Spirent Communications sees second half volatility

Communications technology firm Spirent Communications said first half pre-tax profit rose slightly but cautioned that overall growth in the second half may reduce to mid to low single digit increase amid ongoing macro-economic uncertainty.

Pre-tax profit rose to $57.3m for the six months ended July 1 from $55.8m a year earlier. Adjusted group operating profit was up 9% to $63m.

Group revenue rose 1% to $262.1m after a weak performance from Service Assurance, which saw revenue fall 46% while Systems declined 15%.

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In a company statement Spirent said: "The fundamental demand for mobile and data communications remains strong. While we saw growth during the first half-year in Asia Pacific and the United States, as we look at the remainder of 2012 we anticipate that macro-economic uncertainty will cause volatility,"

The group added that its fundamental market growth drivers remain in place, despite short-term macro-economic uncertainty.

Chief Executive Officer Bill Burns added: "Spirent made further progress in the first six months of 2012, delivering growth in revenue, profit, earnings per share and cash generation. We also took steps to expand the business in line with our strategic vision, including the successful integration of Mu Dynamics into Performance Analysis."

The interim dividend has been increased by 10% in line with earnings to 1.39 cents per share.

Free cash flow rose to $50.4m compared to $17.1m in the first half of 2011. Cash balance at the period end was $234.7m compared to $236.5m before.

CJ