Spirent says customer delays to hurt fourth-quarter revenue

Oct (KOSDAQ: 039200.KQ - news) 24 (Reuters) - British telecoms testing company Spirent Communications Plc said fourth-quarter revenue would be $12 million lower than it had estimated due to a delay in customers taking delivery of its products.

The company, which tests ethernet networks and 3G and 4G wireless networks and devices, said revenue from the delayed shipments would be recognised in the first half of next year.

The company added that order intake for the fourth quarter was on track and revenue is expected to be in the region of $115 million to $120 million.

Third-quarter revenue fell 3.7 percent to $107.7 million.

Adjusted operating profit fell more than 40 percent to $16.1 million. Gross margins fell to 70.1 percent from 72.4 percent a year earlier.

"Evidence of a slowing order book in 3Q and revenue push-outs on 4Q offer a slower end to the year than we previously anticipated," Jefferies Analyst Lee Simpson said in a note.

"Volatile conditions with handset testing customers appears the main issue."

Spirent has been sailing through rough waters this year with lower orders in the first quarter and a weak performance at its network and applications unit leading to a 72 percent drop in first-half profit.

Simpson said he expects order book to improve through 2014, with an about 12 percent year-on-year sales growth and gross margin rise of 140 basis points.

He expects earnings before interest and tax of $76 million to $77 million.

Spirent shares fell as much as 7 percent in early trade, but recovered the losses and was trading flat at 123 pence at 0836 GMT on Thursday on the London Stock Exchange (LSE: LSE.L - news) .