Calnex confident in outlook as it launches new products

22nd Aug 2024 12:16

(Sharecast News) - Telecommunications test and measurement and cloud computing specialist Calnex Solutions reported significant advancements in product development and strategic initiatives in an update on Thursday, despite ongoing challenges in the telecoms sector.

The AIM-traded firm, which was holding its annual general meeting, said the launch of its major Paragon-Neo release was on track for the second half of the 2025 financial year.

It said the release, focussed on 800 gigabits-per-second synchronisation testing for next-generation high-speed ethernet, had received positive initial feedback from customers during pre-production testing.

The company was optimistic about the level of customer interest in the new technology.

In the first half of the 2025 period, Calnex successfully launched the SNE-X, featuring 400GbE interfaces, designed to meet growing demand in the cloud computing and data centre markets.

The product was the first network emulator specifically tailored for AI infrastructure and other high-performance computing networks, positioning Calnex to capitalise on emerging trends in the sectors.

Calnex said it also completed a significant overhaul of its sales channels and channel partner network.

After ending its reseller agreement with Spirent, Calnex said it had established a new channel partner network that was now fully operational across key territories, including North America, Europe, the Middle East and Africa, and the Asia-Pacific region.

The transition to the new multi-channel arrangement was expected to be earnings-enhancing, with the company now working to establish direct supplier agreements with key customers to further strengthen its relationships.

Despite a challenging telecoms market, Calnex said it was confident in its outlook for the full financial year.

The company said it maintained tight cost controls, benefitting from a healthy balance sheet.

Its board anticipated that the company's performance for the full year would align with market expectations, with growth expected to resume in the second half of the year, supported by the successful launch of new products.

At 1141 BST, shares in Calnex Solutions were down 0.23% at 52.38p.

Reporting by Josh White for Sharecast.com.