Fact sheet - Spirent Corporate

Fact sheet
http://corporate.spirent.com
Ticker
LSE: SPT
Sector
Technology Hardware & Equipment
About Spirent
2013 – Financial highlights
At Spirent we inspire ideas that sit at the heart of everything we do.
We are a global leader in communications test and measurement. We
develop hardware and software solutions that help our customers
innovate their products, systems and networks.
 Group revenue up 11% to $457.2 million (2013 $413.5 million)
acquisitions contributed $18.6 million, with growth in all operating
divisions and in all geographic regions.
 Book to bill ratio 103 (2013 105).
 Group adjusted operating profit $46.0 million (2013 $50.1 million)
after absorbing $24.4 million increased organic investment in product
development, sales and marketing and support services.
 Dividend up 10%. Final dividend proposed of 2.21 cents per Ordinary
Share, giving full year dividend of 3.89 cents per Ordinary Share.
 Free cash flow $10.7 million (2013 $43.9 million) affected by high
activity in December and investment in new improved leasehold
facilities; cash closed at $99.8 million after acquisition consideration
of $85.9 million and share buyback and dividends totalling $38.6
million.
Spirent employs 1,700+ talented people working in 33 locations who
serve our 1,700 customers worldwide.
Spirent is listed on the London Stock Exchange.
Spirent at a glance
The Group is organised into three operating segments.
Networks & Applications:
Revenue 2014 $221.5m (2013 $213.4m)
1
Operating profit 2014 $7.6m (2013 $13.2m)
Spirent’s networks and applications solutions develops innovative
solutions for functional, performance and security testing of nextgeneration networks and applications that simulate real-world
conditions in the lab, before a commercial launch.
Divisional focus:





Ethernet
Data center/cloud/virtualization
Applications and security
Test automation, orchestration and management
Mobility and wireless infrastructure
Wireless & Service Experience:
Revenue 2014 $178.6m (2013 $167.7m)
1
Operating profit 2014 $24.0m (2013 $33.8m)
Spirent’s wireless and service experience solutions apply our
innovation to functional and performance testing of 4G LTE and 3G
mobile devices, services and infrastructure, and satellite positioning
devices.
Divisional focus:




Wireless devices
Wireless services, including VoLTE
Satellite navigation and global positioning
Wireless service experience
Service Assurance:
Revenue 2014 $57.1m (2013 $32.4m)
1
Operating profit 2014 $20.7m (2013 $9.0m)
Spirent’s service assurance solutions allow service providers to
diagnose, troubleshoot and determine how to resolve issues with
networks and systems within the entire live network – whether
virtualized or not.
Divisional focus:




Notable events during the year were as follows:
 Expansion of served markets through strategic technology
acquisitions, including customer experience management, 4G voice
and video services, and device intelligence;
 In high speed Ethernet we were the first vendor to show working
400G Ethernet test capability to meet early design and development
needs, in conjunction with Huawei and Xilinx;
 For Mobility testing, we continued to be the choice of industry
leaders, as China Mobile Research Institute used our Landslide
solution to verify the performance of its 4G/3G evolved packet core
network;
 We addressed the complex new testing challenges and scale demands
of the latest wireless and machine-to-machine devices and services
with the launch of our Elevate Test Framework, with an initial focus
on voice over LTE (“VoLTE”) and rich communication services (“RCS”);
 Our security test solutions gained additional industry recognition,
with Spirent Avalanche NEXT winning the “Best of Interop 2014”
award in the Performance category for delivering application
performance testing capabilities into the realm of traditional IT;
 In the areas of cloud and virtualization we advanced our position
software-defined networking (“SDN”) testing with new capabilities for
service providers on Spirent TestCenter and with Spirent Velocity, the
first open-framework, cloud-based test platform for rapid
development and validation of SDN and network functions
virtualization technologies and deployments;
 We addressed the increasingly important issue of Global Navigation
Satellite System (“GNSS”) vulnerability in critical applications with the
release of Spirent’s SimSAFE, a test bed that enables evaluation of
GNSS receiver resilience and aids in the development of counter
measures.
Substantial shareholders**
Ethernet business services
Field test solutions
Mobile device management and analytics
Customer experience management
Note
1 Before exceptional items.
Spirent share price
Share price*
52-week closing price range
Shares in issue with voting rights
Market cap*
2013 – Operational and strategic highlights
88.00p
66.15-107.80p
611m
£538m
Ameriprise Financial, Inc.
Prudential plc
AXA Investment Managers SA
Artemis Investment Management Limited
Standard Life Investments Ltd
Aviva plc
Fidelity International
Schroders plc
Sun Life Assurance Company of Canada (UK) Ltd
% held
13.03
11.10
7.77
5.38
5.29
4.91
4.82
4.41
3.82
**At 1 June 2015 Spirent has been notified of the following significant interests in
its Ordinary Shares pursuant to Disclosure and Transparency Rule 5.
*At 11 June 2015
Spirent Communications plc, Northwood Park, Gatwick Road, Crawley, West Sussex, RH10 9XN, United Kingdom
Telephone +44 (0)1293 767676 | Fax +44 (0)1293 767677 | Registered office and Registered in England Number 470893
Further information about Spirent Communications plc can be found at http://corporate.spirent.com
June 2015
Fact sheet
http://corporate.spirent.com
Ticker
LSE: SPT
Sector
Technology Hardware & Equipment
Our strategy
Our vision is to be the leading experts in test and measurement
technology in the data communications market worldwide.
Expand the markets we serve
This will be achieved through the extension of our test product
portfolio to serve network and applications security, mobile
communications quality of service in the live network, development of
microchip technologies for data communications, and monitoring
systems for live network deployments for service providers and
enterprise.
Establish and maintain technology leadership
Through investment in product development engineering, the
extension of our engagement with industry standards bodies, and
close alignment with our customers who lead innovation in the
industries we serve we will maintain and enhance our expertise. We
aim to expand our competencies in test automation, efficiency and
methodology, high performance test, scalability and in the replication
of, and use of, live real-world traffic and conditions.
Deepen our customer relationships
Our partnership with our customers will be strengthened through new
innovative solutions for their future needs and by extending the
capabilities of our in-house expertise with an emphasis on quality of
service, delivery and support. New relationships will be established
with the expansion of our sales and marketing reach into new vertical
segments and geographic regions.
Acquire new capabilities and technologies
Through expansion of our portfolio through partnerships, licensing
technologies and/or the purchase of businesses.
Invest in our people
Spirent is its employees. Finding, keeping and engaging highly
qualified and skilled employees are central to our ability to deliver on
our strategy and to the success of our business.
Maintain financial strength and flexibility
Having a robust balance sheet and strong cash generation gives
Spirent the ability to invest in organic growth, pursue strategic
acquisitions and pay sustainable dividends to shareholders. We
operate in markets that deliver high operating returns and operating
performance and cash generation are closely aligned.
Recent acquisitions
Management
Eric Hutchinson, Chief Executive Officer
Eric was appointed to the Board in
January 2000 as Chief Financial Officer
and appointed Chief Executive Officer in
September 2013.
Before this appointment, Eric joined the
Company in 1983 and worked in various
roles in the finance function prior to his appointment as Chief
Financial Officer.
He is a Fellow of the Association of Chartered Certified Accountants
and a member of the Financial Reporting Review Panel.
Rachel Whiting, Chief Financial Officer
Rachel was appointed to the Board in
February 2014 as Chief Financial Officer.
Rachel joined the Company in 1986,
working in various roles within finance,
before being appointed Head of Group
Tax in 2003, and adding the role of
Company Secretary in 2009.
She is a Fellow of the Institute of Chartered Accountants in England &
Wales and an Associate of the Chartered Institute of Taxation and of
the Institute of Chartered Secretaries and Administrators.
Key financials – Continuing operations
$ million
Reported revenue
Reported operating profit
1
Adjusted operating profit
Basic earnings per share
(cents)
Adjusted basic earnings per
1, 2
share (cents)
3
Dividend per share (cents)
4
Free cash flow
2014
457.2
23.7
46.0
2013
413.5
39.1
50.1
2012
472.4
108.1
118.3
3.35
5.10
12.11
5.82
3.89
10.7
5.71
3.54
43.9
13.02
3.22
84.0
Notes
1 Before exceptional items, acquisition related costs, acquired intangible asset
amortisation and impairment and share-based payment.
2 Before tax effect of items in 1 and prior year tax.
3 Dividends are determined in US dollars and paid in sterling at the exchange
rate prevailing when the dividend is proposed or declared.
4 Operating cash flow after tax, net interest and net capital expenditure.
Spirent Communications plc acquires Mobilethink A/S
15 September 2014 - Spirent has acquired Mobilethink A/S
(“Mobilethink”) and its wholly owned subsidiary, Tweakker ApS
(“Tweakker”). Mobilethink is a provider of mobile device
management, device analytics and intelligence solutions for mobile
operators. Tweakker is a cloud-based mobile device configuration
solution specifically targeted at Mobile Virtual Network Operators.
Spirent Communications acquires Radvision's Technology Business
Unit
2 July 2014 - Spirent has entered into a definitive agreement to
acquire the assets of Radvision’s Technology Business Unit, the part of
the Radvision business responsible for delivering industry-leading
developer solutions.
Spirent Communications plc, Northwood Park, Gatwick Road, Crawley, West Sussex, RH10 9XN, United Kingdom
Telephone +44 (0)1293 767676 | Fax +44 (0)1293 767677 | Registered office and Registered in England Number 470893
Further information about Spirent Communications plc can be found at http://corporate.spirent.com
June 2015