Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Profits Slide 70% at Spirent Communications

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- The shares of Spirent  (LSE: SPT  ) declined 1% to 129 pence during early London trade this morning after the FTSE 250 mid-cap revealed first-quarter profits had plunged 70% to $7.6 million.

Spirent, which provides performance-testing services for the telecoms industry, confirmed revenues had slumped 18% to $97 million. The company blamed the decline on "challenging trading conditions" and a smaller order book at the start of the year.

Spirent said it expected revenues for the second quarter and full-year 2013 to be roughly the same as last year. The company maintained it would increase investment by as much as $14 million during 2013, to exploit opportunities in new technologies such as 4G and cyber security.

Chief executive Bill Burns commented:

Trading during the first quarter was more challenging than anticipated, yet the fundamental drivers of Spirent's business remain positive as investment in the telecom and IT industries will continue to be made on a large scale.

Market conditions are likely to constrain growth prospects in the short term, however in order to underpin Spirent's longer term strategy and future growth we will continue to increase the level of investment in new product development in order to bring new solutions to market that will offer our customers the capability they demand.

With a market cap of 850 million pounds, Spirent's shares trade at 16 times expected earnings and offer a prospective dividend yield of 1.7%.

Of course, whether that valuation, today's results, and the future prospects for the telecoms industry all combine to make the shares of Spirent a buy remains your decision.

However, if you're looking for a higher-yielding investment opportunity, you may want to look at "The Motley Fool's Top Income Stock For 2013."

In fact, the Fool's choice recently revealed its dividend would increase "at least in line with the rate of U.K. inflation for the foreseeable future," and provides a market-beating 5.1% yield.

Just click here to download the free exclusive report!

Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2400533, ~/Articles/ArticleHandler.aspx, 10/21/2016 8:02:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 7:05 AM
SPT $83.25 Up +1.00 +1.22%
Spirent Communicat… CAPS Rating: No stars