Surging demand for high-speed wireless internet should be great for Spirent (SPT), which tests devices and equipment for carriers and network suppliers. Should, but wasn't in the first half: tepid trading and mounting costs drove adjusted operating profit down 71 per cent. Management also warned that full-year earnings would be well below forecasts. The group's shares slid 14 per cent on what amounted to a severe profit warning.
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Spirent's selling and distribution costs leapt 19 per cent as acquisitions lifted overheads and the group embarked on sales and marketing drives to support new products. Total operating costs equated to 63 per cent of revenue - up from 45 per cent in 2009.