Spirent Communications plc (LON: SPT), a leading test, measurement, analytics and assurance technology company today issued the following Trading Update for the final quarter of the Company’s financial year, from 1 October to 31 December 2019 and for the year in full, noting all financial results are subject to external audit.
Good momentum continued into the final quarter of 2019, with the Group securing a number of important contract wins. Our customers continue to invest in 5G related infrastructure and solutions, a trend we expect to continue.
For the full year, revenue grew by 5.5 per cent to $503 million and we now expect to deliver an adjusted operating profit1 in the range of $91 to $93 million, up from $77.1 million in 2018.
In particular, we benefitted from strong growth from our Networks & Security operating segment driven by increasing demand for 400G high-speed Ethernet test solutions and the positive momentum for our positioning products continued throughout 2019. We saw strong order growth for our Lifecycle Service Assurance solutions in the last quarter; however, delivery timing was largely for 2020, resulting in broadly flat revenue for 2019. Connected Devices, despite some revenue reduction driven by increased 4G legacy decline, still delivered a solid operating profit outturn.
Cash closed at $183 million, with high cash conversion driven from continued strong working capital management.
Commenting on the results, Eric Updyke, Spirent Communications Chief Executive Officer, said:
“We are delighted to deliver another strong year of growth and earnings improvement as further evidence that our strategy is indeed working, and we expect to exceed the market’s profit expectations for the financial year 2019. We enter the new financial year with a strong orderbook and we are well positioned with leading technology to leverage more opportunities across our portfolio. Over the medium term we expect to continue to deliver mid-single digit revenue growth with a focus on increasing recurring revenue streams to enhance the Group’s visibility and effective investment in our technical platforms to drive ongoing performance.”
Spirent will announce its full year results for the financial year ended 31 December 2019 on Thursday 5 March 2020. The Company will host a results presentation at 9.30am UK time on 5 March 2020 at FTI Consulting Limited, 200 Aldersgate, Aldersgate Street, London EC1A 4HD.