Spirent Communications swings to loss in first half

6th Aug 2024 09:09

(Sharecast News) - Spirent Communications said on Tuesday that it swung to a loss in the first half as revenue fell amid challenging trading conditions.

In the six months to the end of June, the company swung to a reported pre-tax loss of £7.5m from a profit of £4.8m in the same period a year earlier. Revenue fell 12% to £197.3m, while the order book was down 6% at £284.2m. Order intake declined 21% to £188.8m.

Spirent said the industry-wide slowdown continued in 2024, particularly in the telecommunications sector, where customer spending remained constrained.

"This coupled with customer hesitancy resulting from the recent announcement of the offer for the group by Keysight contributed to the impact of the group's performance in the first half of the year," it said. "We continue to engage closely with our customers to understand their needs.

"These factors impacted our first half order intake and revenue, as many customers continued to display caution in their investment decisions, including delayed deployments of 5G standalone (with a 5G core network), and the impact on spending in China."

The company said it expects the challenging market conditions seen in the first half to continue in the second, and for this to be reflected in its near-term performance.

"Looking forward, our confidence in 5G as an enduring growth driver remains intact and acceleration is anticipated in 2025 as demand-side drivers increase," it added.