News

Spirent Communications Faces Revenue Drop and Adjusts Full-Year Outlook

4.6

Andrew R. Michaud

October 04, 2023

Spirent Communications, a prominent UK telecommunications testing company, has announced a decrease in revenue along with a revised full-year forecast. The decline in revenue is attributed to delays in investment plans, negatively impacting the timing of order placements and creating uncertainty in growth prospects.

For the nine months ending on September 30, revenue fell by 20%, consistent with the reduction observed in the first half of the year. Spirent Communications expects this downward trend to persist for the remainder of the financial year.

Furthermore, order intake witnessed a significant decline of 24% compared to the same period last year due to the postponement of order placements.

To address these challenges, the company has completed its $72 million share buyback program and subsequently cancelled 33 million shares.

CEO Eric Updyke commented on the situation, stating, "While our long-term growth drivers remain intact, the current state of our order book does not provide sufficient support for our final quarter expectations. As a result, we have adjusted our outlook for the full year accordingly. We are taking necessary cost-cutting measures while carefully safeguarding investments that contribute to our long-term structural growth drivers."

Although the company has not disclosed a specific figure for its revised outlook, it is actively strategizing ways to navigate through this phase of uncertainty.