Spirent Communications Sees Q3 Revenues Slightly Below $110 Mln - Quick Facts

(RTTNews) - Spirent Communications Plc (SPT.L, SPMYY.PK) said it expects revenues for the third quarter to be slightly below $110.0 million, compared with $107.7 million last year. While trading conditions softened in the latter part of the third quarter in the U.S. and China, demand levels fell sharply due to merger activity and delays in capital expenditure as future new technology deployments are being assessed in areas in which Spirent has increased its investments, the company noted. The reduction in activity levels has mainly impacted the Networks and Applications business.

The weakened market conditions affecting mainly Networks and Applications are expected to persist through the fourth quarter of 2014. The board currently estimates fourth-quarter revenue to be in the range of $120.0 million - $125.0 million, while operating profit would be impacted by the loss of gross profit on lower revenue than expected.