This announcement contains inside information

1 March 2022

Calnex Solutions plc

("Calnex", the "Company" or the "Group")

Trading Update

Calnex Solutions plc (AIM: CLX), a leading provider of test and measurement solutions for the global telecommunications sector, is pleased to provide an update on trading for the year ending 31 March 2022 ("FY22") and the outlook for the following year to 31 March 2023 ("FY23").

The Board is pleased to report that the strong levels of trading in the first six months of FY22 have continued and it anticipates that, subject to the fulfilment of scheduled orders in March, the Group's performance in FY22 will be in line with market expectations. Furthermore, the Company will begin FY23 with a record order book across all product lines and it is anticipated that revenue and operating profit for FY23 will be materially ahead of market expectations.

Calnex has continued to make good progress on delivering its strategy in FY22.  The Company has experienced high demand for its range of test and measurement solutions, and the introduction of new regulation and standards for the telecoms industry continues to drive demand for Calnex's products.  The Company has successfully managed the challenges of ongoing global semiconductor shortages during the year to minimise the impact on Calnex's ability to manufacture and ship product; however, the Company has experienced reduced availability of certain components in the final quarter of FY22, partly as a result of the level of orders Calnex is being asked to fulfil.  Subject to the fulfilment of certain orders currently scheduled to be shipped in March, the Board expects that the Group's FY22 financial performance will be in line with market expectations.

The strong order book leaves the Company well positioned going into FY23 and the Board expects that revenue and operating profit for FY23 is likely to be materially ahead of current market expectations. The order book includes a significant order from a large data centre customer for delivery of a new, emerging market application in FY23. The Board is currently assessing the opportunities this may create for Calnex within the data centre market.

The Board will provide further guidance on FY23 with the release of its Final Results in May 2022.

Tommy Cook, Founder and CEO of Calnex, said:

"We are highly encouraged by the record level of orders we have received across our customer base, demonstrating the quality of our solutions and their applicability. We anticipate next year will see revenue and profits considerably ahead of initial forecasts, with the potential for further growth should the supply chain issues ease and we are able to capitalise on the significant opportunities within our markets. We remain highly profitable and cash generative and will continue to invest in our offering and people to ensure we are well positioned to continue to capitalise on the growth in the telecoms and cloud computing markets."

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Overview of Calnex

Calnex designs, produces and markets test instrumentation and solutions for network synchronization and network emulation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks.   To date, Calnex has secured and delivered orders to over 600 customer sites in 68 countries across the world. Customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Meta.

Founded in 2006, Calnex is headquartered in Linlithgow, Scotland, with additional locations in Belfast, Northern Ireland and California in the US, supported by sales teams in China and India. Calnex has a global network of partners, providing a worldwide distribution capability.