Spirent Communications profit falls on weak telecom spending
Feb 28 (Reuters) - Telecoms testing company Spirent Communications Plc reported a 3 percent drop in full-year profit as clients in North America, its biggest market, cut spending.
The FTSE 250 company, which tests ethernet networks and 3G and 4G wireless networks and devices, forecast modest full-year revenue growth, saying it does not expect spending to pick up in the first half of 2013.
Pretax profit declined to $110.7 million in 2012 from $114.3 million a year earlier.
Revenue rose less than 1 percent to $472.4 million.
Sales in the company's service assurance business, which provides tests to monitor and diagnose telecom network issues, declined 29 percent to $38.4 million as service providers cut capital spending.
Spirent has been hit particularly hard by a decline in capital expenditure by clients in the United States, which contributed 51 percent of the company's 2012 revenue.
Sales at the company's core performance analyis division, which tests current and next-generation mobile phones, rose 4 percent to $434 million on stronger demand for its 4G wireless device and data center tests.
Shares in the company closed at 165.8 pence on the London Stock Exchange on Wednesday.