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UPDATE 1-Acquisitions, new orders boost Spirent first-half revenue
July 31, 2014 / 10:41 AM / 3 years ago

UPDATE 1-Acquisitions, new orders boost Spirent first-half revenue

(Adds CEO comment, share movement, details)

By Noor Zainab Hussain

July 31 (Reuters) - Spirent Communications Plc reported a 16 percent rise in half-year revenue, boosted by acquisitions and more orders for its network testing services.

The company, which tests wireless networks and devices for customers such as Cisco Systems Inc and Nokia, said it expects to make more acquisitions in the second half to supplement its organic revenue growth target for the year of more than 9 percent.

Spirent is in talks with a few companies and some deals are expected to be finalised in the second half of the year, Chief Executive Eric Hutchinson told Reuters on Thursday.

The company spent more than $39 million this year on acquisitions, including the purchase of DAX Technologies Corp for about $37 million.

It is looking at deals of similar sizes in the second half, Hutchinson added.

First-half revenue rose to $221 million from $190.4 million a year earlier, with acquisitions adding $4.1 million.

Demand for Spirent’s wireless test systems is getting a fillip from extensive investment in voice over long term evolution (VoLTE) technology, or 4G as it is commonly known, in the United States.

Spirent has sold more VoLTE test solutions in the first half than the whole of last year, Hutchinson said.

Most of the growth in the near term would be driven by the global rollout of 4G, he said.

The CEO said Spirent was not affected by Microsoft Corp’s acquisition of Nokia’s handset business and that it continued to supply to Nokia Networks.

Spirent shares lost early gains and were trading down 0.6 percent at 101.4 pence at 1036 GMT on the London Stock Exchange. (Editing by Robin Paxton and Gopakumar Warrier)

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