5G is a “strong, enduring growth driver,” Spirent says
Spirent Communications saw strong performance and record orders during the first half of the year, driven by 5G and its targeting of new customers such as hyperscalers with assurance solutions.
CEO Eric Updyke said in a statement that the company is “executing well on our strategy of moving deeper into the exciting structural growth areas of our industry, from wireless 5G networks to the internet of things and cloud assurance.”
Spirent reported strong growth across all of its end markets, resulting in revenues of $280.1 million during the first half.
“5G once again proved to be a strong, enduring growth driver,” the company said, adding that it garnered more than 350 new contracts from more 130 customers in the first half of the year.
The company said that it has bolstered its sales investment to target new customers such as chipset vendors and providing cloud assurance for hyperscalers. Its networks and security segment revenues were up 9% from 2021’s first half, which the company said was driven by increases in data traffic and data center upgrades. Its services and managed solutions business segment saw revenues grow 17% from the first half of 2021, while its lifecycle service assurance segment revenues were up 10% compared to the same period last year. The latter segment accounted for 45% of Spirent’s first-half revenues.
Spirent also said that it saw “good growth” in Wi-Fi testing since its 2021 acquisition of octoScope. Spirent also noted that it launched its new Vantage real-time assurance offering in July to “meet growing demand outside of North America.” (Read more about Vantage here.)
As far as supply chain issues, Spirent said that it has been able to manage component delays with “minimal impact” to its delivery schedules, but that it expects that it will need do to “further active management of supply chain risks … through the remainder of the year.”
