Anite H1 revenues rise despite challenging wireless market

2nd Dec 2014 12:10

Anite, a software solutions provider, said its half year results were in line with expectations despite difficult market conditions.Revenues were up 3% to £49.0m. As a result, adjusted profits before tax doubled from £2.5m to £5.1m.The company said strong demand from Asia Pacific offset weakness in the other regions during the period.Earnings per share improved to 0.2p from a loss of 0.5p in the year before, while cash and equivalents rose significantly to £29.8m from £11.7m.However, Anite said the wireless industry is facing challenging market conditions with some areas of reduced demand. It noted Chinese competitors are growing their presence and impacting traditional tier one handset manufacturers.Its network testing division saw a pickup in demand after a slow start of the year. The division was impacted by a 6% weakening of the euro against sterling.Chief executive Christopher Humphrey said: "After a relatively slow start to the year, we finished the period with encouraging momentum building in both businesses."Specific sales opportunities are developing well and give us confidence for the year as a whole as we enter this seasonally important trading period."Investec analysts said: "With a still challenging market backdrop, we see an element of modest forecast risk." The broker gave a 'hold' recommendation and placed their target price under review.Shares were down 0.79% to 75.15p at 11:46 on Tuesday.