RE: Encouraging H1 results28 Nov 2022 10:19
New interview with TC - some interesting excerpts in addition to the reportage on the encouraging interim numbers and outlook:
Https://www.heraldscotland.com/business_hq/23143056.linlithgow-based-calnex-defies-supply-chain-woe-lift-profits/
"Calnex completed the acquisition of Stevenage-based iTrinegy, a developer of software-designed test networks, for £3.5 million during the first half. Mr Cook said the integration was progressing well with new contracts signed with “channel partners” in the US, currently the market offering the earliest potential for the services it provides. And he said additions had already been made to the iTrinegy team in Stevenage, including in business development roles to support the sales drive."
"Asked whether Calnex was keen to make further acquisitions, Mr Cook replied: “There are not hundreds of companies out there that we can acquire. We continually look – we never really stop looking, because it is always about getting the right company with the right culture and the right product that fits in.
“We are continually in discussion with other companies to see whether there are other acquisitions we should be considering that would expand our sales footprint.”
Mr Cook has previously outlined the opportunity to win business serving the huge data centres that are developed by “hyper-scaled” technology companies such as Amazon and Meta, owner of Facebook. Mr Cook said that opportunity is still there for Calnex, despite the well-documented slowdown at several tech giants that is currently leading to tens of thousands of redundancies across the world.
“As far as we can see, the infrastructure teams, which are the ones we are selling into, don’t seem to be particularly badly affected by it,” he said. “I think it would be folly to assume that we can be immune from the macro issues in the world… I don’t think it fundamentally damages anything medium and long term. In the short term, we will need to wait and see and keep a close eye on that. So far it really hasn’t changed.”
He added that the fact such companies were looking to drive efficiency at data centres could stand to benefit Calnex."
"Broker Cenkos said in a note for investors: “The growing datacentre opportunity for Calnex and the enduring transition towards 5G continues to drive requirements for its test instrumentation and network validation solutions. Calnex’s order book was very strong going into H2/23 and the order backlog is starting to unwind (easing of supply chain issues), providing confidence in current expectations for the year. We have left forecasts unchanged.”
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