REG - Calnex Solutions PLC - FY24 Trading Update and Notice of Results

Calnex SolutionsAnnouncement

03/04/2024 07:00

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RNS Number : 0498J  Calnex Solutions PLC  03 April 2024

This announcement contains inside information

 

03 April 2024

 

Calnex Solutions plc

("Calnex", the "Company" or the "Group")

 

FY24 Trading Update and Notice of Results

 

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement
solutions for the global telecommunications and cloud computing markets,
provides an update on trading for the year to 31 March 2024 ("FY24") and
outlook for FY25.

 

Calnex anticipates the results for FY24 will be broadly in line with market
expectations, with revenues of approximately £16.3 million and margins
maintained. The Company's cost base has been adjusted, maintaining and
focusing R&D spend to capitalise on the opportunities available to Calnex
whilst controlling other costs. The Group's balance sheet remains strong, with
cash as at 31 March 2024 of £11.9 million after investment in working capital
in H2.

 

While the Group's performance has been affected by the well documented ongoing
challenges in the telecoms sector, customer engagement levels have remained
high, providing confidence that improvement in the telecoms market outlook
will result in projects recommencing and customer spending resuming. Calnex is
well placed to fulfil orders relating to these projects once activity levels
increase.

 

The Board is encouraged by the level of positive engagement with customers on
the Group's new product programmes and in particular expects that continued
order growth from the defence and cloud computing sectors will enable Calnex
to return to growth in FY25.

 

Positioned for growth in FY25 and beyond

 

Management has focused the Group's engineering programmes on opportunities
showing the most near-term resilience and potential within the Group's
established telecoms market and in the newer markets of cloud computing and
defence.

 

Targeting growth in the telecoms market and long-term growth drivers intact

 

Within the telecoms market, the engineering programme is focused on the area
of 800Gb/s synchronisation testing, an unmet need where there is growing
customer demand. The Group anticipates a major new release in H2 FY25 to
support leading edge 800Gb/s interface testing. Looking ahead, while the
current challenges faced by the telecoms market are anticipated to continue
throughout 2024, the Board is confident the transition to 5G and further
development of O-RAN will drive a long-term transformation of the global
telecoms infrastructure and demand for our lab synchronisation products.

 

Cloud computing and data centre markets represent growing opportunity

 

Calnex's newly marketed products focused on the cloud computing and data
centre markets, SNE-X, SNE Ignite and NE-ONE, have seen encouraging levels of
interest and initial orders. Over the medium term, the cloud computing market
represents a significant additional opportunity for Calnex, given the
investment into this market to support high growth in Artificial Intelligence
(AI), virtual reality and increasing data centre demand. Measurement and
testing is critical to performance in these areas. New opportunities are being
assessed in network time monitoring, as well as data centre efficiency and
effectiveness. The Group has also experienced good order levels for its
application assurance offering, NE-ONE, in the defence, government and
satellite markets and anticipates this will continue in FY25.

 

To maximise these opportunities, the Company is optimising its market approach
for its suite of cloud focused offerings, bringing together its cloud
infrastructure and cloud application teams, with a view to developing a
consistent additional revenue stream.

 

Tommy Cook, Chief Executive Officer and founder of Calnex, said:

 

"In the face of a challenging telecoms market we have successfully adjusted
the focus of our engineering programmes towards the markets showing the most
resilience and opportunity, with positive customer conversations taking place
across each of our new product programmes. The cloud computing market in
particular represents an increasingly exciting opportunity and with the
long-term growth drivers in the telecoms market remaining intact, we are well
placed to return to growth in FY25 and beyond."

 

Notice of Results

 

The Company intends to announce audited results for the year ended 31 March
2024 on Tuesday 21 May 2024.

 

For more information, please contact:

 

 Calnex Solutions plc                        Via Alma
 Tommy Cook, Chief Executive Officer

 Ashleigh Greenan, Chief Financial Officer

 Cavendish Capital Markets Limited - NOMAD   +44 (0)131 220 6939
 Derrick Lee, Peter Lynch

 Alma Strategic Communications               + 44(0) 20 3405 0213
 Caroline Forde, Joe Pederzolli

 

 

Overview of Calnex

 

Calnex Solutions designs, produces and markets test and measurement
instrumentation and solutions for the telecoms and cloud computing industries.
Calnex's portfolio enables R&D, pre-deployment and in-service testing for
network technologies and networked applications, enabling its customers
to validate the performance of the critical infrastructure associated
with telecoms and cloud computing networks and the applications that run on
it.

 

To date, Calnex has secured and delivered orders in 68 countries across the
world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel,
Qualcomm, IBM and Meta.

 

Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with
additional locations in Belfast, Northern Ireland, Stevenage, England and
California in the US, supported by sales teams in China and India. Calnex has
a global network of partners, providing a worldwide
distribution capability.

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