LONDON--Shares in telecommunications equipment tester Spirent
Communications PLC (SPT.LN) fell more than 16% after it said
revenue is being hurt by merger activity among its customer
base.
The company now expects more modest revenue rises than
previously expected in the third and fourth quarter amid softer
trading conditions in the U.S. and China.
"Demand levels dipped sharply as a result of merger activity and
delays in capital expenditure as future new technology deployments
are being assessed in areas in which Spirent has increased its
investments," the company said.
Spirent didn't specify which merger activity is affecting its
sales and wasn't immediately available for comment but analysts at
Barclays said they think the merger comments might refer to the
U.S. telecoms company AT&T Inc (T), historically Spirent's
largest customer. AT&T recently spend $49 billion on satellite
TV company DirecTV.
Spirent provides testing services for smartphones and other
devices and for telecommunications networks.
Shares at 0735 GMT, down 16 pence, or 16.7%, at 82 pence,
valuing the company at 501.3 million pounds ($801.9 million).
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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