REG - Calnex Solutions PLC - AGM Statement

Calnex SolutionsAnnouncement

22/08/2024 07:01

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RNS Number : 3151B  Calnex Solutions PLC  22 August 2024

22 August 2024

Calnex Solutions plc

 

("Calnex", the "Company" or the "Group")

 

AGM Statement

 

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement
solutions for the global telecommunications and cloud computing markets,
provides an update on operations and trading ahead of its Annual General
Meeting ("AGM") taking place at 9am today.

 

Highlights

·    Launch of major Paragon-Neo release on track for H2 FY25, focused on
800Gb/s synchronisation testing

·    Successful launch in H1 FY25 of SNE-X with 400GbE to capitalise on
customer demand across the cloud computing and data centre markets

·    New channel partner network now operational

·    Telecoms market has remained challenging, but the Board is encouraged
by early successes of Calnex's new product releases and with continued tight
cost control the Board anticipates the Company's performance in FY25 will be
in line with market expectations

 

Operational update

The launch of Calnex's major Paragon-Neo release remains on track for H2 FY25,
with good progress made across the project. The first pre-production unit is
undergoing testing with the customer and initial feedback has been positive.
This Paragon-Neo release is focused on the area of 800Gb/s synchronisation
testing, the next generation of high-speed Ethernet, and the Company is
encouraged by the level of customer enquiries to date.

 

In H1, Calnex successfully launched SNE-X with 400GbE interfaces to capitalise
on customer demand across the cloud computing and data centre markets. The
product is the first network emulator of its kind for AI infrastructure and
other high-performance computing networks.

 

As previously announced, following the review of Calnex's sales channels and
channel partner arrangements earlier this year, the Board took the decision to
terminate its reseller agreement with Spirent and commenced discussions with
new and existing channel partners to facilitate changes to strengthen the
current arrangements. The Company is pleased to confirm that its new channel
partner network is now operational, covering the Group's territories of North
America, Europe, Middle East and Africa, as well as Asia-Pacific, including
those which were previously covered by the Spirent relationship.

 

Following the successful transition of sales and channel partner arrangements,
the Company is now seeking to establish direct supplier agreements with
several of its key customers to enhance these relationships. The Board remains
confident that the new multi-channel arrangement will be earnings enhancing.

 

Market outlook and trading

As anticipated, the telecoms market has remained challenging throughout the
first four months of FY25. While activity levels across the sector are
generally expected to stay at subdued levels for the remainder of the year,
the fundamental need for the Company's testing solutions remains strong. The
Board is encouraged by the early successes of Calnex's new product launches,
which are expected to underpin the Company's return to growth in H2 FY25.

 

Calnex continues to maintain tight cost control measures and benefit from a
healthy balance sheet and the Board anticipates that the Company's performance
in FY25 will be in line with market expectations.

 

For more information, please contact:

 

 Calnex Solutions plc                           Via Alma
 Tommy Cook, Chief Executive Officer

 Ashleigh Greenan, Chief Financial Officer

 Cavendish Capital Markets Limited - NOMAD      +44 (0)131 220 6939
 Derrick Lee, Peter Lynch

 Alma Strategic Communications                  + 44(0) 20 3405 0213
 Caroline Forde, Joe Pederzolli, Emma Thompson

 

Overview of Calnex

 

Calnex Solutions designs, produces and markets test and measurement
instrumentation and solutions for the telecoms and cloud computing industries.
Calnex's portfolio enables R&D, pre-deployment and in-service testing for
network technologies and networked applications, enabling its customers
to validate the performance of the critical infrastructure associated
with telecoms and cloud computing networks and the applications that run on
it.

 

To date, Calnex has secured and delivered orders in 68 countries across the
world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel,
Qualcomm, IBM and Meta.

 

Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with
additional locations in Belfast, Northern Ireland, Stevenage, England and
California in the US, supported by sales teams in China and India. Calnex has
a global network of partners, providing a worldwide distribution capability.

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