Calnex Solutions Provides Trading Update and Notice of Results

Calnex Solutions plc, a provider of test and measurement solutions for the telecommunications and cloud computing markets, has provided a trading update for the full year to 31 March 2024 (FY24) and beyond. The company's order inflow in the first six months of FY24 has remained subdued, with uncertain timing of future customer orders. The improving outlook for the sector earlier this year has not gained momentum, and some customers have chosen to delay projects and associated orders due to wider economic uncertainty. As a result, the Board expects H2 FY24 to be slower than anticipated.

Due to the challenging market conditions, Calnex now anticipates that revenues for FY24 will be around 20-30% below current market expectations, depending on the timing of orders. However, 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 of £13.5 million at the end of September 2023, enabling Calnex to target growth opportunities and maintain customer relationships.

Despite the current challenges, Calnex's sales pipeline remains strong, and the company is well positioned to convert the pipeline to orders once spending patterns normalize. The Board is confident in a return to growth in FY25, with the ability to target opportunities in both the telecoms and cloud computing sectors. Calnex is actively targeting new markets with its expanded product range, including the large data center market, real-time cloud-based applications, defense and government markets, and enhancements to its Paragon platform and SyncSense product.

The company will announce unaudited results for the six months ended 30 September 2023 on 21 November 2023. Tommy Cook, CEO and founder of Calnex, expressed confidence in the long-term prospects for the company, citing the need to upgrade telecoms infrastructure for 5G and enhance data center operations to support cloud computing and advancements in AI and virtual reality technologies.