Calnex Solutions has reported "solid revenue and profit performance" in the second half of its financial year.
The Linlithgow-headquartered provider of test and measurement solutions for the telecommunications sector noted, however, that the global macroeconomic outlook remains challenging.
The company entered the second half of 2022 with a strong order book and successful conversion, while progress has been made in developing business in the data-centre sector and the integration of recently-acquired iTrinegy has gone well.
As a result, overall performance is in line with market expectations, delivering double-digit growth across revenue and profits.
Headwinds are gathering though, with growth slowing across the telecoms sector, with equipment manufacturers being adversely impacted, and many recently reporting a general softening of demand for their products and services.
The trading updated pointed out that 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," the statement read.
Based on short-term order run-rates, the board believes that the financial performance going into next year will be below that achieved in in 2023.
The board added that Calnex remains well placed to capitalise on the underlying long-term growth drivers in the telecoms and cloud computing markets.
Chief executive Tommy Cook explained: “This solid performance demonstrates 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."
Calnex designs, produces and markets test instrumentation and solutions for network synchronisation and emulation.
To date, the business has secured and delivered orders to more than 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 now has additional locations in Belfast, Northern Ireland, Stevenage, England and California, supported by sales teams in China and India.
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