Spirent Communications confirmed its 2022 outlook on Friday, citing robust order growth in the first quarter in its first-quarter trading update.
Spirent reported “good” revenue growth and an expanding order book, with a book-to-bill ratio of 112 for the quarter, up from 104 in 2021 due to progress made by the group in attempts to improve sustainable long term growth.
Orders for testing, analytics, and security for telecommunications networks climbed 18% in the first quarter, according to the Spirent.
With its Hyperscalers division delivering 5G cloud network expansions and automation, Spirent secured “many large” 5G contracts as it developed technology and network deployments.
The company obtained a substantial order for 5G standalone core network assurance for a Tier 1 North American customer using VisionWorks, our live network assurance solution.
Spirent won a critical 5G core testing contract as part of a major UK government 5G effort, with more stages to come.
According to the report, services rose by double digits as Spirent focussed on supporting their customers with 5G cloud network expansions and automation.
With the debut of its 800G high-speed Ethernet test platform, as well as the industry’s greatest port density 400G solution, Spirent continues to exhibit leadership in high-speed Ethernet and security solutions.
During this time, the company boosted its market share by winning several key new logos.
The financial position is solid with a strong balance sheet for Spirent and cash closed at $215m, up from $175m in December 2021.
The previously announced final dividend of 3.3p, summing to $26m, will be paid on May 10th, pending shareholder approval at the Annual General Meeting on May 6th.
Spirent says its full-year outlook is unchanged as it strives to reduce inflationary pressures and an uncertain supply chain environment.
Eric Updyke, Chief Executive Officer, Spirent Communication said, “We are delighted to continue the momentum seen in 2021, starting the year so strongly and further expanding our orderbook, providing greater future visibility.”
“We continue to significantly broaden and deepen our customer base with our leading-edge solutions and the demand for our assurance solutions is robust, as market drivers for reliable communications, including 5G, remain a key global priority.
“We have developed a portfolio of offerings that have demonstrated strong mitigation of technical cyclicity as we focus on supporting our customers in the ever-growing area of network assurance, focusing on software solutions.
Spirent Communication shares have dropped 1.3% to 225p despite the group reporting good revenues and a strong orderbook for 2022.
