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(Alliance News) - Spirent Communications PLC on Monday said it expects profit for 2020 to be in line with market expectations on good momentum in the final quarter despite Covid-19 related challenges.
The Crawley, England-based company is a provider of testing, analytics and security for telecommunications networks.
Spirent said that revenue for the year grew 3.7% to USD522 million from GBP503.6 million. It added it expects an adjusted operating profit in line with market consensus of USD101.5 million, which would be up from USD92.9 million in 2019.
Spirent also expects a stronger adjusted operating margin of "almost" 20% from 18% in 2019.
It noted its performance was aided by strong growth from its Lifecycle Service Assurance business, with the growth driven by increased demand for both lab and live assurance solutions amid the roll-out of the 5G network. Strong demand for its new 5G device testing resulted in full year revenue growth for the Connected Devices unit slightly ahead of its expectations.
Spirent noted its Connected Devices business will be merged into its Lifecycle Service Assurance segment to provide comprehensive end-to-end lab and live solutions to customers. A new chief technology officer role will be created to ensure effectiveness in its technology investments across its portfolio.
Looking ahead Chief Executive Officer Eric Updyke said: "Supported by a strong financial and operational platform, we begin the new financial year well placed, with our main drivers intact and with leading technology solutions across our portfolio. However, the ongoing Covid-19 impact on customer spending patterns remains a headwind and as a result we expect growth to be second half weighted."
Full year results will be published on March 11.
The FTSE 250-listed shares in Spirent were trading 0.2% lower at 262.00 pence each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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