Telecom Test turnover at same level as 2000 organically.
Initial six months trading for our Network Monitoring division exceeded expectations.
Other groups’ performance impacted by the economic slowdown in North America.
New product development for future growth almost doubled from £26 million to £51 million.
Cash generated from operations compared to the first half of 2000 increased by 11 per cent to £54 million.
Exceptional provisions for excess stocks and doubtful debts of £15 million in Telecom Test.
Goodwill impairment recognised of £248 million on Zarak and Net-HOPPER.
Programme of cost savings underway to realise about £30 million annually, at a cost this year of £9 million.
Group performance in second half will be depressed by difficult market conditions.
Before goodwill amortisation of £46.7 million (2000 £9.1 million) and exceptional items of £265.9 million (2000 nil) (including goodwill impairment of £247.6 million)
Before goodwill amortisation and exceptional items as above and loss on disposal and closure of operations of £3.8 million (2000 £11.0 million)
Earnings and dividend per share have been restated for June 2000 to reflect the rights issue
Commenting on the results, Nicholas Brookes, chief executive, said:
Against a background of deteriorating market conditions, the performance of Spirent in the first six months of the year was creditable.
However, our performance in the second half will be depressed by difficult conditions in our major markets both in North America and, increasingly, in Europe. Conditions are, above all, impacting sales volumes in our Communications group.
In response to this depressed market we are taking aggressive actions to protect profits and cashflows. At the same time, we are continuing to invest to enhance our product leadership and in sales and marketing to extend our global reach and grow our market share.
SOURCE: COMPANY PRESS RELEASE
