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RNS Number : 0504F
Spirent Communications PLC
12 November 2020
SPIRENT COMMUNICATIONS PLC
Third Quarter 2020 Trading Update
London, UK - 12 November 2020: Spirent Communications plc
("Spirent", the "Company" or the "Group") (LSE: SPT), a leading
test, measurement, analytics and assurance technology company for
next-generation networks, applications and devices, today issues
the following Trading Update for the third quarter of the Company's
financial year, from 1 July to 30 September 2020, and for the year
to date.
Group performance
We are pleased to see continued strategic momentum and the Board
remains confident that the Group will show progress in 2020. Our
expectations for the full year remain unchanged.
Trading in the third quarter was similar to that experienced in
the second quarter where 5G-led demand for our assurance solutions
continued to show strong growth, offsetting some market softness in
order placement for Positioning products from US government
contractors, which have been affected by COVID-19 with many office
and lab closures. Year to date revenue growth is tracking broadly
in line with our stated mid-single digit target.
Networks & Security
Demand for our high-speed Ethernet products continued to grow
too as we supported customers in developing their 5G
infrastructure, particularly in APAC. We also released a
cloud-enabled offering on the AWS Marketplace to help the industry
reduce testing complexity for public and hybrid clouds. Despite a
relatively slow rebound in activity from US government customers
for Positioning solutions, we are building pipeline and securing
wins from new customers in APAC.
Lifecycle Service Assurance
Strong momentum and demand for products in both the lab and the
live assurance market has resulted in good growth in the third
quarter. We have continued to secure key wins for our 5G core
network lab test solutions from customers in all regions, as the
market prepares for standalone 5G and the future data tsunami. We
continue to secure wins from new North American customers for our
live network assurance solutions.
Connected Devices
Although some of our customers have delayed their respective 5G
device launches, we are continuing to win orders for our new 5G
device test solution. The industry continues to focus on 5G network
rollouts as a priority, which we expect to enable deployment of
more new devices, services and applications.
Commenting on the results, Eric Updyke, Chief Executive Officer,
said:
"I am delighted with the ongoing determination and adaptability
of all staff at Spirent ensuring our commitment to our customers.
The demand for data and communications continues to strengthen as
customers carefully manage through the pandemic."
"We have maintained good traction with our customers and we
continue to benefit from the diversity of our portfolio as
increased demand for our assurance solutions offset some short-term
lumpiness in order placement in other areas."
"Overall, we are on track to show full year progress in 2020
with, as in previous years, trading performance weighted to the
second half of the year and to the final quarter. Our expectations
for the full year remain unchanged."
- ends -
Enquiries
Eric Updyke, Chief Executive Spirent Communications +44 (0)129 376
Officer plc 7676
Paula Bell, Chief Financial
& Operations Officer
James Melville-Ross/Dwight Burden/Emma +44 (0)203 727
Hall FTI Consulting 1000
About Spirent Communications plc
Spirent Communications plc (LSE: SPT) offers test, measurement,
analytics and assurance solutions for next-generation devices and
networks. Spirent provides products, services and information
solutions for high-speed Ethernet, positioning mobile network
infrastructure markets, with expanding focus on service assurance,
cybersecurity and 5G. Spirent is accelerating the transition of
connected devices, network equipment and applications from
development labs to the operational network, as it continues to
innovate toward fully-automated testing and autonomous service
assurance solutions . Further information about Spirent
Communications plc can be found at
https://corporate.spirent.com/
Spirent Communications plc Ordinary Shares are traded on the
London Stock Exchange (ticker: SPT; LEI: 213800HKCUNWP1916L38). The
Company operates a Level 1 American Depositary Receipt (ADR)
programme with each ADR representing four Spirent Communications
plc Ordinary Shares. The ADRs trade in the US over-the-counter
(OTC) market under the symbol SPMYY and the CUSIP number is
84856M209. Spirent ADRs are quoted on the Pink OTC Markets
electronic quotation service which can be found at
http://www.otcmarkets.com/marketplaces/otc-pink
Spirent and the Spirent logo are trademarks or registered
trademarks of Spirent Communications plc. All other trademarks or
registered trademarks mentioned herein are held by their respective
companies. All rights reserved.
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undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
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