Calnex Solutions Share Discussion Threads

[doctor888] 23/11/2021 08:22

'Can anyone explain to me why the OCF has not accounted for tax? My understanding is that OCF is calculated from profit after tax, not profit before tax.'

I queried this in the meeting - CLX are not yet paying tax yet.

[rivaldo] 23/11/2021 08:08

Cenkos have updated today and summarise as follows, retaining the recently increased forecasts

"Calnex Solutions plc Keeping time with growth – Interims update

In line with the October trading update, Calnex has reported a c20%
increase in revenue to £9.3m for H1/22 (H1/21: £7.7m) following substantial demand for telecoms testing equipment and strong levels of trading in H1/22. This strong trading has continued into H2/22. Investment in product development and operational scalability has been increased with the strong cash position enabling Calnex to accelerate investment and expand capacity in line with the growth in the order pipeline."

"Outlook.

With the telecom infrastructure, networking and services markets seeing
an expanding number of market participants requiring testing solutions, the growth
outlook for Calnex remains secure. Following the maiden interim dividend of 0.28p,
we forecast 0.56p in total for FY22E. The order backlog at H1/22 and strong order
pipeline for H2/22E should drive further revenue growth for FY22E and FY23E."

[hastings] 23/11/2021 08:07

Happy with the results and direction/prospects. Speaking with management this morning and will add a write up in due course for interest.

[hew] 23/11/2021 08:01

Ints show clear emphasis on building a high quality and growing platform for good things in the future. As the TU so I don't expect any fireworks today.

[johndoe23] 23/11/2021 07:44

Agreed. Market is unforgiving at the moment!Long term, everything in place here...

[multibagger] 23/11/2021 07:28

Good morning all :)

A good set of results but I think the market will be "cautious" and mark it down....let's wait and see what happens !

Hope I am wrong :)

[rivaldo] 23/11/2021 07:22

That's a very, very confident set of interims - the CEO is unusually bullish.

In particular, "The Board is confident in meeting the upgraded market forecasts for the year", i.e 5p EPS, so H2 will be expected to produce almost 3p EPS and trading on a run-rate of around 6p EPS per annum.

Plus CLX have almost 12% of their m/cap in a cash pile - strip this out and the P/E looks pretty good value for a tech company riding the 5G and telecoms wave.

Despite revenues being 20% up year on year, some might balk at PBT being flat and EPS down, but of course that's due to a particularly high investment phase for the future which we were already aware of (and which has produced the products now selling so well).

[masurenguy] 23/11/2021 07:07

Interim Results

Looking good with sales up 20%, profit up 18%, eps virtually flat and cash up 66% ! No impact to date from the global semiconductor shortage. A considerable market opportunity lies within the role that 5G has to play in supporting introduction of new services, such as autonomous vehicles, mobile phones and smart devices, that need higher quality connections. The testing market continues to increase with the growth in the number of data centres operated by enterprise and hyperscale companies.

Tommy Cook, Chief Executive Officer, and founder of Calnex, said: "These results mark another considerable step forward for Calnex, as we continue to capitalise on the global telecom industry's transition to 5G and the growth of cloud computing. The results for the first half of FY22 are materially ahead of the Board's expectations at the start of the year, as indicated in the Company's Trading Update issued in October 2021, and confidence levels remain high with the early signs being that sales momentum will continue in the second half of the year . We have invested in our team and resources and the continued positive response to the new product launches provides optimism towards the long-term demand for our offering. The breadth of our customer base across multiple regions, combined with the ongoing successful expansion of the team, our customer relationships and industry connections, places us in a strong position to continue to benefit from the underlying market growth drivers in the telecoms market."

[johndoe23] 21/11/2021 11:39

Interims on Tuesday, anyone with any thoughts on what EPS might come in at?Personally hoping for at least 2.5p, 3p would be great!

[tole] 17/11/2021 17:09

https://www.fool.co.uk/2021/11/17/this-share-should-be-able-to-maintain-its-momentum-and-grow-rapidly/

[doctor888] 12/11/2021 20:12

In Feb, the board said they were 'ahead of expectations' and revenues were 17% above Cenkos' estimates. Last month, they say they are 'materially ahead...' Any views on the difference between 'ahead of expectations' and 'materially ahead of expectations'? 17% seems a lot to me.

[gerihatrick] 11/11/2021 08:46

Dish is a client of ENET and these results also reflect on the wider applications of 5G for ENET.

[rivaldo] 11/11/2021 07:40

A strong Q3 trading update from major client Spirent this morning:



"We are pleased to report continued momentum and the Board remains confident that the Group will show solid progress in 2021."

"Once again, 5G continues to be a strong driver of growth in demand across our solution portfolio."

"Lifecycle Service Assurance

Strong momentum and demand for products in both the lab and the live assurance market resulted in good order growth in the third quarter. We continue to secure multi-year contracts increasing longer term visibility.

Key wins included a large and strategic 5G order from Dish Networks, an innovative new North American network operator that plans to become the first telecom company to run its service on the public cloud. Dish will be utilising both our lab-based and live network solutions to autonomously test and validate its 5G network core.

Networks & Security

....application and security testing is gathering momentum as we continue to support customers to develop their 5G infrastructure and has delivered growth year to date compared to the prior year. We have made good progress in growing our business with the Hyperscalers by focusing on their 5G initiatives."

[rivaldo] 10/11/2021 07:22

H1 results now confirmed for 23rd November - good to see an Investor Meet presentation as well as the one for analysts.

We already know the H1 results will be excellent and the outlook is "materially ahead of previous expectations"....

[rivaldo] 03/11/2021 09:35

More new highs, and buying coming in at the now full 152p offer price....

[petewy] 01/11/2021 10:19

Up another 5p sustaining take-off. (wow)...a slight drop

[rivaldo] 31/10/2021 07:25

Nice close, and new highs, on Friday afternoon....

[apad] 27/10/2021 11:05

I liked the 120 staff target - a tangible measure of confidence.

apad

ps 3rd generation 5G will be an entirely different animal to 1st generation

[petewy] 27/10/2021 10:40

Thanks all. Much appreciated.

[rivaldo] 27/10/2021 09:41

Thanks for the links iamnotanumber6 and Mas. I'm glad I asked - what a terrific article!

The same sentence stood out to me Mas. "Never-ending" growth is not a phrase you see too often. Especially from a usually cautious guy like Tommy Cook.

There's other great quotes about the coming 6G and what will be happening over the next 10 years, along with the huge potential for CLX in data centres, and the likelihood of further, and larger, acquisitions.

Plus the move to hybrid working for the entire workforce could lead to quite a material reduction in costs/overheads.

This is now looking like the kind of growth story I hoped for when I started this thread at IPO.

[masurenguy] 27/10/2021 09:00

Hi Richard, as Fred Flintstone would say - if he was invested here of course - Yabba Dabba Do !!! 😄

[dicktrade] 27/10/2021 08:59

Mas,

Thanks for that, very intetesting and hopefully very positive.
CLX flying this morning .

Richard

[masurenguy] 27/10/2021 08:08

Here it is - I like this Tommy Cook quote: "New technology needs more testing and new test equipment. It looks like it's going to be never-ending for us until I get my retirement plan kicked into action and long beyond it."

[iamnotanumber6] 26/10/2021 23:04

(remember to change the "hxxps")

[iamnotanumber6] 26/10/2021 23:03

Hi Rivaldo. Here's a crafty tip for reading articles behind a paywall: copy and paste the headline into google, and you can often find a "back door" - not always though! But in this case: hxxps://www.pressreader.com/uk/the-herald-1130/20211025/282299618375105