Spirent Communications Q3 Revenue Rises; Sees Improved H2 Trading

(RTTNews) - Spirent Communications Plc (SPT.L, SPM), a provider of automated test and assurance solutions for devices and networks, on Wednesday reported that revenue growth in the third quarter was 5 percent, resulting in an improved performance since the first half.

Eric Updyke, Chief Executive Officer, said the firm saw positive trading momentum in the third quarter and will carefully monitor how this develops in coming months.

In its trading update for the nine-month period up to September 30, the company, which is in deal for a recommended cash offer from Keysight Technologies Inc., noted that challenging market conditions have continued but performance in the third quarter shows an uptick compared to last year.

Order intake gathered momentum with important wins for Lifecycle Service Assurance and High-Speed Ethernet Testing.

Looking ahead, Spirent said, "Although market conditions remain challenging and are expected to continue in the near term, the recent momentum may deliver an improved second half trading performance. Looking forward, our confidence in 5G as an enduring growth driver remains intact as demand-side drivers increase."

Regarding the takeover offer, Spirent said the companies are continuing to actively engage and work constructively with the relevant regulatory authorities in order to satisfy the regulatory conditions in relation to the deal.

Keysight and Spirent currently expect the Scheme of arrangement for the deal to become effective during the first half of Keysight's 2024/2025 fiscal year being the period up to April 30, 2025, as previously announced.