* Sees revenue improving in second half
* First-half pretax profit drops 64 pct
* Revenue falls 6 pct
* Shares rise as much as 6.6 pct
By Abhirup Roy
Dec 9 Anite Plc said it expected an
improvement in its core handset-testing business to boost
revenue in the second half, after contract delays pushed down
profit by more than half in the first six months.
Shares in Anite rose as much as 6.6 percent on Monday on the
London Stock Exchange.
The company's profit before tax fell 64 percent to 5.1
million pounds ($8.3 million) in the six months ended Oct. 31.
Revenue declined 6 percent to 57.5 million pounds.
Revenue from Anite's handset-testing business dropped 21
percent. The company had forecast a 25 percent fall in October.
The business, which counts Samsung Electronics,
Motorola and Vodafone among its clients, contributes
about 55 percent to Anite's total revenue.
"We do feel that all the underlying growth drivers for the
business are still in place," Chief Executive Christopher
"We are hoping to resume normal service once we get through
this second-half period."
The company, which provides handset-testing systems to
wireless companies and reservation software to the travel
industry, had blamed consolidation in the technology industry
for the contract delays, adding that it would hurt full-year
Anite shares have dropped 20 percent since the October
Despite better-than-expected results, the company's shares
are unlikely to recover much, Panmure Gordon analyst George
O'Connor told Reuters.
"All (Anite's results) did is help to reconcile people to
the view that the market is volatile and that there is lack of
general visibility in the end-market."
Shares in peer Spirent Communications also rose 1.5
percent, which analysts attributed to Anite's results.
Spirent warned in October that fourth-quarter revenue would
be $12 million lower than it had estimated as customers were
delaying taking delivery of its products.
For the past few years, Anite's handset-testing unit has
been riding on strong demand for long-term evolution (LTE) 4G
products, getting over 50 percent of its revenue from this
Carriers and wireless companies are increasingly investing
in the next generation mobile technology, with 4G roll-outs
expected to gain momentum globally over the next few years.
GSMA, the association that represents the interests of
mobile operators worldwide, said last month that the number of
4G connections worldwide is forecast to top one billion by 2017.
Analysts expect developments in China's telecom industry to
boost Anite's growth.
China awarded 4G licences last week to Anite's partner China
Mobile Ltd and to China Unicom Hong Kong Ltd
and China Telecom Corp Ltd.
This has got to be the best single opportunity and the
fastest-moving market for 4G in the world right now, Humphrey
Anite's revenue from network testing grew 34 percent to 15.6
million pounds in the first half, while revenue from its travel
business rose 13 percent to 10.1 million pounds.
Shares in Anite were up 5 percent at 90.85 pence at 1102