7th Oct 2014 06:09
LONDON (Alliance News) - Spirent Communications PLC Wednesday warned that its revenue started to be hit as trading conditions softened in the latter part of the third quarter, and it expects revenue and operating profit in the fourth quarter to be lower than it had hoped.
In a trading update, the company warned that demand levels dipped sharply as a result of merger activity and delays in capital expenditure, as future new technology deployments were being assessed in areas in which Spirent has increased its investments. It said the impact was being most felt in its networks and applications businesses.
Spirent said it now expects third-quarter revenue to be slightly below USD110.0 million, compared with USD107.7 million in the third quarter of last year, while fourth quarter revenue is now expected to be in the range of USD120.0 million and USD125.0 million because the weaker trading conditions will likely persist during the quarter.
"Operating profit will be impacted by the loss of gross profit on lower revenue than expected," it said.
Spirent will give further details when it puts out its interim management statement on November 13.
By Steve McGrath; [email protected]; @stevemcgrath1
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