Spirent lifts 2019 profit guidance after strong Q4
Telecoms company Spirent Communications increased its full year profit guidance as customers continued to invest in 5G infrastructure.
Spirent said it now expected to report an adjusted operating profit in the range of $91m - $93m for the 2019 fiscal year, up from $77.1m last year. Revenue rose by 5.5% to $503m.
“Good momentum continued into the final quarter of 2019, with the group securing a number of important contract wins. Our customers continue to invest in 5G related infrastructure and solutions, a trend we expect to continue,” Spirent said on Monday.
“In particular, we benefited from strong growth from our networks & security operating segment driven by increasing demand for 400G high-speed Ethernet test solutions and the positive momentum for our positioning products continued throughout 2019.”
The company reported strong order growth for its lifecycle service assurance products in the last quarter; however, delivery timing was largely for 2020, resulting in broadly flat revenue for 2019.
Despite a fall in revenue driven by increased 4G legacy decline, Spirent's its connected devices unit still delivered a solid operating profit.
The company finished the year with $183m in cash.
Eric Updyke, CEO, said: "We expect to exceed the market's profit expectations for the financial year 2019. We enter the new financial year with a strong orderbook. Over the medium term we expect to continue to deliver mid-single digit revenue growth with a focus on increasing recurring revenue streams."