Spirent Communications PLC

Spirent Communications PLC (LSE: SPT) is an FTSE 250-listed provider of automated test and assurance solutions for next-generation devices and networks.

First Quarter Trading Update (Q1 FY23, released on 04 May 2023)

• Decline in Revenue: The Company reported a decline of 20% in revenue in Q1 FY23 as compared to the comparable period of Q1 FY22, on account of challenging macroeconomic conditions and delays in the customer order. Also, the order book slipped on a marginal basis and came down to USD 288 mn for Q1 FY23, which still reflects the strength and the progress made by the company to improve visibility and long-term sustainable growth.
• Improved Liquidity: The Company reported an improved cash position at USD 220 mn in Q1 FY23 which is higher by USD 210 mn as compared to the previous quarter ending in FY22.
• Dividend and Share Buyback: The Company announced the share buyback program for approx. GBP 56 mn. Further, the group had paid the final dividend of GBX 4.12 per share (collective amount of USD 30 mn) on 10 May 2023.
• Outlook: The management is optimistic and expects H2 FY23 to be more impactful along with the increasing pipeline and customer engagement to remain consistent across the year. Further, the management is working towards cost optimization on a continuous basis to improve profitability.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Spirent Communications PLC (LSE: SPT) was trading at the closing market price at GBX 178.70 (as of 01 June 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 01 June 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.’

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