TIDMCLX
RNS Number : 6739P
Calnex Solutions PLC
10 October 2023
This announcement contains inside information
10 October 2023
Calnex Solutions plc
("Calnex", the "Company" or the "Group")
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 and outlook for
the full year to 31 March 2024 ("FY24") and beyond.
In the first six months of FY24, the Company's order inflow has
remained at the subdued levels experienced at the start of the
year, with the precise timing of future customer orders remaining
uncertain. The cautiously improving outlook for the sector
identified earlier this year has not developed momentum and the
Company is aware that certain customers have elected to delay
projects and associated orders in response to continuing wider
economic uncertainty. These factors have led the Board to conclude
that H2 FY24 will be slower than anticipated.
The challenging market conditions mean the Board now anticipates
that, whilst revenues are expected to increase in H2 versus H1,
revenues for FY24 will be in the region of 20-30 per cent below
current market expectations, depending on the timing of orders. No
customer orders have been cancelled and all are expected to be
fulfilled once the delays to customer project spending are
relaxed.
The Company's balance sheet remains robust, with cash at the end
of September 2023 of GBP13.5 million, following investment in
inventory. The cash position enables the Company to continue to
target growth opportunities in its key sectors and maintain
relationships with customers as they plan future investment in
their projects.
Calnex's sales pipeline remains strong and the Company's close
relationships with its customers leaves it well positioned to
convert the sales pipeline to orders once spending patterns
normalise.
The Board is confident in a return to growth in FY25, with
Calnex able to deploy its suite of products to target opportunities
in both the Telecoms and Cloud-computing and related sectors. Costs
are closely monitored with investment in new products subject to
stringent assessment.
The Company is actively targeting new markets with its expanded
product range, and recently launched, or soon to be launched,
enhanced product lines within existing and new key markets,
include:
-- Sentry timing product to address the large data centre market.
-- SNE-Ignite and SNE-X products have been designed to prove the
performance of new, real-time cloud-based applications.
-- NE-ONE, Calnex's recently acquired network emulation product,
is targeting defence and government markets.
-- Enhancement to the Paragon platform, through a major new
release in H2 FY25 to support leading edge 800Gb/s interface
testing.
-- SyncSense, Calnex's newly-developed data centre and telecom
network management timing product, has been well received by
customers.
These products will enhance penetration in the Company's target
markets, reinforcing the potential for growth in FY25 and
beyond.
Notice of Results
The Company intends to announce unaudited results for the six
months ended 30 September 2023 on Tuesday 21 November 2023.
Tommy Cook, Chief Executive Officer, and founder of Calnex,
said: "Whilst the telecommunications market outlook is currently
challenging, the expansion of our product portfolio to areas
outside of telecommunications and our strong sales pipeline mean we
are confident in a return to growth in FY25.
"Looking to the longer-term, the underlying market drivers
continue to build, such as the need to upgrade telecoms
infrastructure to deliver the promise of 5G, and to enhance data
centre operations to support the demand for cloud computing and
advancements in AI and Virtual Reality technologies. As a result,
our confidence in the long-term prospects for Calnex remains
high."
For more information, please contact:
Calnex Solutions plc Via Alma PR
Tommy Cook, Chief Executive Officer
Ashleigh Greenan, Chief Financial Officer
+44 (0)131 220
Cavendish Securities plc - NOMAD 6939
Derrick Lee, Peter Lynch
+ 44(0) 20 3405
Alma 0213
Caroline Forde, Hannah Campbell, 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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END
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