* Adjusted revenue falls 3.4 pct
* Current trading ahead of last year in the first two months
* This year to be a year of recovery, says CEO
* Plans bolt-on acquisitions this year
(Adds CEO and analyst comments, outlook, share movement)
By Noor Zainab Hussain
July 2 Anite Plc, which tests handset
and telecom networks, said adjusted full-year pretax profit
nearly halved, hurt by weak revenue at its core handset-testing
business, but expected profitability to rebound this year.
Shares in the Fleet, Hampshire-based company, which fell as
much as 8 percent in early Wednesday trading, recouped most of
the losses and were down 1.6 percent at 92.34 pence at 0852 GMT.
"Two months in, we are trading ahead of last year, we expect
profitability to rebound," Chief Executive Chris Humphrey told
The current year is expected to be a recovery period,
Anite, whose clients include Samsung Electronics Co Ltd
and Vodafone Group Plc, said adjusted pretax
profit fell to 14.9 million pounds ($25.3 million) for the year
ended April 30, from 29.5 million pounds a year earlier.
Adjusted revenue fell 3.4 percent to 109.2 million
Revenue from Anite's handset-testing business fell 11
percent to 77.3 million pounds, with a 9 percent fall in orders.
First-half revenue in the division organically fell 33
percent, hurt by corporate activity such as Microsoft
buying Nokia, Broadcom buying assets from
Renesas and challenges experienced by Blackberry, the
"Everything goes on hold when there is consolidation ... In
our second quarter, the news flow literally hit us in about two
or three weeks. That caused (the revenue hit) combined with a
lack of what we would call technology revenue catalysts. The
sales growth is driven by changes in technology," Humphrey said.
Anite's network testing business saw a 22 percent jump in
revenue to 31.9 million.
The multi-billion-dollar rollout of long-term evolution
(LTE) 4G networks in China has helped boost revenues for
telecoms testing companies, such as Spirent Communications Plc
China Mobile is busy expanding its 4G network coverage to
over 340 cities with 500,000 base stations across the country,
with 6.5 million subscribers since the December 2013 launch,
Jefferies said in a note to clients.
Anite's adjusted results are for continuing operations,
excluding its travel reservation software business, which it
sold to the private-equity arm of Lloyds Banking Group Plc
for 45 million pounds in May.
For the current year, Anite expects profit on disposal of
its travel division to be about 30 million pounds, subject to
the release of the 1.7 million pounds held in escrow and working
The business accounted for about 15 percent of Anite's total
revenue of 132.5 million pounds in 2013.
The company is keen to make bolt-on acquisitions this year,
the biggest of which will be about the same size as Anite's
purchase of the Propsim Channel Emulator product line in January
2013, the CEO said.
($1 = 0.5877 British Pounds)
(Reporting by Noor Zainab Hussain in Bangalore; Editing by