Spirent Communications operating profit drops in Q3
By Michele Maatouk
Date: Thursday 03 Nov 2016
(ShareCast News) - Spirent Communications reported a drop in operating profit in the third quarter as revenue declined but the group said it was on track to meet full-year expectations.
Adjusted operating profit came in at $10.2m from $14m in the third quarter of last year as revenue fell to $110.9m from $125m.
Spirent said 2015 revenue had benefited from a $10.3m shipment of hand-held test tools within Service Assurance, which was not expected to repeat this year.
On a brighter note, order intake in the third quarter was up at $108.5m from $100.8m and the group said Asia was particularly strong as Chinese network equipment manufacturers invested in their domestic infrastructure build-out and global growth.
In Europe, however, customer consolidation and market challenges resulted in some weakness.
"The pipeline for contracts for the fourth quarter is large and attractive, combined with the momentum in our core business Networks & Applications, gives the board confidence that the full year results will be broadly in line with previous expectations," Spirent said.
Also on Thursday, Spirent said chairman Alex Walker has decided to retire and will not seek re-election at the annual general meeting next May. The search for a new chairman will begin in due course.
At 1048 BST, the shares were up 0.2% to 82.38p.
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