Calnex Solutions Share Discussion Threads

[2bluelynn] 03/4/2024 08:45

Funny enough John I sold out and bought ITV a week back 3.3 ex pence divi 11th of April

[pireric] 03/4/2024 07:27

Frankly embarassing from both Calnex management, the house broker and the PR company to shadow put through an 18% cut to FY24 adj. EBITDA that you wouldn't have guessed from reading that press release

Wall of Shame:

Ashleigh Greenan - CFO
Ian McInally - Cavendish Analyst
Caroline Forde, Joe Pederzolli - Alma Strategic Communications

Eric

[onjohn] 03/4/2024 06:54

Might buy itv instead on that juicer of a yield and super chart

This one sadly May retest 40p lows

[onjohn] 03/4/2024 06:53

Cash has gone down by 2m since November

Costs look too high now

[rimau1] 03/4/2024 06:47

I think most companies would broadly agree with that 74tom

[74tom] 03/4/2024 06:43

Selective application of AIM buzzwords is getting worse that's for sure. If companies don't want to be measured against forecasts then don't pay brokers to publish them

[rimau1] 03/4/2024 06:37

Agreed, broadly in line is doing a lot of heavy lifting here....

[74tom] 03/4/2024 06:33

Cavendish were forecasting £17m, so they've missed by £0.7m / 4.1%, 'broadly in line' appears to be a stretch

Cash was forecast to close the year at £13.9m, so they appear to be £2m shy of this & firmly into below expectations territory

[masurenguy] 03/4/2024 06:08

FY24 Trading Update and Notice of Results

Calnex anticipates the results for FY24 will be broadly in line with market expectations, with revenues of approximately £16.3m and margins maintained. The Company's cost base has been adjusted, maintaining and focusing R&D spend to capitalise on the opportunities available to Calnex whilst controlling other costs. The Group's balance sheet remains strong, with cash as at 31 March 2024 of £11.9m after investment in working capital in H2.

While the Group's performance has been affected by the well documented ongoing challenges in the telecoms sector, customer engagement levels have remained high, providing confidence that improvement in the telecoms market outlook will result in projects recommencing and customer spending resuming. Calnex is well placed to fulfil orders relating to these projects once activity levels increase. The Board is encouraged by the level of positive engagement with customers on the Group's new product programmes and in particular expects that continued order growth from the defence and cloud computing sectors will enable Calnex to return to growth in FY25.

Positioned for growth in FY25 and beyond

Management has focused the Group's engineering programmes on opportunities showing the most near-term resilience and potential within the Group's established telecoms market and in the newer markets of cloud computing and defence. Within the telecoms market, the engineering programme is focused on the area of 800Gb/s synchronisation testing, an unmet need where there is growing customer demand. The Group anticipates a major new release in H2 FY25 to support leading edge 800Gb/s interface testing. Looking ahead, while the current challenges faced by the telecoms market are anticipated to continue throughout 2024, the Board is confident the transition to 5G and further development of O-RAN will drive a long-term transformation of the global telecoms infrastructure and demand for our lab synchronisation products.

Cloud computing and data centre markets represent growing opportunity

Calnex's newly marketed products focused on the cloud computing and data centre markets, SNE-X, SNE Ignite and NE-ONE, have seen encouraging levels of interest and initial orders. Over the medium term, the cloud computing market represents a significant additional opportunity for Calnex, given the investment into this market to support high growth in Artificial Intelligence (AI), virtual reality and increasing data centre demand. Measurement and testing is critical to performance in these areas. New opportunities are being assessed in network time monitoring, as well as data centre efficiency and effectiveness. The Group has also experienced good order levels for its application assurance offering, NE-ONE, in the defence, government and satellite markets and anticipates this will continue in FY25.

To maximise these opportunities, the Company is optimising its market approach for its suite of cloud focused offerings, bringing together its cloud infrastructure and cloud application teams, with a view to developing a consistent additional revenue stream.

Tommy Cook, Chief Executive Officer and founder of Calnex, said: "In the face of a challenging telecoms market we have successfully adjusted the focus of our engineering programmes towards the markets showing the most resilience and opportunity, with positive customer conversations taking place across each of our new product programmes. The cloud computing market in particular represents an increasingly exciting opportunity and with the long-term growth drivers in the telecoms market remaining intact, we are well placed to return to growth in FY25 and beyond."

The Company intends to announce audited results for the Y/E 31 March 2024 on 21 May 2024.

[2bluelynn] 06/3/2024 16:38

Shame it hasn't moved the share price . I wonder where this will settle 60 pence ? Any ideas any one Thanks in advance

[masurenguy] 05/3/2024 08:03

The Spirent news should have positive vibes for Calnex. This may not immediately have a significant impact on the shareprice as trading relations & volumes should not be affected much in the short term.

[mammyoko] 05/3/2024 07:42

From the annual report

The Board believes that the Spirent throughput in FY23 is not indicative of the Group’s reliance on Spirent for revenues and that Calnex has strong direct relationships with the relevant end users. In addition, all products are branded as Calnex products when they are sold through Spirent and customers are fully aware that they are buying a Calnex product through the Spirent channel.
The Group has changed channel partners multiple times in the past and has managed this process with little disruption to trading.
FY23 saw a reinforcement of the commitment by Spirent and Calnex to the ongoing relationship with the signing of an updated distribution agreement.

[hastings] 05/3/2024 07:26

I wonder how the Spirent news will play out for Calnex.

[masurenguy] 31/1/2024 08:18

Calnex panic entices Sanford DeLand’s Burns

The steep fall suffered by network testing technology provider Calnex (CLX) is a classic example of panic selling, says Sanford DeLand manager Eric Burns, who has added to his position. "After several years of stellar growth, brought about by the increasing sophistication of mobile networks, it fell foul of a significant reining in of capital spending, especially in North America. The share price reaction to Calnex is a classic example of… panic selling. It is at such a time investor psychology becomes paramount. Investors are encouraged to take a step back, assess the situation objectively, and consider the long-term fundamentals of the investment." Burns said.

While Burns said market downturns are painful short-term, they also present opportunities and he added to his position as the shares slumped into ‘deep value territory’. Burns holds the stock in his £70m CFP SDL Free Spirit fund, where it was the biggest detractor in December as the shares shed more than 60%. They closed at 77.2p on Tuesday, having clawed back almost 12% over the last week.

[thomasearnshaw] 24/1/2024 09:00

The markets in which we operate in are expected to remain subdued into FY24

[masurenguy] 21/1/2024 00:25

"There is poor news brewing."

Pure speculation. Over the past 3 months the Spirent shareprice has risen by circa 33% whilst the Calnex shareprice has increased by circa 75%. Sentiment suggests that the poor news was already in the price following the negative October update and that the forward prospects remain positive.

[sharesurfer1] 20/1/2024 16:50

Noticeable that spirent have come out to confirm they are on target to meet forecast, however with a year end of March, calnex have said nothing despite being only two months from closing the books.
Given the disgrace of the communications over the trading update, I would have expected the board to have released a statement to show a level of confidence on meeting guidance, and to rebuild trust.

There is poor news brewing.

[2bluelynn] 22/12/2023 12:55

Spirant should buy Calnex good add on and they have the cash to do so

[swiss paul] 22/12/2023 12:20

Spirent in the 250 - CLX is not.

[masurenguy] 22/12/2023 08:13

Spirent up 40% over the past 3 months but Calnex up only 25% over the same timeframe!

[2bluelynn] 13/12/2023 16:24

Thought I would dip my toe in these . Fairly Tight stop

[redartbmud] 12/12/2023 21:09

Routine according to the plan.

red