Spirent reports higher profits

5th May 2010 13:52

Telecoms test equipment supplier Spirent Communications says trading has started positively in 2010 and the company is on course to achieve expectations for this year. Revenues increased 5% to $107.9m in the first quarter of 2010 but it fell 3% in sterling terms to £69.5m. The rate of growth in operating profit was also slower in sterling but it still rose by one-fifth to £11.5m. A higher tax charge due to lack of available tax losses meant that earnings per share fell by 6% to 1.34p. Operations generated £16.5m in cash during the first quarter, which helped cash balances increase to £127.1m. Demand from the fixed-line sector is weak but mobile demand is stronger. Order intake, in dollar terms, rose 12% and the order book has held steady. The figures were slightly below Daniel Stewart estimates but it is sticking with its forecast of a rise in full year profits from £55.5m to £69.1m.