By Kristy Dorsey
Calnex Solutions has upped its full-year profit guidance amid continued “strong levels” of demand for its telecommunications testing equipment.
In a trading update for the six months to the end of September, the Linlithgow-based company said robust levels of trading are expected to carry through into the second half of the year. As a result, revenue and profits for the full year will be “materially ahead” of previous expectations.
The group said customer spending patterns have returned to pre-Covid levels in all regions except China, where demand is in line with that of last year during the first wave of global lockdown restrictions. With a “robust” cash position, Calnex is bringing forward planned investment to increase operational capability in line with the growth in orders.
READ MORE: Calnex continues cashing in on demand for mobile data
The company added that it has not yet experienced any negative impact from the global semiconductor shortage on its ability to manufacture and ship product, though it continues to monitor the situation closely.
“I am delighted to provide an update on what has been another period of strong growth for Calnex,” chief executive Tommy Cook said. “We have seen most of our customers return to pre-Covid spending patterns and have experienced demand from both new and existing customers for our latest product enhancements.
“Whilst we remain cautious with regards to the ongoing global semiconductor shortages, the strength in customer orders in the first half of the year provides us with confidence that the full year revenue and profits will exceed that of the record prior year and mark another considerable step forward for Calnex, as we continue to capitalise on the industry’s transition to 5G and the growth of cloud computing.”
READ MORE: Calnex beats expectations as it rides telecommunications wave
For the year to March 2021, Calnex posted a 31% increase in revenues to £18 million, with profits up 22% at £3.6m.
One of the company’s main product lines is equipment for measuring how efficiently a network operator’s equipment is passing mobile connections from one station to the next. Ensuring a maximum degree of this synchronisation boosts connection capacity and means the fewest number of users suffer dropped signals.
Shares in Calnex closed yesterday’s trading 7.5p higher at 122p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here