Drivers Spirent Communications Plc

StockMarketWire.com - Device testing and analytics group Spirent Communications said its annual revenue rose 4%, helping it to achieve a 'strong' rise in earnings in line with its expectations.
Revenue for the year through December had increased to $522 million, while the company's adjusted operating margins had expanded to almost 20%, from 18% in 2019. 'We delivered good momentum in the final quarter of 2020, despite continued global challenges to manage through this difficult Covid-19 period,' Spirent Communications said.
'We secured a number of key contract wins across the portfolio, serving as important proof points that our strategy is working.'
'Our customers continue to invest in 5G-related infrastructure, devices and services, a trend we expect to continue.'
Spirent Communications said it would review its cash position and, if it determines it had excess cash, would look to return it to shareholders.
Cash at the end of December was $241 million.
'We delivered another year of revenue and earnings growth and, although we experienced some softness in the latter half of the year due to timing of expenditure by global service providers, the 5G-driven momentum in our lifecycle service assurance business continues to be strong,' chief executive Eric Updyke said.
'Supported by a strong financial and operational platform, we begin the new financial year well placed, with our main drivers intact and with leading technology solutions across our portfolio.'
'However, the ongoing Covid-19 impact on customer spending patterns remains a headwind and as a result we expect growth to be second half weighted.'
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