Spirent Communications quarterly revenue up amid impending takeover

(Alliance News) - Spirent Communications PLC on Wednesday said third-quarter performance has shown year-on-year improvement, despite continued "customer hesitancy" amid takeover negotiations.

The Crawley, England-based provider of testing and assurance services said revenue in its third quarter that ended September 30 grew 5% year-on-year, resulting in an "improved performance" from its first half.

The company said revenue for the nine months that ended September 30 fell 6% from last year, though this was also an "improved performance".

"Looking forward, our confidence in 5G as an enduring growth driver remains intact as demand-side drivers increase", the company said. Its upcoming multi-year launches of 5G Standalone, its evolution to its 5G Advanced product, and its associated Digital Transformation programmes currently represent opportunities for long-term growth.

Spirent in March agreed to a GBP1.16 billion takeover by Keysight Technologies Inc, a Santa Rosa, California-based manufacturer of electronics test and measurement equipment and software.

On Wednesday, Spirent said it was continuing to work with Keysight and the relevant authorities to satisfy the regulatory conditions for the transaction, and expects the sale to complete in the first half of Keysight's financial year due to end April 30, 2025.

Spirent has been flagging "customer hesitancy" due to the takeover since July.

Chief Executive Officer Eric Updyke said: "We saw positive trading momentum in the third quarter and will carefully monitor how this develops in coming months. We have continued to protect our research & development investments in key technologies, which we expect to drive our long-term structural growth when customers spending improves.

"Spirent will continue to benefit from these industry drivers as our customers demand more rigorous end-to-end assurance and testing solutions to deliver faster, more resilient, more reliable networks. Our leadership position and differentiated, high-quality operating model leaves us well-placed to leverage market opportunities as they open up."

Shares in Spirent Communications were up 2.6% at 172.90 pence each in London on Wednesday morning.

By Emily Parsons, Alliance News reporter

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