REG - Calnex Solutions PLC - Trading Update

Calnex SolutionsAnnouncement

07/03/2023 07:00

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RNS Number : 0712S  Calnex Solutions PLC  07 March 2023

This announcement contains inside information.

 

7 March 2023

Calnex Solutions plc

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

 

Trading Update

 

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement
solutions for the global telecommunications sector, provides an update on the
Company's trading performance for the financial year ending 31 March 2023
("FY23") and the outlook for the following year to 31 March 2024 ("FY24").

 

Key Points

·    Solid revenue and profit performance in the second half of FY23

·    FY23 results expected to be in line with market expectations

·    Global macroeconomic outlook remains challenging

 

Update on Trading in FY23

The Company entered the second half of FY23 ("H2") with a strong order book
and successful conversion and delivery has led to the anticipated improved
performance in H2. Good progress has been made in developing business in the
data-centre sector and the integration of iTrinegy has gone well, opening up
opportunities in the applications testing sector. As a result, the Board is
pleased to confirm that it expects a strong financial performance in FY23, in
line with market expectations and delivering double digit growth across
revenue and profits.

 

Outlook for FY24

The macroeconomic outlook remains challenging, with growth slowing across the
globe. Telecoms sector participants, including global equipment manufacturers,
have been adversely impacted, with many recently reporting a general softening
of demand for their products and services in the short-term, albeit noting
that the long-term structural growth drivers remain strong.

 

In response to the macroenvironment, some of Calnex's customers are currently
taking a more cautious approach to investment decisions until there is better
visibility on their project development timelines. Whilst these customers
remain committed to the delivery of projects which will rely on Calnex's test
instrumentation and solutions, the timing of these orders is less certain and
market-driven delays are likely to have an impact on the Group's performance
in FY24. Based on short-term order run-rates, the Board believes that the
financial performance in FY24 will be below that achieved in FY23, with the
Company's revenues more heavily weighted to H2 of FY24.

 

The Board is confident that, as the industry spending cycle normalises, the
Company will see an uplift in orders from the current, more subdued, levels.
Calnex remains well placed to capitalise on the underlying long-term growth
drivers in the telecoms and cloud computing markets and the Company will
provide an update on prospects for FY24 when the Preliminary Results for FY23
are announced in May 2023.

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

 

"We are pleased to anticipate delivering financial results for FY23 in line
with market expectations, with this solid performance demonstrating the
positive response from customers to our expanding product set and our ability
to successfully navigate the supply chain challenges. While the global
macroenvironment is influencing order growth in the short-term, our expanded
offering and strong financial footing mean we are well-placed to return to a
growth trajectory once market confidence returns."

 

For more information, please contact:

 

 Calnex Solutions plc                             Via Alma PR
 Tommy Cook, Chief Executive Officer

 Ashleigh Greenan, Chief Financial Officer

 Cenkos Securities plc - NOMAD                    +44 (0)131 220 6939
 Derrick Lee, Peter Lynch

 Alma PR                                          + 44(0) 20 3405 0213
 Caroline Forde, Hannah Campbell, Joe Pederzolli

 

Overview of Calnex

 

Calnex designs, produces and markets test instrumentation and solutions for
network synchronization and network emulation, enabling its customers
to validate the performance of the critical infrastructure associated
with telecoms networks. To date, Calnex has secured and delivered
orders to over 600 customer sites 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 worldwide distribution capability.

 

 

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