Spirent foresees slowdown in rapid growth

4th Aug 2011 07:21

Pre-tax profit for the communications technology company Spirent Communications rose 14% to $55.8m (£34.2m)for the six months ended 3 July 2011. The company also boasted growth across all lines of business with revenue up 15% to $260.4m (£159m) and order intake up 10% with a book to bill ratio of 99.Although free cash flow was down to $17.1m (H1 2010L £33.4m), the company stressed this was as a result of funding higher trading activity late in the second quarter. Basic earnings per share rose 17% to 5.94 cents while the adjusted basic earnings per share was up 24% to 6.25 cents.The group's interim dividend increased by 15% to 1.26 cents per share (equivalent to 0.77 pence per share, 12% up on the first half of 2010).In the wireless and positioning markets, the group saw strong growth in the first half of 2011. Towards the end of the period a more cautious stance was adopted by some of its customers in the wireline market, particularly in the USA.The company warned that although it anticipates further momentum throughout the remainder of the year, this will be at a lower rate than the first half, but still in line with original expectations for the second half-year.Chief Executive Officer, Bill Burns, said: "The positive outlook is based on the long term trend in our industry for investment in higher speed data connectivity worldwide. Spirent is well positioned to achieve further progress during the second half-year."NR