Volex shares down on Q3 growth slowdown

Shares in Volex dipped on news the electrical, digital and optical connections firm saw a slowdown in growth in the third quarter of the year ended April 1st 2012.

Revenue in the quarter was adversely impacted by reduced spend by telecoms operators in response to increased economic uncertainty, the company said, at $21.3m down 30% over last year ($30.2m).

Despite the disappoitment, the firm remains confident in its full year outlook: "The board remains confident that, on a normalised basis, trading will be in line with current market expectations for the twelve months to 1 April 2012. The board is confident that we will see continued revenue growth and margin progression in FY2013, aided by the investments made in the most recent quarter.

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"Trading in the third quarter of FY2012 remained solid against a backdrop of volatile and challenging macro-economic conditions, with revenue in line with the same period last year. Year-to-date revenue for the 9 months to December is 9% ahead of last year."

Revenue for the period was in line with the same period last year, at $125.1m.

The reported gross margin was 17.1%, 0.9% down on the same period the previous year as a result of $2.8m exceptional start-up costs on new product introductions. Excluding these costs, normalised gross margin in the quarter was 19.4%.

The share price fell 1.32% to 224p by 11:53.

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