Spirent reports loss of $1.1 billion in 2001

By Cecile Daurat
Bloomberg News

LONDON — Spirent Plc, whose products test phone equipment for customers such as Cisco Systems Inc., said it ran a loss last year because of costs related to acquisitions and falling sales of its testing tools.

The loss of 763.5 million pounds ($1.1 billion) compares with net income of 50.7 million pounds a share in the year-ago period. The 2001 loss includes nearly $1 billion in write-down of goodwill related to acquisitions.

"The results were not as good as we expected," said Michael Blogg, an analyst at ING Barings' Charterhouse Securities. "We think the recovery will happen in 2003, not this year."

Under Chief Executive Officer Nicholas Brookes, Spirent bought about a dozen companies — including Hawai'i-based Adtech — since 1996 to focus on phone-gear testing and tools for monitoring networks of clients such as Verizon Communications Inc. The testing unit, its biggest, fell in the first half of last year when clients cut budgets, prompting Spirent to slash 10 percent of its work force.

Spirent said demand stabilized in the second half and in January.

"Research-and-development engineers of the major equipment manufacturers have gone down to levels where they need to buy equipment they must have," said Financial Director Eric Hutchinson.

Revenue at the testing-equipment unit probably will fall about 10 percent this year, he said, after falling 13 percent in 2001.