Spirent's recovery continues
Communications technology group Spirent’s recovery continued in the first quarter of 2008 as the company’s operating profit moved into positive territory.
Operating profit in the first quarter was £9.6m, versus an operating loss of £0.6m in the first quarter of last year, with the gross profit margin improving as a result of the restructuring undertaken in 2007.
Revenue rose to £59.9m in the first quarter from £54.4m. Orders in April have been “satisfactory” and the company continues to budget for mid-single digit sales growth in 2008 based on its “substantial order book”.
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The Systems division suffered a slide in revenues due to adverse exchange rate translation effects and lower volumes, but profitability was maintained through tight control of costs. The company said sales volumes recovered in April.
The Service Assurance division saw 2% revenue growth in US dollar terms and an improved operating profit performance, driven by a higher proportion of software revenue as well as reduced overheads.
“Spirent has continued to benefit from last year's operational restructuring and April orders have given an encouraging start to the second quarter,” said Spirent’s chairman, Edward Bramson. “We are also making good progress in new product development to address the opportunities created for us by continual evolution in broadband and wireless technologies,” Bramson added.
