UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2006
SPIRENT plc
_____________________________________________________________________
(Translation of registrant's name into English)
Spirent House, Crawley Business Quarter, Fleming Way, Crawley, West Sussex
RH10 9QL, UK.
_____________________________________________________________________
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
SPIRENT PLC
AGM STATEMENT
TRADING UPDATE
London, UK - 3 May 2006: Spirent plc (LSE: SPT; NYSE: SPM), a leading
communications technology company, is holding its Annual General Meeting later
today.
Highlights
- First quarter revenues ahead of expectations in a very competitive
market.
- Additional GBP3 million investment in product development and sales and
marketing.
- Profit expectations unchanged for the year as a whole.
- Share buy back of up to GBP50 million to commence shortly, subject to
approval today.
- Name change to Spirent Communications plc, subject to approval today.
At the meeting, John Weston, Chairman of Spirent will make the following remarks
to shareholders on current trading and other matters:
Current Trading
"As initially indicated at the time of the Company's 2005 preliminary results
issued on 23 February 2006, trading during the first quarter of the current
financial year was characterised by continuing variable market conditions,
albeit the quarter is typically Spirent's quietest.
However, I am pleased to report that first quarter revenues were ahead of our
expectations as at the time of our preliminary results in what remains a very
competitive market place.
Divisional performance was as follows:
- Performance Analysis Broadband ("PAB") saw solid revenue growth driven by
concerted development and sales and marketing activity. This additional
investment will reduce PAB's expected first half trading profit by GBP3
million, however we do not expect this expenditure to be repeated in the
second half. During the quarter there was also some competitive positioning
on price with a consequent impact on margins.
- Performance Analysis Wireless continued to show strong growth and good
profitability.
- We are pleased with the initial performance of the two businesses
acquired at the start of the year, SwissQual and QuadTex, and integration
is proceeding to plan. We anticipate them contributing positively to
earnings as the year progresses.
- Service Assurance showed growth in revenue over the corresponding period
last year, trading close to breakeven.
- Systems continued to perform profitably and in line with expectations.
As we indicated in February, 2006 is a year of product transition as the
increased capability of our new products and solutions will enable us to gain
market share. To date we have been encouraged by the performance of these new
products, such as the Spirent TestCenterTM, and by the response of our
customers.
Overall, our profit expectations for the year as a whole are unchanged. We
continue to anticipate that the Group's performance will show recovery over last
year, although with a pronounced seasonal bias to the second half as benefits
progressively accrue from our investment in the business and our recent
acquisitions.
Spirent will issue its interim results on 10 August 2006.
Conclusion
Over the last eighteen months, we have transformed Spirent into a focused
communications business with a significantly strengthened financial position.
The recent acquisitions of SwissQual and QuadTex and the successful disposal of
HellermannTyton were key events in this transformation.
The decision to focus on communications reflects our view that the sector offers
Spirent the best top and bottom line growth opportunities in the mid and long
term, leveraging our leading market positions in our key product segments.
To reflect the transformation of the Group, a proposal is being voted upon today
to rename Spirent plc as Spirent Communications plc. In addition, we are in the
process of establishing our operational headquarters in Sunnyvale, California,
in the centre of Silicon Valley where we have the highest concentration of
customers. Our corporate headquarters will remain in the UK.
Spirent has a broad portfolio of market-leading products addressing some of the
fastest growing segments in the broadband and wireless markets. As a result we
remain confident that Spirent is well positioned to take advantage of the many
opportunities in its market place."
- ends -
Enquiries
Anders Gustafsson, Chief Executive Spirent plc +44 (0)1293 767676
Eric Hutchinson, Finance Director
Reg Hoare/Katie Hunt Smithfield +44 (0) 20 7360 4900
About Spirent
Spirent is a leading communications technology company focused on delivering
innovative systems and services to meet the needs of customers worldwide. We are
a global provider of performance analysis and service assurance solutions that
enable the development and deployment of next-generation networking technologies
such as broadband services, Internet telephony, 3G wireless and web applications
and security testing. The Systems group develops power control systems for
specialist electrical vehicles in the mobility and industrial markets. Further
information about Spirent plc can be found at www.spirent.com
Spirent Ordinary shares are traded on the London Stock Exchange (ticker: SPT)
and on the New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209) in the
form of American Depositary Shares (ADS), represented by American Depositary
Receipts, with one ADS representing four Ordinary shares.
Spirent and the Spirent logo are trademarks or registered trademarks of Spirent
plc. All other trademarks or registered trademarks mentioned herein are held by
their respective companies. All rights reserved.
This press release may contain forward-looking statements (as that term is
defined in the United States Private Securities Litigation Reform Act of 1995)
based on current expectations or beliefs, as well as assumptions about future
events. You can sometimes, but not always, identify these statements by the use
of a date in the future or such words as "will", "anticipate", "estimate",
"expect", "project", "intend", "plan", "should", "may", "assume" and other
similar words. By their nature, forward-looking statements are inherently
predictive and speculative and involve risk and uncertainty because they relate
to events and depend on circumstances that will occur in the future. You should
not place undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that could cause our
actual results to differ materially from those expressed or implied by these
statements. Such factors include, but are not limited to: the extent to which
customers continue to invest in next-generation technology and deploy advanced
IP-based services; our ability to successfully expand our customer base;
continuing variable market conditions; pace of economic recovery; our ability to
improve efficiency, achieve the benefits of our cost reduction goals and adapt
to economic changes and other changes in demand or market conditions; our
ability to develop and commercialise new products and services, extend our
existing capabilities in IP services and expand our product offering
internationally; our ability to attract and retain qualified personnel; the
effects of competition on our business; fluctuations in exchange rates and heavy
exposure to a weak US dollar; changes in the business, financial condition or
prospects of one or more of our major customers; risks of doing business
internationally; risks relating to the acquisition or sale of businesses and our
subsequent ability to integrate businesses; our reliance on proprietary
technology; our exposure to liabilities for product defects; our reliance on
third party manufacturers and suppliers; and other risks described from time to
time in Spirent plc's Securities and Exchange Commission periodic reports and
filings. The Company undertakes no obligation to update any forward-looking
statements contained in this press release, whether as a result of new
information, future events or otherwise.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
______LUKE THOMAS______
(Registrant)
Date 03 May 2006 By ____/s/ Luke Thomas____
(Signature)*