Spirent reports higher profits

Telecoms test equipment supplier Spirent Communications says trading has started positively in 2010 and the company is on course to achieve expectations for this year. Revenues increased 5% to $107.9m in the first quarter of 2010 but it fell 3% in sterling terms to £69.5m. The rate of growth in operating profit was also slower in sterling but it still rose by one-fifth to £11.5m. A higher tax charge due to lack of available tax losses meant that earnings per share fell by 6% to 1.34p. Operations generated £16.5m in cash during the first quarter, which helped cash balances increase to £127.1m. Demand from the fixed-line sector is weak but mobile demand is stronger. Order intake, in dollar terms, rose 12% and the order book has held steady. The figures were slightly below Daniel Stewart estimates but it is sticking with its forecast of a rise in full year profits from £55.5m to £69.1m.