Spirent to incur $4m exceptional cost; sees earnings second-half weighted
StockMarketWire.com - Telecom technology testing and analytics company Spirent Communications said it expected incur a one off $4m cost associated with hiring new managers and developing its sales and marketing capabilities.
In a third-quarter trading update, the company also said that it expected its revenue and earnings performance to again be weighted to the second half of the year.
'Our expectations for the full year remain unchanged,' chief executive Eric Updyke said.
The company said it had continued to see 'healthy' order intake growth, in line with that seen in the first half.
Following Updyke's appointment on 1 May, the company had focused on recurring revenue streams and strengthened its leadership team, with a number of new managers having already joined the organisation.
Spirent Communications said it had also developed its sales and marketing structure 'to drive improved effectiveness to exploit our leading technologies'.
It added: 'The one-off exceptional cost of these planned changes is circa $4m with the large majority of this cost expected to be incurred in this financial year.'
In the networks and security division, order intake and revenue in the third quarter showed 'robust' growth on-year, though in the lifecycle assurance division the company said it experienced some delays in order intake.
'We do still expect orders to show good growth in the full year compared to 2018,' it added.
'A new general manager with deep experience of the service assurance market was appointed to lead this segment in the quarter.'
In connected devices, the company said it remained on track to meet the planned demand for 5G device testing, with increasing interest from its customer base and a new solution set for delivery in 2020.
'Our business has maintained a good level of traction with our customers and overall we delivered a solid third quarter,' Updyke said.
'We saw the benefit of the diversity of our portfolio as increased demand for our Positioning products offset some short-term lumpiness in order placement in other areas.'
Story provided by StockMarketWire.com