Linlithgow-based telecoms testing and measurement firm Calnex Solutions plc said it sees “signs of optimism” and a “cautiously improving outlook” as it published an update on trading ahead of its AGM on Wednesday.

Calnex’s customers include BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Meta.

“While customers continue to adopt a cautious approach to investment decisions, engagement levels remain high and there are signs of optimism with regard to the pipeline for H2 FY24, although the precise timing of orders remains unclear,” said the firm.

“Indicators across the wider industry also point to a cautiously improving outlook.

“The board remains confident in the delivery of results for the year in line with current market expectations.

“Calnex continues to focus on expanding its business footprint, through both application focused promotions of existing products, as well as new product innovation.

“The company’s ability to source the components required for its products continues to improve and, whilst not yet resolved, the financial performance of the company in FY24 is not expected to be impacted by procurement issues.

“The board remains confident that the market’s structural growth drivers will continue to drive long-term growth opportunities for Calnex.

“These include the need to build out new mobile networks to support the transition to 5G, and ongoing data centre investment to support the demand for cloud computing and advancements in Artificial Intelligence and Virtual Reality technologies, coupled with the need to be more energy efficient.

“The breadth of the company’s customer base across multiple regions, and the group’s expanding product portfolio and strong balance sheet, mean the Board looks to the future with continued confidence.”