(Alliance News) - Spirent Communications PLC on Wednesday said revenue fell in the first quarter of 2024, although it pointed to continued efforts in building an active pipeline.
In the quarter ended March 31, the Crawley, England-based test and assurance solutions provider said revenue was in line with the management plan, but "modestly behind" the first quarter of 2023.
"Previously taken cost saving actions have continued to favourably impact our performance," the company said.
"Market conditions remain challenging, with market drivers in line with the previous 12 months. We have continued to engage closely with our customers, understanding their needs and potential challenges to deliver the right solutions for them."
Looking ahead, Spirent said its expectations for the full year remain unchanged, while it continues to build an active pipeline for automation and assurance solutions with the financial services sector.
It noted "important" wins in the period including "a competitive benchmarking solution win with an [unnamed] US Tier 1 service provider" and "an important open [radio access network] order with a hyperscaler customer".
Spirent said it continues to maintain a strong balance sheet, with cash at March 31 standing at USD135 million, "demonstrating continued effective cash management". At December 31, cash stood at USD108.1 million.
Shares in Spirent were down 0.8% to 193.14 pence each in London on Wednesday morning.
At the end of March, Spirent said it agreed to a takeover by Keysight Technologies Inc, weeks after it recommended a takeover by Viavi Solutions Inc.
Spirent said it agreed to a GBP1.16 billion takeover from the Santa Rosa, California-based manufacturer of electronics test and measurement equipment and software.
Spirent said the offer by Keysight was superior to the existing GBP1.01 billion bid by Viavi, a Chandler, Arizona-based manufacturer of testing and monitoring equipment for networks. Spirent had recommended the takeover by Viavi on March 5.
The latest offer values Spirent at 201.5 pence per share, 199.0p in cash and 2.5p in a special dividend. Viavi's all-cash offer was for 175 pence per share, comprising 172.5p cash and a 2.5p special dividend.
By Greg Rosenvinge, Alliance News senior reporter
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Spirent (SPT)