8th May 2008 07:00
Spirent Communications PLC08 May 2008 SPIRENT COMMUNICATIONS PLC INTERIM MANAGEMENT STATEMENT (UNAUDITED) London, UK - 8 May 2008: Spirent Communications plc ("Spirent", the "Company" orthe "Group") (LSE: SPT), a leading communications technology company, announcesthe following unaudited Interim Management Statement for the period since 31December 2007. Trading performance for the period since 31 December 2007 is in line with theBoard's expectations. The results for the first quarter of 2008 are set forth below: Continuing operations £ million 1st quarter 1st quarter 2008 2007 Revenue 59.0 54.4Operating profit/(loss) 9.6 (0.6)Earnings per share (basic) - pence 1.22 0.07 Earnings from continuing operations include a charge in both quarterly periodsof 0.08 pence per share for share-based payment and amortisation of intangibleassets. Performance Analysis Revenue for the division, expressed in US dollars, was $85.5 million in thefirst quarter of 2008 compared with $73.3 million for the first quarter of 2007,an increase of 17 per cent. The increase reflects, in part, a comparison withlower than usual sales in the first quarter of last year and the Companycontinues to budget for sales growth for 2008 as a whole in the mid single digitrange. Orders in April have been satisfactory and the division continues tomaintain a substantial order book. Service Assurance Service Assurance saw two per cent growth in revenues in US dollars andgenerated an improved operating profit performance through a combination of ahigher gross profit margin, due to an increased element of software revenue inthe quarter, and reduced overhead expense. Systems Systems' revenue decreased as a result of exchange impact and lower volumes.Profitability was maintained through cost control. A recovery in sales volumehas been made in April. Profitability The improvements in gross profit margin and overall profitability of the Groupreflect the realisation of benefits from the restructuring implemented in 2007. Cash The closing cash position was £66.7 million at 4 May 2008 (31 December 2007: £79.0 million) after an outflow of £22.5 million in the period for the share repurchase programme. Outlook We anticipate that trading performance for the year will continue to be in linewith our expectations. Edward Bramson, Chairman, commented: "Spirent has continued to benefit from last year's operational restructuring andApril orders have given an encouraging start to the second quarter. We are alsomaking good progress in new product development to address the opportunitiescreated for us by continual evolution in broadband and wireless technologies." - ends - Enquiries Edward Bramson, Executive Chairman Spirent Communications plc +44 (0)1293 767676Eric Hutchinson, Chief Financial Officer Andrew Dowler/Harriet Keen Financial Dynamics +44 (0)20 7831 3113 The Company's AGM is being held today at 10.30am UK time at the offices of the Company's PR Advisers, Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London. The interim half year results for 2008 will be announced on Thursday 7 August 2008. About Spirent Communications plc Spirent Communications plc is a leading communications technology companyfocused on delivering innovative systems and services to meet the needs ofcustomers worldwide. We are a global provider of performance analysis andservice assurance solutions that enable the development and deployment ofnext-generation networking technologies such as broadband services, Internettelephony, wireless and web applications and security testing. The Systemsgroup develops power control systems for specialist electrical vehicles in themobility and industrial markets. Further information about SpirentCommunications plc can be found at www.spirent.com. Spirent Communications plc Ordinary shares are traded on the London StockExchange (ticker: SPT). The Company operates a Level 1 American DepositaryReceipt ("ADR") programme with each ADR representing four Spirent Communicationsplc Ordinary shares. The ADRs trade in the US over-the-counter ("OTC") marketunder the symbol SPMYY and the CUSIP number is 84856M209. Spirent ADRs arequoted on the Pink OTC Markets electronic quotation service which can be foundat www.pinksheets.com. Spirent and the Spirent logo are trademarks or registered trademarks of SpirentCommunications plc. All other trademarks or registered trademarks mentionedherein are held by their respective companies. All rights reserved. This document may contain forward-looking statements which are made in goodfaith and are based on current expectations or beliefs, as well as assumptionsabout future events. You can sometimes, but not always, identify thesestatements by the use of a date in the future or such words as "will","anticipate", "estimate", "expect", "project", "intend", "plan", "should","may", "assume" and other similar words. By their nature, forward-lookingstatements are inherently predictive and speculative and involve risk anduncertainty because they relate to events and depend on circumstances that willoccur in the future. You should not place undue reliance on theseforward-looking statements, which are not a guarantee of future performance andare subject to factors that could cause our actual results to differ materiallyfrom those expressed or implied by these statements. The Company undertakes noobligation to update any forward-looking statements contained in this document,whether as a result of new information, future events or otherwise. Consolidated income statement (unaudited)Quarter ended 30 March 2008 1st quarter 2008 1st quarter 2007 £ million £ millionContinuing operationsRevenue 59.0 54.4Cost of sales (21.5) (22.2) Gross profit 37.5 32.2Product development (10.5) (11.5)Selling and distribution (10.9) (13.2)Administration (6.5) (8.1) Operating profit/(loss) 9.6 (0.6)Net finance income 0.9 1.3 Profit/(loss) before tax 10.5 0.7Tax (1.1) (0.1) Profit/(loss) for the period from continuing operations 9.4 0.6after taxDiscontinued operationsLoss for the period from discontinued operations - (1.5) Profit/(loss) for the period attributable to equity 9.4 (0.9)holders of parent Earnings/(loss) per share (pence)Basic and diluted 1.22 (0.10)Basic and diluted from continuing operations 1.22 0.07 Segmental analysis - continuing operations 1st quarter 2008 1st quarter 2007 £ million £ millionRevenuePerformance Analysis 43.2 37.7Service Assurance 8.3 8.3 Communications 51.5 46.0Systems 7.5 8.4 59.0 54.4 Operating profit/(loss)Performance Analysis 7.9 0.1Service Assurance 1.7 (0.1) Communications 9.6 -Systems 0.7 0.8Non-segmental (0.7) (1.4) 9.6 (0.6) Other informationDepreciation 2.2 2.8Capital expenditure 1.9 1.5Share-based payment 0.4 0.5Intangible amortisation 0.2 0.2 AppendixSpirent Communications plcConsolidated income statement by quarter (unaudited) £ million 2007 2008 Q1 Q2 Q3 Q4 Q1Continuing operationsRevenue 54.4 59.8 59.2 63.6 59.0Cost of sales (22.2) (26.0) (21.9) (21.5) (21.5) Gross profit 32.2 33.8 37.3 42.1 37.5Product development (11.5) (11.3) (10.2) (11.5) (10.5)Selling and distribution (13.2) (12.4) (10.7) (10.8) (10.9)Administration (8.1) (17.1) (7.5) (10.0) (6.5) Operating profit/(loss) (0.6) (7.0) 8.9 9.8 9.6 Exceptional items - 12.6 - 1.8 -Operating profit/(loss) before exceptional items (0.6) 5.6 8.9 11.6 9.6 Net finance income 1.3 1.8 1.6 2.0 0.9 Profit/(loss) before tax 0.7 (5.2) 10.5 11.8 10.5Tax (0.1) (0.6) (1.2) 9.6 (1.1) Profit/(loss) from continuing operations after 0.6 (5.8) 9.3 21.4 9.4taxDiscontinued operationsProfit/(loss) from discontinued operations (1.5) (6.8) - 0.4 - Profit/(loss) for the quarter (0.9) (12.6) 9.3 21.8 9.4 Earnings/(loss) per share (pence) - continuingoperationsBasic 0.07 (0.67) 1.06 2.51 1.22Adjusted basic 0.07 0.78 1.06 1.66 1.22Diluted 0.07 (0.67) 1.06 2.48 1.22Weighted average number of shares in issue at 875.0 873.7 873.6 859.8 768.7period end - basic (million)Weighted average number of shares in issue at 880.3 884.2 880.7 868.6 770.2period end - diluted (million) Adjusted earnings from continuing operationsProfit/(loss) from continuing operations after 0.6 (5.8) 9.3 21.4 9.4taxExceptional items - 12.6 - 1.8 -Tax on exceptional items - - - (3.9) -Prior year tax credit - - - (5.3) - 0.6 6.8 9.3 14.0 9.4 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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