Calnex Solutio. Share News (CLX)

(Sharecast News) - Telecommunications test and measurement technology company Calnex Solutions said in an update on Wednesday that it had made "solid progress" against its strategy in the first few months of the new financial year.

The AIM-traded firm, which was holding its annual general meeting, said it was confident that its performance in the 2023 financial year would be in line with market expectations.

It said it was still experiencing high demand for its test and measurement products, benefiting from supportive market trends with the transition to 5G and growth in cloud computing, as the order book remained "strong".

"As previously reported, the company continues to successfully mitigate the impact of the global semiconductor shortage on its ability to manufacture and ship products, in conjunction with its partners," the board said in its statement.

"As with the prior year, this may cause monthly revenue to fluctuate, and the board expects there will be a second-half weighting to the group's trading performance.

"The expansion into adjacent markets, including data centres, represents an exciting new opportunity for Calnex."

Calnex said it was continuing to build relationships in those verticals, adding that following the acquisition of iTrinegy in April, the integration was progressing as planned.

"Calnex has recently renewed its multi-year contract with long-established partner Spirent Communications.

"This is the third renewal since the relationship was established in 2013, demonstrating the continued mutual commitment to growing the relationship for the success of both parties.

"Despite wider global issues, the company's positive trading performance and the supportive trends within the telecoms sector provide the board with confidence in its ability to deliver on its growth strategy this year and beyond."

At 1439 BST, shares in Calnex Solutions were down 2.89% at 156.34p.

Reporting by Josh White at Sharecast.com.