue in the period to March 31 grew by 12% year-on-year, which Spirent said "drove robust profit growth compared to the same period in 2019".
"We benefited from our strong opening orderbook, and we have continued to build momentum into the second quarter," Spirent said.
"The development of 5G continues at pace, and we have secured key orders to support our customers across the portfolio. We are working closely with Asian service providers who have committed to accelerate their 2020 5G deployment targets so their networks have more capacity and coverage to meet increasing demand. As Spirent continues to solve bigger business challenges for our customers we have also been appointed as adviser to the UK government's 5G security working group to help develop policy and set standards."
Spirent provides testing, analytics and security for telecommunications networks. For 5G operators, it offers test and assurance solutions.
Back in January, UK Prime Minister Boris Johnson allowed Chinese firm Huawei Technologies Co Ltd to have a limited role in the country's 5G network.
Spirent reported "strong demand" in its Networks & Security unit as well as in its Lifecycle Service Assurance division.
The Connected Devices segment made a "reasonable start" to 2020, securing contract wins with 5G handset manufacturers in the US.
"The launch of devices by our customers may be impacted by delay as a result of the virus, however, we continue to build interest in our new 5G device test product," Spirent cautioned.
"After taking into account the strong cashflow in the period, which resulted in a cash balance of USD208 million at March 31, the board confirms payment of the previously announced final dividend of 3.45 cents per share."
Shares in Spirent were 2.9% higher at 235.10 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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