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Shares of Calnex Solutions (LON: CLX) are trading higher on Tuesday after the company revealed it anticipates revenue for the fiscal year 2021 will be ahead of market expectations.
The telecommunications equipment firm said that the healthy levels of customer spend experienced in the first half of the groups financial year continued into the second half, with no deterioration in operational performance due to the Covid-19 pandemic.
Calnex believes the pandemic may have influenced customer spending patterns, resulting in some revenue being brought forward into FY2021.
“With the long-term underlying growth drivers continuing, as the market transitions to 5G and the widescale adoption of cloud computing progresses, the Board is confident that while industry spending patterns may normalise in FY22, Calnex is well-positioned to deliver its historical growth rates over the long-term,” the group stated.
Due to lower travel and event costs due to Covid-19 restrictions, higher margins are expected to be achieved in FY21 than initially anticipated, resulting in Calnex's profitability being ahead of market expectations.
“While we have now started to see some signs that this early pull through of orders is reverting to more normal levels, we anticipate entering FY22 with a healthy order book,” said Calnex Founder and CEO, Tommy Cook.
Calnex shares are currently trading over 5% higher at 124p after initially reaching 133p earlier in the session.
Should you invest in Calnex Solutions shares? Calnex Solutions shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Calnex Solutions shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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