Spirent Communications' Q1 trading hit by slowdown in the market

FTSE 250-listed communications group Spirent Communications has reported that the slowdown in the market was more pronounced than expected during the first quarter of 2013.

In a trading update covering the period from January 1st to March 31st, the group said that all major regions saw "a reduction in demand" which was consistent with its customers' reduction in capital expenditure.

"Customers delayed projects as their plans have been slow to be released for the year, and certain large accounts have not repeated the high level of spending seen in the corresponding period in 2012," the group reported.

As a result, Spirent Communications said that revenue fell by $20.6m to $96.8m for the first quarter, with operating profit impacted by the loss of gross profit on this lower revenue.

It said that the prospects for the second quarter would be expected to achieve similar revenue to that of the same period last year.

MF