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Perhaps the focus should be on the prospects and not highlighting yet again the slowdown in finalising orders given global uncertainty.
Hint to BoD... we know this already as background.
If you highlight it we will get another fabulous add opportunity.
Bid alert ⚠️ 📢 at these low levels.
Final results on 6th March should give a clearer picture as to what's going on.
It looks like the benefit from the trading update has already been dismissed and the share price decline has resumed. Brokers are bullish but nobody's buying. Any bets on the dividend?
Very high volume of buys. Shorts closing?
Will the media narrative no wonder disretionary spending slowed in 2022/23 causing CEOs to delay investment. Spirent is a survivor and set to capitalise going forward.
The surprise for me was how far the SP fell sub 80p and for those that added rather than sold at those levels to reduce averages this could run to the 180p area.
Dividend should continue to underpin.
Seems Numis was spot on with the buy rating mid Dec.
Mr Picky
You would have had to have been living on Mars to not be aware of the difficulties within the economies and for slowing and delayed company orders and added geo-political issues
They said in October :
" The telecommunications market is extremely challenged at this time, with Spirent's largest customers delaying their expenditure and technology investments"
so they were not anticipating a recovery at all form key customers and nor was anyone else.
They are doing the right things to get their own house in order for when the world economy improves and with current geo-political issues now taking lead over economic woes it is no surprise companies are reducing staff and looking at cost savings
To use the word platitude and negative towards them I think is somewhat misplaced given the challenging EXTERNAL issues everyone is having to deal with
Is it there fault that the Chinese Government is delaying orders at the moment due to economic issues in China ?
SPIRENT COMMUNICATIONS CONFIDENT AFTER CHALLENGING 2023
(Sharecast News) - Spirent Communications said in an update on Tuesday that, despite facing a challenging year in the telecommunications sector, its 2023 full-year results aligned with its revised expectations.
The FTSE 250 company said revenue for the year closed at $474m, down from $607m in 2022.
It said it anticipated delivering an adjusted operating profit in line with market consensus.
To adapt to the challenging market dynamics in the telecommunications sector, Spirent said it was accelerating its focus on non-telecom segments, which were currently showing more positive trends.
They had seen promising growth in order intake for their Positioning business and from Hyperscalers.
Additionally, the company secured a significant deal with a world-leading financial services organisation, opening up a new end market for them.
Spirent said it was taking proactive steps to optimise its cost base while preserving its technology leadership.
It said it had implemented several key initiatives, including a merger of its high-speed ethernet business with lifecycle service assurance and a reduction in headcount by approximately 8%, all without compromising essential research and development product roadmaps.
Furthermore, the company said it was reducing its office footprint to reflect the changing post-Covid-19 working environment.
Those initiatives, expected to incur an exceptional restructuring cost of $15m, had already generated cost savings in 2023 and were projected to yield significant savings in 2024, which would offset cost inflation.
The expected payback period for the changes was less than two years.
In terms of its financial position, Spirent maintained a robust balance sheet with a cash position of $103m, supported by efficient working capital management.
It repurchased $72m worth of shares during the year, demonstrating disciplined investment practices.
Looking ahead, Spirent said it was optimistic about the new financial year, starting with a growing order book.
It said it was well-positioned to make strategic and operational progress, with growth opportunities in non-telecom end customer markets.
While continuing to invest in leading technology solutions across its portfolio, the company said it was ready to capitalise on market recoveries when they occurred.
"We are making good progress diversifying and expanding our customer base whilst our telco end market key customers are managing their own challenges driven by the macroeconomic environment," said chief executive officer Eric Updyke.
"Whilst we cannot predict the duration of the current market challenges, we remain confident in our mid-term targets with the long-term structural growth drivers for our business continuing to be compelling, including the evolution of global 5G infrastructure and further development of ORAN, leveraging our market-leading solutions."
Updyke also said
Nice upbeat statement, i'll take it👍🇬🇧
Not exactly upbeat but the market has reacted well.
Well received, cash on the balance sheet, adapting to changing times. Happy to hold long term, winner!
All businesses are closing offices as a result of the flawed lockdowns
I was not expecting this update till Friday. They are re-affirming the profit range they gave previously and still have cash in the balance sheet but, as I see it, the rest is rather downbeat. Reduced staff and office space (contraction), focusing on non-telco end markets, merging their High-Speed Ethernet business with Lifecycle Service Assurance. These sound defensive to me and the previously anticipated recovery in their core business is no longer mentioned. Instead " We are well positioned to deliver strategic and operational progress..." "Whilst we cannot predict the duration of the current market challenges, we remain confident in our mid-term targets with the long-term structural growth drivers for our business continuing to be compelling" If I had had a pound for every time I read this sort of platitude in a corporate statements I could buy Saville Row suit.
They will survive but not with me as a shareholder
Is that an educated guess Mary….?
Sneaking up on the rails - ssssshhhhhussssh - easy does it.
Seems a report of some delayed orders have now been inked.
Https://www.cityam.com/private-equity-firms-line-up-london-lawyers-ahead-of-deals-frenzy/
I bought on the huge dip, waiting (-;
This will be fine once again - a Phoenix
Bought today. Hoping for a sustained rise from here and could easily see a takeover in near future ....
(Sharecast News) - Canaccord Genuity has reiterated its 'buy' ratings on Spirent and Calnex, saying the announcement by AT&T to commit $14bn to accelerate OpenRAN in the US "should rub off positively" on the UK-listed tech firms.
US telco giant AT&T announced on Monday that it is planning to build an OpenRAN-capable 5G radio network, with Ericsson as its lead vendor, over the next five years. OpenRAN enables mobile network operators to "use equipment from multiple vendors for individual network radio access network (RAN) components and still ensure interoperability compared to typically single- or dual-sourced 'standard' radio access networks," Canaccord analysts explained.
AT&T said it should have fully integrated OpenRAN sites starting in 2024 and ramp up deployments from 2025, moving away from "closed proprietary interfaces...enabling rapid scaling and management of mixed supplier hardware at each cell site."
It expects that 70% of its wireless network traffic will flow across its OpenRAN-capable network by late-2026.
"In our recent note, we highlighted OpenRAN as one of the technology drivers that could help boost demand for network test solutions over the next few years. However, so far the technology has only seen modest global adoption, but this commitment by AT&T could accelerate industry-wide momentum," Canaccord said.
"To deploy OpenRAN, telcos typically need a lot more testing capability in order to ensure and monitor interoperability of the individual network components."
AT&T is estimated to be Spirent's largest single customer, accounting for up to 10% of sales, while the news could also support demand for Calnex's SNE-Ignite OpenRAN emulation platform, Canaccord said.
"Overall, we view AT&T's announcement as an industry positive that should add incremental impulses to a still tough telco spending environment and improve visibility on our 2024+ demand recovery thesis."
Despite the news, Spirent's share price was down 0.5% in morning trade, while Calnex was flat.
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Today 09:33Sharecast News
Numis hikes Spirent Communications target price, upgrades to 'buy'
(Sharecast News) - Numis hiked its price target on Spirent Communications on Tuesday to 155p from 95p on the back of upgraded forecasts.
Read more
29 Nov 2023 16:40Sharecast News
London close: Stocks mixed as US GDP growth tops forecasts
(Sharecast News) - London markets closed with a mixed performance on Wednesday, influenced by a combination of UK data releases and robust economic growth in the US.
Read more
29 Nov 2023 09:31Alliance News
IN BRIEF: Spirent Communications wins USD15 million contract with bank
Spirent Communications PLC - Crawley, England-based automated test and assurance software and services for devices and networks - Confirms signature of USD15 million contract with a "world leading retail and investment bank" to automate the unnamed financial firm's lab a
Sharecast News) - Numis hiked its price target on Spirent Communications on Tuesday to 155p from 95p on the back of upgraded forecasts.
"This is +39% versus the stock's last closing price, so we also up our rating from hold to buy," it said.
Numis said it thinks Spirent expects trading in the telco sector - which makes up around 70% of its business - to be no better or worse in FY24. Its prospects remain strong when telcos can no longer continue to sweat their assets, or some break rank to gain share, it noted.
"So SPT is urgently pivoting to non-telco sectors for sales growth and managing costs carefully, in part by fundamentally streamlining itself, without cutting any of the R&D that serves its future," it said.
At 1030 GMT, the shares were up 2.8% at 114.60p.
Well that was a damp squid.... up to 115, just to fall back 10p on nothing.
Sounds like a smart move.
https://thebusinessmagazine.co.uk/corporate-finance/spirent-communications-announces-series-of-strategic-business-moves/
Agreed Kilman
If you want to know when share buy backs are appropriate and in the shareholders interests , take a look at AA4, Airbus leasing company , majority of their leases expire in 3 years , hence finite income with illiquid asset at termination ,..The board keep making compulsory buy backs at 50% premium to current share price .
In other words AA4 is a shrinking company and its trying to maximise value for its shareholders before company contracts terminate
Of course Emirates need A380's air craft beyond expiry of lease , so any extensions will be a bumper bonus for current shareholders ..this isn't a ramp up for AA4 shares more a demonstration of when share buy backs are a good idea
Spirent on the other hand are a growing company ..they might have to take on debt to grow further, then the folly of the buyback will be exposed .
Good Luck and DYOR..
This was mentioned in July update so yeas good to see it confirmed, represents 5% of their order book!
We have seen good order growth from our Positioning business, illustrating how end markets outside of the telecommunications sector have not been as materially affected by the industry wide challenges that have impacted customer spending. We are diversifying our customer base into new verticals and are currently in final negotiations to provide a significant lab and test assurance and services solution, worth over $15 million, with a major retail bank. This will establish a brand new customer segment that presents a significant opportunity for our solutions in a sizeable market. A material element of the contract will translate into revenue in the second half of 2023.
Only way is up.