Spirent Communications Q3 Profit Dips; Warns On Rest Of Year Market Conditions

(RTTNews) - Spirent Communications Plc. ( SPT.L, SPM), a communications technology company, reported Thursday that its third-quarter pre-tax profit plunged to $2.8 million from $13.2 million last year.

Profit for the period attributable to owners of the parent company was $2 million or $0.32 per share, compared to prior year's $9.7 million or $1.50 per share.

Adjusted operating profit was $9.1 million, down from $16.1 million a year ago, impacted by increased organic investment in product development and in sales and marketing.

Group revenue increased to $110.1 million from $107.7 million last year, including the contribution from acquisitions. Organically, revenue was down 3 percent.

As reported earlier, the level of demand for products and services dipped sharply during the third quarter in the United States and in China.

Regarding the current trading, the company said it expects that the weaker market conditions will continue during the rest of 2014.

"Our forecast revenue for the fourth quarter remains in the range of $120 million to $125 million. The Company is reviewing its cost structure to align costs with changes in the market while protecting the execution of its strategic plan," the company said in its statement.