(Adds details, analyst comment, share movement)
April 23 British telecoms testing company
Spirent Communications Plc reported a 16 percent rise in
quarterly revenue as orders rose on the back of a
multi-billion-dollar roll-out of 4G networks in China.
Operating profit also rose as revenue climbed to $111.9
million in the first quarter ended March 31. Orders increased 12
Shares in Spirent, which tests ethernet networks and 3G and
4G wireless networks and devices for companies such as Cisco
Systems Inc and Nokia, rose as much as 7.9 percent
making it the top percentage gainer on the FTSE-250 Midcap Index
The company said orders in its second largest unit, wireless
and service experience, rose 6 percent due to strong growth in
Asia-Pacific on the back of the 4G roll-out.
China has become one of the most important markets for
Spirent's testing equipment as the world's second largest
economy issued 4G licences at the end of last year to its three
Huawei Technology Co and China Mobile
are among Spirent's clients in China, where spending on 4G LTE
networks is estimated by the Chinese government to reach $16
billion this year.
Spirent, said market conditions have improved in all regions
from last year.
Last year, Spirent reported a 64 percent fall in profit due
to contract delays from major equipment makers in the United
States, traditionally its largest market.
The company has since restructured and appointed new
"While the order book appears to have stabilised, the
business remains in turnaround and pricing challenges remain,"
Jefferies analyst Lee Simpson said in a note to clients.
Shares in the Crawley, West Sussex-based company hit a high
of 104.2 pence before slipping back a little to 103.1 pence at
(Reporting by Noor Zainab Hussain and Tasim Zahid in Bangalore;
Editing by Rodney Joyce)