Half Year Results 

Flat revenue, but operating margin up at Spirent

Flat revenue, but operating margin up at Spirent

Spirent’s (SPT) share price fell on release of a mixed half-year report. While revenue was flat, cost management took the operating margin up from 1.5 per cent to 5.3 per cent. The networks and security division comprises 59 per cent of Spirent’s top line, and generated good sales growth of 11 per cent to $126m (£96.7m). Lifecycle service assurance saw sales fall 13 per cent, although management expects order intake to be second-half weighted. Connected devices suffered from waning smartphone testing, and chief executive Eric Hutchinson says: the future for this division depends on when there is more spending on 5G wireless solutions. That said, Mr Hutchinson is clear that Spirent is “sticking to our strategic focus”.

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