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SPIRENT COMMUNICATIONS PLC

Trading Update 2020

London, UK - 18 January 2021: Spirent Communications plc ('Spirent', the 'Company' or the 'Group') (LSE: SPT), the leading provider of test, assurance, and analytics solutions for next-generation devices and networks, today issues the following Trading Update for the 2020 year, noting all financial results are subject to external audit.

Group performance

We delivered good momentum in the final quarter of 2020, despite continued global challenges to manage through this difficult COVID-19 period. We secured a number of key contract wins across the portfolio, serving as important proof points that our strategy is working. Our customers continue to invest in 5G-related infrastructure, devices and services, a trend we expect to continue.

For the full year, revenue grew by 4 per cent to $522 million and we expect to deliver an adjusted operating profit¹ in line with market consensus², which represents strong earnings growth over 2019. Adjusted operating margin has increased to almost 20 per cent from 18 per cent in 2019.

In the final quarter we benefited from strong growth from our Lifecycle Service Assurance business driven by increased demand for both lab and live assurance solutions as the 5G network continues to roll out. We also experienced some delay for high-speed Ethernet testing by service providers as COVID-19 impacted customer spending patterns.

In the latter part of the year we saw some positive bounce back for our Positioning products, and strong demand for our new 5G device testing resulted in full year revenue growth for Connected Devices slightly ahead of our expectations.

Despite market uncertainty caused by the pandemic, we continued to invest in the business to ensure we maximise our mid-term growth potential. Further progress is being made to evolve our organisational structure to support our growth plans. From 1 January the Connected Devices business will be merged into our Lifecycle Service Assurance segment to provide comprehensive end-to-end lab and live solutions to customers. In addition, the formation of a new CTO office (Chief Technology Office) will ensure we drive effectiveness in our technology investments across our portfolio and are optimally placed to develop business solutions for our customers in existing and new markets as they emerge.

Cash closed at $241 million, with high cash conversion driven from continued strong working capital management. Ahead of announcing the preliminary results of the Group, and in line with its existing policy, the Board intends to review the Group's cash position in light of the outlook, investment opportunities, and other factors. To the extent the Board determines that the Group has excess cash, the Board will look to return it to shareholders.

Commenting on the results, Eric Updyke, Chief Executive Officer, said:

'We have successfully managed through a difficult environment in 2020 and I am delighted we are making strong progress with our strategic agenda. We delivered another year of revenue and earnings growth and, although we experienced some softness in the latter half of the year due to timing of expenditure by global service providers, the 5G-driven momentum in our Lifecycle Service Assurance business continues to be strong.'

'Supported by a strong financial and operational platform, we begin the new financial year well placed, with our main drivers intact and with leading technology solutions across our portfolio. However, the ongoing COVID-19 impact on customer spending patterns remains a headwind and as a result we expect growth to be second half weighted.'

Spirent expects to announce its full year results for the financial year ended 31 December 2020 on Thursday, 11 March 2021. The Company will publish a recorded presentation at 7.00am UK time on its website and will also host a live, virtual results Q&A session for the analyst community at 12.30pm UK time on Thursday, 11 March 2021.

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Notes

Enquiries

Spirent Communications Md

About Spirent Communications plc

Spirent Communications plc (LSE: SPT) is the leading global provider of automated test and assurance solutions for networks, cybersecurity, and positioning. The company provides innovative products, services and managed solutions that address the test, assurance and automation challenges of a new generation of technologies, including 5G, SD-WAN, cloud, autonomous vehicles and beyond. From the lab to the real world, Spirent helps companies deliver on their promise to their customers of a new generation of connected devices and technologies. Further information about Spirent Communications plc can be found at https://corporate.spirent.com/.

Spirent Communications plc Ordinary Shares are traded on the London Stock Exchange (ticker: SPT; LEI: 213800HKCUNWP1916L38). The Company operates a Level 1 American Depositary Receipt (ADR) programme with each ADR representing four Spirent Communications plc Ordinary Shares. The ADRs trade in the US over-the-counter (OTC) market under the symbol SPMYY and the CUSIP number is 84856M209. Spirent ADRs are quoted on the Pink OTC Markets electronic quotation service which can be found at http://www.otcmarkets.com/marketplaces/otc-pink.

Spirent and the Spirent logo are trademarks or registered trademarks of Spirent Communications plc. All other trademarks or registered trademarks mentioned herein are held by their respective companies. All rights reserved.

Cautionary statement regarding forward-looking statements

Drivers Spirent Communications Plc USB Devices

This document may contain forward-looking statements which are made in good faith and are 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. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

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Press Release

San Jose, Calif. – May 7, 2018 – Spirent Communications plc (LSE:SPT) and Cohda Wireless announced today that they are extending their partnership to support the testing of WAVE-DSRC vehicle-to-everything (V2X) devices.

Building on their long successful cooperation for testing the European V2X standard ITS-G5, Cohda Wireless and Spirent have joined efforts to provide similar tests for the USDOT WAVE-DSRC standards, as per IEEE1609.x and SAE J2945/1.

Spirent and Cohda Wireless will be participating in the OmniAir Motor City Plugfest May 7th-11th in Plymouth, MI, where Spirent is providing WAVE-DSRC V2X conformance testing at five test stations, enabling V2X vendors to prepare for OmniAir certification and to improve their product quality. Spirent’s main focus at this plugfest will be on functional and performance requirements, as defined in SAE J2945/1 and IEEE1609.2 standards, which include security and mobility features known to be potential sources of interoperability and safety issues for this technology.

“Spirent’s test solution has helped us validate compliance of our MK5 device in accordance with WAVE-DSRC standards in preparation for OmniAir certification,” said Bernd Lübben, Cohda VP of Business Development. “Spirent’s WAVE-DSRC V2X conformance test solution is an intuitive tool supporting a high level of automation and allowed us to meet our project testing targets by combining usability and performance,” added Mr Lübben. “Cohda is pleased to be working with Spirent towards achieving full conformance for V2X stacks. Spirent’s close cooperation in discussing test cases and providing early releases to Cohda has been invaluable in improving the quality of our software.”

Stephan Pietsch, Spirent's Director of Engineering for Automotive said: “We are proud to support Cohda’s efforts for the conformance testing of its MK5 V2X device with the goal of successfully completing OmniAir’s certification program. We are fully committed to continuing this cooperation as part of our ongoing support for V2X technology deployment.”

V2X is the foundation for a wide range of applications that will significantly enhance road safety by alerting drivers and embedded systems onboard the vehicle about road work, lane closures, traffic signal timings, and even potential collision hazards. V2X technology will greatly contribute to optimizing the safe flow of traffic, ultimately enabling fully autonomous vehicles to operate safely using cooperative intelligent transportation systems (C-ITS).

Interoperability across vehicular communication devices and associated software from different manufacturers is highly critical for the success of V2X technology. To ensure interoperability, the OmniAir Consortium has put in place a rigorous Connected Vehicle Certification Program to verify compliance with current standards and regulations. The U.S. Department of Transportation (USDOT) mandates manufacturers to have their equipment certified by OmniAir Consortium as a precondition to participating in pilot deployments in the United States.

Spirent, the leading provider of connected car and automotive Ethernet test solutions, recently released a new version of its TTsuite WAVE-DSRC test solution, which received Qualified Test Equipment status from OmniAir for the first program in the world to certify vehicle-to-everything (V2X) compliance to standards and regulations.

Cohda Wireless is a key solution provider of V2X devices with its MK5 device supporting ITS-G5 as well as WAVE-DSRC standards. The partnership between the leader in testing and the leader in V2X stacks & applications will allow the mass market access to best-in-class V2X technology. Furthermore, Cohda is developing a test interface for its customers to facilitate test automation for device certification.

For more information on Spirent’s TTsuite-WAVE-DSRC test solution, please visit our website.