Spirent sees rise in operating returns

5th Nov 2009 08:21

Communications technology firm Spirent Communications said trading in the second half of the year has been in line with expectations.‘During the third quarter we have seen a return to market stability and we have increased profitability,’ said Bill Burns, chief executive officer.Revenue in the third quarter of 2009 eased to £63.1m from £64.8m in the corresponding quarter of 2008, but operating profit improved to £13.6m from £11.7m.The Performance Analysis division saw revenue slide by 13% year on year (yoy) in dollar terms in the first nine months of 2009, but has experienced three consecutive quarters of increased order intake.The Service Assurance business unit saw the operating return on sales in the third quarter increase to 20%, compared to 10% in the third quarter of 2008.Revenue from legacy devices is in decline but this is being replaced by growth in sales of new products and services.The company said the Systems division has remained profitable in tough market conditions. The market for motor controllers has been especially hard hit, but there are signs that the industrial business is beginning to perk up. ‘The outlook for the fourth quarter is positive,’ Burns said, with the wireless device performance test market earmarked for an especially strong performance.