UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 2006
SPIRENT COMMUNICATIONS plc
_____________________________________________________________________
(Translation of registrant's name into English)
Spirent House, Crawley Business Quarter, Fleming Way, Crawley, West Sussex
RH10 9QL, UK.
_____________________________________________________________________
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No X
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
SPIRENT COMMUNICATIONS PLC
RESTRUCTURING ACTIONS
London, UK - 29 June 2006: Following the trading update on 14 June 2006, Spirent
Communications plc ("Spirent") (LSE: SPT; NYSE: SPM), a leading communications
technology company, is today reporting the following restructuring actions in
its Communications businesses.
As previously stated, the Company is managing significant product transition in
the current year:
- within the Performance Analysis Broadband division, as sales of older
platforms decrease and are replaced by the sales of new products; and
- within the Service Assurance division, as legacy product revenues
continue to decline, whilst investment is being made in new monitoring
solutions for voice, video and data networks.
During this transition phase we said that we would continue to carefully manage
the balance between the cost base and maintaining the capability to generate
long term growth.
Accordingly, we are implementing restructuring actions in the Performance
Analysis and Service Assurance divisions to realign resources and reduce
operating expenses. The major part of these actions will take place in the
Service Assurance division, which will enable it to maintain a near break-even
result for the second half of 2006 (following the cost reductions outlined
below, pro forma break-even sales for Service Assurance are estimated to be
GBP36 million per year).
The total annualised cost reduction will be approximately GBP9.0 million per
year. The cost of these actions is a one-time charge of GBP5.0 million of which
GBP4.0 million will be in cash, to be expensed and reported in our forthcoming
interim results on 10 August 2006.
Anders Gustafsson, Chief Executive of Spirent, commenting on the actions, said:
"The main consideration behind these restructuring actions is to ensure that our
resources are allocated appropriately to develop our enhanced products. This
will ensure that we can offer the platforms required by network equipment
manufacturers for the development of their own products, and by service
providers for the deployment of their next-generation networks."
- ends -
Enquiries
Spirent Communications plc +44 (0)1293 767676
Anders Gustafsson, Chief Executive
Eric Hutchinson, Chief Financial Officer
Smithfield +44 (0)20 7360 4900
Reg Hoare/Katie Hunt/Libby Young
About Spirent Communications plc
Spirent Communications plc is a leading communications technology company
focused on delivering innovative systems and services to meet the needs of
customers worldwide. We are a global provider of performance analysis and
service assurance solutions that enable the development and deployment of
next-generation networking technologies such as broadband services, Internet
telephony, 3G wireless and web applications and security testing. The Systems
group develops power control systems for specialist electrical vehicles in the
mobility and industrial markets. Further information about Spirent
Communications plc can be found at www.spirent.com.
Spirent Communications plc Ordinary shares are traded on the London Stock
Exchange (ticker: SPT) and on the New York Stock Exchange (ticker: SPM; CUSIP
number: 84856M209) in the form of American Depositary Shares ("ADS"),
represented by American Depositary Receipts, with one ADS representing four
Ordinary shares.
Spirent and the Spirent logo are trademarks or registered trademarks of Spirent
Communications plc. All other trademarks or registered trademarks mentioned
herein are held by their respective companies. All rights reserved.
This press release may contain forward-looking statements that are based on
current expectations or beliefs, as well as assumptions about future events. By
their nature, forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. You should not place undue reliance
on these forward-looking statements, which are not a guarantee of future
performance and are subject to factors that could cause our actual results to
differ materially from those expressed or implied by these statements. These
risks include the risks described from time to time in Spirent Communications
plc's Securities and Exchange Commission periodic reports and filings. The
Company undertakes no obligation to update any forward-looking statements
contained in this press release, whether as a result of new information, future
events or otherwise.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
______LUKE THOMAS______
(Registrant)
Date _29 June 2006 By ____/s/ Luke Thomas____
(Signature)*