Shares of Calnex Solutions took a hit after the company announced that it anticipates falling short of market revenue expectations for fiscal 2024. The London-listed designer and supplier of test products for telecom equipment experienced a significant decline in share price, dropping by 21.1 pence or 22% to 73.5 pence at 1425 GMT.
Calnex Solutions stated on Tuesday that revenue for the year ending March 31 is likely to fall short of market expectations by 20%-30%, contingent upon the timing of orders. While the company did not provide specific financial figures, it reported a pretax profit of £7.2 million ($8.8 million) and revenue of £27.5 million for fiscal 2023.
Despite previous expectations of a cautiously improving outlook for the sector, as indicated in August, Calnex Solutions failed to gain momentum due to certain customers opting to delay projects and associated orders. It is important to note that no customer orders have been canceled, and all orders are expected to be fulfilled once customer project spending delays are eased. Furthermore, the company assures stakeholders that its balance sheet remains robust.
“Though the current telecommunications market outlook presents challenges, our expansion into non-telecommunications areas with our product portfolio and the promising sales pipeline give us confidence in a return to growth by fiscal 2025,” stated Chief Executive Tommy Cook.
Calnex Solutions faces difficulties as it expects to miss market revenue projections for fiscal 2024. Despite these challenges, the company remains optimistic, citing opportunities in non-telecommunications sectors and a strong sales pipeline for future growth.