Good morning. Welcome to Spirent's 2022 full year results presentation. Please take a moment to review our safe harbor statement. I'm excited about the opportunity to discuss our results with you. 2022 is another year of strong execution, despite a more challenging macro environment. Paula will take you through the financials as usual, then I'll walk you through how we're delivering on our strategy and how the opportunities we see over the medium to long term are well-aligned with strong and diversified market drivers. First, let me set the context and summarize the environment we saw in the last quarter of the year. We'll get into more detail later. 2022 is another year of strong execution of our strategy. All of our enduring end markets remain intact, including 5G, but not only 5G. We're confident that customers remain fully committed to their 5G plans, and I'll be discussing why in more detail later. We built a record order book during the year, laying a strong foundation for 2023 and beyond. Our strong financial platform and operational platform gives us the flexibility to invest, both organically and inorganically to address the attractive market opportunities we see. In Q4, we saw some delays in customers' purchasing decision-making as they responded to the macroeconomic uncertainty by placing all procurement under greater scrutiny. This was particularly pronounced in our lab end markets, especially in the wireless device segment and in some CSPs. We believe that the great majority of the delays we saw in customer projects were just that, delays, not cancellations, because our opportunity pipeline remained strong. After analyzing our own win-loss data for the period, we're confident we didn't lose market share and continued to win against the competition. I also want to emphasize we continued to win key strategic deals throughout Q4 at our largest and most important customers. At Tier 1 service providers and MSOs in North America, leading global NEMs and government contractors for our positioning business. I'll be talking later about what we're hearing from our customers now that we're in Q1 of 2023, and how we're adapting our go-to-market to the current environment. Now I hand you to our CFO, Paula Bell, to go over the numbers. Thanks, Eric. Good morning, all. Right. Let me take you through our full year results for 2022. We delivered a strong performance overall in the year with a further 7% growth in our order book and revenue growth of 5%. Strong cost management meant we were able to give good growth in earnings, as you can see here. Operating profit up 9%. On the back of good tax management and bank interest income, EPS was up 14%. We continued to focus on cash collections and optimizing customer payment terms on bids. Free cash flow was strong once again. We propose a 12% increase to the dividend. For our U.K. investors, this represents a 24% increase in sterling, reflecting our confidence in our midterm outlook, which remains unchanged. It's worth mentioning, too, that we've been growing our ordinary dividend by double digits since 2018, creating good returns for our shareholders. We've updated our performance trend data shown here. As you can see, very strong progress since 2017. Average revenue growth of 6% over this time frame has delivered some good operating leverage. As we expected, we did see a slight drop in gross margin resulting from increased component costs, but we easily made up for that with OpEx management, which I'll walk you through shortly. We delivered a strong operating margin again, now over 21%. In taking our whole financial progress into account, EPS growth over time averaged 20%. We set out a few years ago now to deliver sustained revenue growth. To do that, we focused on a clear strategy to drive stickier business with our customers, supporting them with their key projects such as 5G rollouts. We do believe our portfolio does not contain anything like the technical cyclicality risk hampering progress pre-2016. Today, we are seeing some customers reassessing their 2023 investment profiles due to macroeconomic pressures, whilst remaining committed to their important 5G plans. Let's look at the figures in a little bit more detail here. The order book, which is orders received but not yet taken to revenue, and some call it backlog, grew again in 2022. Even on the back of a huge increase in 2021, clearly driven by a strong comparative year for orders in the same year, 2021. Order intake is $625 million, still larger than the annual revenue of $607.5 million, thus creating a book-to-bill ratio of 1.03. I've mentioned the slight gross margin reduction shown here, and this is offset with some great work on managing our costs effectively. Component price increases are slowing, then 72% represents a realistic estimate for the new financial year. Looking at operating costs here at $307 million, you can see they're flat compared to the previous year. We worked hard to mitigate cost inflation. In late 2021, we commenced a plan to transfer some of our more costly U.S. engineering resource to lower cost regions. We set up a new facility in Romania and expanded our base in India. Operating profit reached $ 129.5 million, slightly up on market consensus and driving a good operating margin. Profit before tax at $ 114.6 million was also up 11% in the period. Tax came in slightly better due to benefits of our U.K. Patent Box. We note the U.K. tax rate increases to 25% occurring in this year in 2023, and our estimate of our tax rate at around 15% in the near term remains unchanged. Cash remains strong with good cash conversion and positions us well as we focus on acquisition opportunities as a priority. Turning to the performance of our segments. Lifecycle Service Assurance, this segment was directly impacted by customer spending delays, as Eric mentioned earlier. We continue to invest to develop the much-needed assurance solutions our customers require for their 5G rollouts. Due to order timing challenges, we were unable to drive the top line as much as we planned by the cutoff point, i.e., the end of the financial year. Both Connected Devices and Wi-Fi also making up this segment perform well. The acquisition of octoScope, made in March 2021, has been fully integrated, is performing to plan as the clear market leader in the Wi-Fi test space and growing nicely. In Networks & Security, strong momentum continued through the second half of the year. We delivered 9% revenue growth as demand for high-speed Ethernet testing was strong on the back of customers moving their data centers to the cloud and generally heavier data traffic. Excuse me. Our global engineering site strategy to increase resource in lower cost regions, as I mentioned, mainly benefited our high-speed Ethernet business. Good revenue growth together with good effective cost management resulted in a material growth in profit. Our GNSS positioning business released some new products and made some good progress in the year also. As you can see here, corporate costs were similar to last year. A bit more color here on the makeup of our revenue. Diversification remains robust. Top 10 customers equate to 36% of revenue, broadly consistent with previous years. In addition to the usual financial metrics I have shared so far, we also carefully measure a number of focus areas representing KPIs that our strategy is working. Selling into the live network of 15%, live solutions mean more software, more attractive gross margin. Lab sales were the area affected by customer spending delays. Services grew 13% as we look to incorporate more of these support activities into our offerings. We previously explained our focus on hyperscalers, and although starting from a small base, revenue growth was delivered here also. Again, we won more multi-year deals, constantly feeding the order book with revenue that is beyond the current year. I've updated the chart here on bigger deals, as we show how we move to our selling larger solutions. It's really gained traction here. This analysis was for deals over $1 million. In 2017, we delivered 28 deals worth $67 million, and in 2022, that increased to 78 deals worth over $184 million. In this economic environment, as customers scrutinize their spend, we have implemented enhanced approvals. Now we have to adapt our value proposition to reinforce the financial benefits our solutions bring, and in some instances, go smaller in deal size to get faster traction. We introduced the order book metric at our last full year presentation, and I've updated it here. Order book continues to grow even from the half year point. In 2021, the order book grew 30% and a further 7% in 2022. We do now have a record order book. How will the order book unwind? Around 30% is due for delivery beyond 2023, which is a greater proportion than we saw at the close of the previous year, which was 21%. We are building strength, visibility and resilience in our business model. Right, let's take a look at costs. As you know, we keep a tight rein on all of our costs as we grow. We invest with a very targeted approach. In a world of increasing cost inflation, we are managing this very carefully. We continue to ensure our products remain relevant and first to market and take share where we can. We've been busy targeting releases of important new products across the whole portfolio. Product development costs reduced year-over-year due to our engineering global site strategy. We constantly look to drive optimal productivity where we can. We continue to invest in sales and marketing. It's important we reach maximum customer base with our technologies, and we continue to focus on key accounts. We've added two more in the year 2022. Sales commissions were lower in the year as orders pushed out. Admin costs increased compared to the prior period. We are implementing new systems to standardize time recording and analysis across the group. The more we scale our business, the more important it is to standardize processes. Other costs include insurance fees, advisory fees for increasing compliance regulations. Overall, we start the new financial year with a well-managed cost base, which is mostly people-related. Inflation assumption and pay rises were broadly 5% across the global workforce for 2023, and we have initiatives planned to mitigate around half of that increase. We move to the next phase of our review of our organization, maximizing benefits from lower cost regions, reducing headcount from consolidating activities, whilst we continue to focus on, importantly, leading-edge product development. I'm gonna talk a few moments about pensions. We've actually done a really great job this year, 2022, removing material risk from our balance sheet. Our main pension scheme in the U.K. with nearly 1,400 members is reaching maturity. We took advantage of some favorable pricing in the market and have secured GBP 166 million of pension liabilities with one of the leading pension insurance buy-in specialists, meaning funding contributions cease and the risk to asset returns, interest, and inflation has been removed. We do have a remaining very small U.K. pension scheme left, which we are also looking to insure. This is great news, a huge piece of work, and implemented well. Turning to cash, we maintain a strong balance sheet, closed the year with nearly $ 210 million of cash. Cash conversion is strong again, 91%. Working capital increased slightly. Strong debtors collection more than offset increased inventory. We're managing the supply chain challenges which appear to be easing. Pension contributions much reduced as the scheme reaches self-sufficiency and shows a surplus. Tax payments, as I explained at the half year point, in 2017, the U.S. Senate agreed new rules which came into effect a few months ago. R&D costs were allowed to be deferred over five years. This is being removed, resulting in accelerated tax payments. This had the impact of an extra $12 million payments this financial year. No impact to the effective tax rate. The other item to note is our employee share ownership. Quite frankly, we took the opportunity to buy up more shares for our long-term remuneration schemes. To summarize, strong cash conversion, good balance sheet, strong cash balance. With regard to capital allocation, we remain committed to focusing on acquisitions. Medium-term targets. There is no change to our midterm targets as presented here. We just need to manage carefully the near-term challenges. We are navigating choppy waters right now in an uncertain environment. Although our customers have confirmed they remain committed to their strategic programs, they are reassessing their near-term spending profiles. Whilst this duration is difficult to predict, we estimate the next few quarters will be impacted. To summarize, we closed 2022 with a record order book. We will continue to focus on customer pain points and help them invest in their own products, in our products, sorry, and solutions to help them drive improved savings in their own businesses. Our financial management remains strong. We respond to external challenges proactively, taking cost actions and sustaining our focus on cash management as we always have. Looking forward into 2023, i.e., the uncertain near term, as customers firm up their spending budgets much later in this calendar year, we don't expect to see a spring back in demand for our Lifecycle Service Assurance products until the second half. This timing will likely restrict revenue this financial year. We anticipate both high-speed Ethernet and positioning, i.e., our Networks & Security segment, will continue to be a stable contributor to growth at their market growth rates of low single digits. Overall, the financial year 2023, the first half will be very challenging, and we anticipate slight revenue decline in the full year. With that, let me hand you back to Eric. Thank you, Paula. A strong set of results despite the environment. As I said at the outset, I now want to spend some time looking at how we're delivering on our strategy, discuss what we're hearing from our customers, and providing more context for why we believe our strategy is robust and sustainable over the medium to long term. Let me begin with a quick reminder of our strategy, which we've aligned with the opportunities available to us and which allows us to take full advantage of them. On the left-hand side is the Spirent of yesterday. We sold products and mostly hardware. Our customer base was mainly network equipment manufacturers and service providers who used our products in their test labs to validate technologies prior to the commercial deployment. Spirent today is a very different company. We're selling more solutions, services, and software to a more diverse range of customers addressing their larger, most critical business problems. While we remain leaders in lab testing, we're also pushing further into their live networks and adding value across the customer lifecycle. All this makes us a closer and more strategic partner to our customers, while helping us to reduce cyclicality and improve visibility in our business. The market drivers I discussed with you during our first half results announcement remain in place. 5G remains our number one growth driver, and it's still early days for 5G globally. I'll talk more about where we are in the 5G journey in a moment. With our diverse portfolio of solutions and services, the drivers of the markets we address extend well beyond 5G. The worldwide shift to work from anywhere is now an irreversible trend, the performance and security of fixed, mobile, and satellite broadband, including Wi-Fi, remain as important as ever. The emergence of the metaverse, the idea of a shared, decentralized, and digital space that exists beyond the real world continues driving, among many other things, the need to test and assure augmented and virtual reality devices and platforms, as well as the latency performance of 5G networks. Despite some widely republicized layoffs, hyperscalers remain huge industry players with a growing focus on the telco space, aiming to take share in 5G core networks, edge computing, Open RAN, and private networks, while needing to expand their own data centers with higher speed Ethernet, including 800G. Finally, location awareness is a key enabler in innovation and devices, drones, transportation, many other applications which rely not only on satellite systems to determine location, but increasingly make use of other sensors, such as inertial as well. What customer impacts are we seeing and how are we responding? We maintain very close relations with our customers, and we continue to seek their input. We just completed an independent customer survey which indicated, not surprisingly, that their current priorities are mainly centered around customer experience, churn reduction, and cost efficiency. While customer budgets remain largely intact, there's no doubt that spending is being scrutinized much more heavily. The business case associated with each investment is subject to greater scrutiny at more senior levels, which has been delaying some purchasing approvals. With the intense focus on time to revenue, customer projects are getting shorter, so investments must generate a high level of ROI and address their most critical pain points. There's also greater demand for creative buying approaches to address near-term needs and stretch their budgets. We also validated that Spirent remains a trusted partner. Our customers appreciate our innovative products and solutions and rely on us as an agnostic evaluator of diverse technologies. In response to this feedback, we're decisively adapting our go-to-market approach to the 2023 budget realities, ensuring that our products and solutions have the strongest value propositions, that we have commercial models to fit today's environment, and that our customer-facing organization is able to clearly demonstrate and deliver strong customer ROI. We always mention the importance of the 5G market driver to Spirent, so let's remind you of where we are in the 5G journey. We're basically transitioning from the early 5G phase, known as Non-Standalone 5G, where deployment of 5G radios has provided subscribers with faster access speeds. We're now moving into the maturing 5G phase, where the true value of 5G, with its potential for higher revenue use cases and applications, is unleashed. The key element of this is 5G Standalone, or 5G SA, which uses a new 5G core network. This brings with it the challenges of deploying and managing a disaggregated, virtualized, and cloud-native network with more intelligence moved to the edge to provide much better latency performance for new 5G use cases, all of which provides opportunities for Spirent to help our customers along their journey. The number of commercial 5G Standalone deployments is forecasted to more than double in 2023. This is also a year where we expect to see O-RAN, Open RAN or O-RAN, take a significant share of the radio access market, and more on this in just a moment. We see 5G as an enduring driver since industry standards will continue to evolve throughout this decade and beyond to support new use cases and new economies, while networks pursue the goal of full autonomy through automation, AI, and ML. While we have seen many investment delays in recent months, while we may have seen some investment delays in recent months, 5G spend really is nondiscretionary since operators have committed and continue to commit to very large investments in 5G spectrum and network infrastructure. For a relatively minor incremental investment, 5G Standalone enables the exciting revenue potential and cost savings opportunities for operators. There are opportunities for Spirent across the 5G life cycle. We've already been addressing our customers' challenges as they deploy and validate 5G technologies in the lab. As I mentioned earlier, 5G, and particularly 5G Standalone, brings with it the challenges of deploying, orchestrating, and developing a disaggregated and virtualized network requiring new operating models and processes. With our comprehensive portfolio of solutions and services, we've been able to help customers globally along that journey. Monetizing 5G requires agility in the development and deployment of new services and enhanced network capabilities that provide an excellent customer experience and help minimize customer churn. This new agile model makes use of continuous integration, continuous delivery, and continuous test, which we support and enable. Addressing more live network opportunities has meant evolving our own go-to-market to reflect the changing customer buying centers through the technology life cycle as technologies move from lab to pre-deployment, deployment, and finally into operation. Let's pivot to some of our big win stories from 2022, which provide excellent proof points of our ability to support customers across the globe in their technology journey. First, a top-tier Indian network provider committed itself to deploying the nation's first 5G Standalone network. They turned to Spirent with its Test as a Service capabilities and unique testing tools to provide a managed solution that delivers and automates the customer's test requirements for its 5G core network, cloud infrastructure, and security, and that can be rapidly delivered and scaled as required. In Japan, NTT DOCOMO developed a test bed for its 5G Open RAN ecosystem to promote the interoperability and commercialization of O-RAN solutions. DOCOMO reached out to Spirent for its world-leading emulation capabilities, which are now at the heart of the test bed, enabling interoperability and performance testing, and providing confidence that the commercial O-RAN deployments will perform as expected. One of Europe's leading service providers needed to move its own 5G core network cloud platform to accelerate its 5G Standalone evolution while swapping out much of its existing infrastructure hardware with solutions from new suppliers. To address these needs, Spirent helped deploy a Test as a Service solution that leveraged the provider's existing Spirent test assets, along with our VisionWorks solution for pre-production infrastructure validation and Active Assurance testing, which provided us with an important live network win in Europe. Our focus on closing larger multi-year deals in our core market also continues to bear fruit. At a leading global equipment manufacturer customer, we worked over a long period of time to earn trusted advisor status. This, coupled with our 800G Ethernet market leadership, helped secure almost 100% of the customer's 800G and other high-speed Ethernet test spend through 2023. As part of this multi-million dollar bundle deal, our evolving and compelling cloud and security story helped us secure Spirent's first major security solution win in the account as well. At a time when budgets are under increasing pressure, O-RAN's objectives are great for the industry to increase the competition and innovation while lowering costs with its open, standardized interfaces and software-defined radio access network architectures. The success of O-RAN will be highly dependent on whether it can perform at least as well as traditional radio, close feature gaps, and achieve simple plug-and-play interoperability. It's creating new and complex dynamics in testing compared with traditional RAN approaches, with the need to integrate multi-vendor systems, placing a greater testing burden on network operators, and providing new opportunities for Spirent across the life cycle and ecosystem. From a very low base, O-RAN growth started to take off in 2022 and is expected to accelerate in 2023, with O-RAN forecast to capture up to 10% of the global RAN spend this year. Beginning in the second half of 2022, Spirent introduced a complete suite of integrated and automated O-RAN test solutions, helping vendors and their network operator customers accelerate development, and deployment of O-RAN systems with a higher level of confidence in their performance and robustness. I'd now like to turn to the results of our operating divisions, starting with Lifecycle Service Assurance. Our strategy of focusing on live network opportunities was validated by double-digit growth in our live network services and assurance solutions. We saw softness in Q4, mainly in lab, and especially in the devices segment, mainly as a result of order delays. As reported during our half-year presentation, we released Vantage to broaden our addressable live market beyond top-tier service providers targeted by our existing VisionWorks service assurance solution. We also introduced solutions that I described earlier to address the emerging O-RAN market opportunity. We saw multiple wins for our quote as-a-service offerings in 2022, helping to increase our average deal size and significantly expanding our services footprint outside North America. Our leadership in Ethernet test has been a key pillar for Spirent for more than two decades, and that business made a significant contribution with strong growth on the back of early 800G wins, acceleration in 400G as we released a new test platform, and robust demand for lower support speeds, such as 100G, driven by backbone network upgrades as data growth continued. We released new application performance and cybersecurity solutions, including the industry's fastest application testing platform, which drove order growth in the second half, as well as a strong opportunity pipeline for 2023. Our positioning business saw expanded success in the space, automotive chipset, and device segments. A reminder that our services strategy is all about adding unique value around our products, where our products remain our key differentiator. Successful execution of this strategy was shown by double-digit growth across our services portfolio and larger average deal sizes. Services also provided us with an excellent opportunity to address customer demand for OpEx efficiencies. We focused on alignment of our organization and optimizing our tools and processes to enable us to scale services globally from proposal all the way through delivery. Our services key wins weren't only in North America. We saw multiple strategic wins in EMEA and the APAC regions as we helped service providers with their 5G journey. We're committed to the highest standards of environmental management, social practices, and corporate governance in our business and supply chain to help our customers tackle important global sustainability challenges. The focus of that commitment is our Future Positive program. I'm proud to announce some important progress in 2022. We achieved our goal of achieving carbon-neutral status certification for Scope 1, Scope 2, and some Scope 3 emissions. We continue to source 100% of our electricity from renewable sources. We conducted a detailed energy efficiency audit of all our labs during the year to support our long-term carbon and energy reduction targets. We're continuing our policy of site consolidation wherever possible to help reduce our overall carbon footprint. Our automation solutions and services are helping our customers achieve their sustainability goals as we help them automate and consolidate energy-intensive labs and accelerate the adoption of new energy-efficient technologies in their networks. At Spirent, we value, invest in, and empower our employees. I'm proud of the progress we've made in our diversity, equity, and inclusion program. Our employees completed over 1,500 hours of diversity, equity, and inclusion training, helping to raise awareness across the business. We launched a set of clear DE&I metrics to measure the impact of the initiatives we've put in place. With a strong employee value proposition, we were able to perform significantly better than industry benchmarks in terms of talent retention. We further developed our go-to-market capabilities, adding carefully selected key accounts, enhancing our solutions and services selling bench strength, and strengthening our inside sales organization globally to expand our customer base. We continue to improve our organizational structure to better enable solution selling and focus on innovation around leading-edge technologies. Moving into 2023, we plan to further enhance the leadership team, including the appointment of a chief information officer to spearhead the standardization of processes and systems to enable us to scale while supporting our cost efficiency agenda. We'll continue to evaluate all areas to ensure our operating costs are optimized as market conditions evolve. To wrap up, we continued to deliver on our strategy. We saw another year of revenue and profit growth and order book build despite decision-making delays at some customers. Our medium and long-term market drivers remain very attractive with 5G first amongst them, but also with our many diversified drivers beyond 5G. Our strategy of pushing into live networks is delivering results as we saw growth in the live network solutions and services and brought important new solutions such as Vantage to market. Our efficient operating structure and strong balance sheet affords us a high degree of flexibility in growing our business, allowing us to continuing to innovate, invest in R&D, and go to market channels while focusing on select inorganic opportunities that position us for continued growth. We expect a challenging first half, likely will to lead to a slight revenue decline in the fiscal year. The medium-term prospects remain strong. Thank you. With that, we'll take questions from the analysts who are here in person and then move to those that have dialed in on the conference bridge. The conference call will be run by an operator who will provide instructions on how to ask a question for those who are on the line in due course. For all those who wish to listen, please remain on the webcast. Please note the event is being recorded and will be available on the Spirent Investor Relations website. Francois, go ahead. Thank you. I have a couple of questions. The first one is on the visibility that you have. I mean, we are aware that H1 is going to be challenging and something consistent with peers, what they are seeing as well. What's visibility do you have on the recovery in the second half of the year? Maybe do you have any cancellation rate, or what's the cancellation behavior in your order book as well since, you know, end of last year, you know, the delays are spending? That's my first question. Yeah. Good. Well, I think our visibility starts with a strong order book as we reflected. That foundation, you know, coming into 2023 is better than it was 'cause it grew over the course of last year. That's a, you know, a great asset, and it's a product of an intentional strategy that we've adopted over the last few years, right? It's not the effect of supply chain constraints or something else. It's longer-term deals and better visibility that we've built. I think the other thing then that we, you know, it is a bit of an uncertain world at the moment, but the thing that I think is super important in this environment is that we stay very close to our customers. This customer survey that we conducted very recently, we engaged a third party. We wanted to get feedback absolutely as quickly as practical to make sure that, you know, we weren't missing something and we got, you know, the benefit of those insights. One of the really encouraging things about that exercise is they reflected they've never seen an organization move as quickly to organize themselves, to get the customers prepared and ready. It reflected on the depth and the strength of our relations that the customers were willing to engage in the survey on really very, very short notice. We got pretty broad-based input in a very short period of time. We've of course, taken all that input. I reflected some of the key themes. The customers, you know, are very focused, of course, on ROI. We're really going to sharpen up our value propositions. We've already been on a course to sell value and business outcomes. I think that does differentiate us in the way we go to market from some of our competitors. We're going to build even more robust playbooks to really tune into those themes that are so important to our customers. We had a great week last week at Mobile World Congress. We had well over 100 customer meetings over the course of three days. You know, all of this is what, you know, gives us some confidence in sort of the direction of travel with our customers and the visibility as it relates to their ongoing commitment to us and the question around order cancellations. Our order book, nothing has been canceled out of our order book. You know, anything that we've booked, and we've had there remains. I think that's another sign of confidence that anything we've won, customers are counting on us and they're sticking with us, and we're executing well on their behalf. Great. Thank you, Eric. Maybe if we move to the wins that you described in your presentation, you have a few examples that was helpful. Since we know that, again, your competitors are seeing as well an uncertain outlook, can you maybe give us some numbers or describe your market share, you know, conscious about these wins, I mean, how your market share is trading because your competitors are also talking about wins and strategic wins, et cetera. How do you see your market share evolving in this kind of downward market? Maybe what would be interesting as well is to remind us your recurring revenues, you know, today versus two years ago, and if you have any insight on versus your competitors as well would be helpful. Yeah. I'll Maybe I'll tackle kind of the just the market share kind of question, and then Paula, maybe you can comment on recurring revenues and so forth? Yeah, look, we're really proud of these wins. I think it shows some diversity and strength across the portfolio. You see a theme of a couple of very significant Test as a Service wins in the period. You know, this is an area where we think we've got a very unique value proposition relative to our competition. Not only are we leveraging the strength of our products, but we're really partnering with our customers, engaging with them to take a broader kind of responsibility and accountability to deliver value in business outcomes for them in that process. The O-RAN win that we highlighted, we see O-RAN as being, you know, you know, a significant growth driver and a great new opportunity for us to participate in. We, the O-RAN offering that we built, we think is the only real end-to-end comprehensive O-RAN test solution in the market. We've got a single user interface to really manage that end-to-end testing process. You know, it's sort of impossible at this stage to measure, you know, market share around that because it's so new and it's so nascent, but we think we've got a great product that we're really going to push into this year. Around, you know, the other win that reflects, you know, strength in 800G and our security solutions, we feel like we're winning very important strategic high ground around 800G. You saw the strength of our Networks & Security segment in total. The high-speed Ethernet testing portion of that, you know, performed very nicely last year. It was across many vectors, winning key deals, and important footholds around 800G, some pickup in volume in 400G, continued strength in legacy port speeds of 100G and even 10G, as more applications are moving to the edge of networks as well. It is a little difficult to measure market share in each of these segments, and you know, and we compete in a variety of different end markets, of course. The thing that gives us confidence is when we look at win-loss rates, we still enjoy a very high win rate. The thing that as I reflected on, you know, I guess concerns us the most, given the macroeconomic environment, is customers just delaying decisions. There it goes back to, you know, sharpening our focus on value propositions, in some case, providing, you know, flexible commercial models that fit within budget envelopes and in rightsizing our deal offerings. Even as we've gone on a path very intentionally of trying to sell bigger, longer-term, multi-year deals, I think we're going to need to accept, in some instances, getting a smaller initial deal, but just getting the win, adding customer value, and then landing and expanding from there. That, that's very much the mindset that we've adopted and the approach that we're going to take in engaging with our customers. Paula, you want to talk just about kind of recurring revenue? Yeah, sure. A very important question. You know, we don't have, if we think of recurring revenue as pure subscription, and not a lot of our business is pure subscription. What's the best next alternative? We're looking for longer-term stickier business with our customers. We had to go away and think about, well, how do we achieve that? We've had a very clear strategy focusing on Live Assurance, focusing on software, and focusing on services, which have all grown in the year. What are the true financial metrics that help us decide that we're actually building some form of recurring revenue? Well, indeed, those financial metrics are around the order book and the content. The order book growth, the multiyear content within the order book, feeding much future work beyond 2023 is another great indicator. The other side that we introduce is deal size. Again, larger, longer deals is a good metric to try and give credibility to our metric for recurring revenue. We don't have a pure subscription, but that's the metrics that we focus on to get heavy, sticky, longer business, yeah. Great. Last one, if I may, sneak one on the cost side. I mean, obviously, we have inflation, like you described, Paula, and the 5% impacts, and half of that is gonna be mitigated. Maybe can you elaborate a bit more what's your flexibility here? I mean, what kind of work you are doing on the cost side? Is there any room for maneuver? I mean, can you go a bit more deeper, and what's your flexibility there? Thank you. Yeah. you know, Eric and I review the cost base almost on a surgical basis to understand exactly where we add the next dollar and where we take the next dollar from in terms of maintaining, as a priority, our leading position on R&D is always at the forefront of our minds. However, there is always opportunity to drive for improvement. We are implementing time recording, standardized processing systems across the group, which you mentioned, and we'd love to get some interesting data and information about terms of how we can collaborate more effectively across the group, where we have duplicate engineering activities where we can consolidate and take cost savings. We will continue to expand our lower cost regional model. As I mentioned, Romania and India is lower cost than some parts of our North American operations, which gives us opportunity as well. We have quite a proactive, agile management team always looking for ideas and being open-minded how to drive that. Excuse me. At the same time, R&D focus is clear. Key account management is something we've invested in in recent years, and it's paying dividend with our customers forming deep relationships, we tend to protect that as well. There's no stone that's left unturned in a cost inflation environment, but we did a lot of the heavy lifting in 2022, where we maintained our cost base to be flat on 2021. We start the year in quite a positive position. We've always got some ideas. Mm-hmm. Any other questions in the room? Janardan, back. Yeah. Just want to go into the O-RAN part because you seem quite excited by that opportunity. When we look from the outside, you know, O-RAN still seems to be a bit of a niche technology adopted by a few sort of niche operators like DISH and Rakuten, et cetera. From a customer point of view, where are you seeing the opportunity? Is it that a lot of operators are doing trials on O-RAN in small geographies like villages, et cetera, and they need your equipment to test that? Or is it from equipment vendors? I just wanna understand, you know, what is the potential size of this market and how do you see that evolve over the next couple of years? Is this the solution where you're partnering with Anritsu? In which case, how is it being divided, the value getting out of it between yourselves and Anritsu? Yeah, sure. We are excited about O-RAN. I'm glad you picked up on that. I would say a little over a year ago, we felt we absolutely needed to make some bets, some investments around O-RAN. At that point in time, I think we were less certain about sort of how we thought the market might evolve. Fast-forward a year, I think we have a lot more confidence that this is gonna be a meaningful part of the overall RAN market. The RAN market globally is huge, right, as you well know. We're projecting O-RAN to maybe command about 10% of the global RAN market spend. I think there were definitely, you know, innovators, disruptors out there early, like, as you reflected, like Rakuten, like DISH. I think this is gonna move, and it is moving much more mainstream. We have many more engagements with large galaxies, you know, some of the large galaxies around the world, some of the big established service providers, who in the same way that the strength and benefit from the core network being opened up, you know, with 5G Standalone, it's the same kind of thing of this is a historically a proprietary part of the architecture that as we open those interfaces, it's gonna breed more innovation, more new competitors flowing in, and lots of benefits around innovation that then ought to accrue and, you know, hopefully, you know, even cost reduction. It does make things more complex, which is why it's good news for companies like ours. The thing that we've done with our O-RAN solution that we think is unique and different is we truly have an end-to-end testing offering. It, it goes back to our strength in the core network, you know, with our, our Landslide, you know, solution is part of this, some of our legacy Connected Devices, you know, components. And we have, you know, we've got some important partnerships out on the radio access side of things. Anritsu, in particular, is offering us RF conformance, which is, I'd say in the whole scheme of things, it, I mean, it's an important part. We've seen it in, you know, different RFPs. It's an important part of the overall equation. We believe our solution, we're gonna still capture, you know, within Spirent, a good amount of the end-to-end value. You're aware some others have kinda just cobbled together, a set of disparate sort of, you know, testing solutions. We've got an integrated user interface and an end-to-end approach that, we think will, you know, give us some good differentiation here. Understood. Thanks. Just going back to the sort of second half recovery. Just wondering from a, you know, from your confidence point of view, where do you think that recovery is more likely to come in terms of products? I mean, is it a question of, you know, some of the discussions on Vantage, for instance, you know, haven't converted into orders as yet, which you might have expected towards Q4, and you would expect those discussions to progress or expand to other customers, and that will start coming in in second half? Is it that, you know, the 5G core testing has weakened last quarter, and that would come first? Is it new products like O-RAN? I'm just wondering, where does your confidence lie the most in terms of, you know, where you would see those signs of recovery or acceleration coming through in the second half of the year? Yeah. I think it's some of each of those things actually, Janardan. You know, when we look at, you know, how we ended 2022 and the outlook for 2023, it is a dynamic environment, as we all know. The Networks & Security segment, when we look inside there, you know, first the positioning business, it's got some different end markets that we serve that are, they're a little uncorrelated to some of the rest of the, you know, the company, actually. That's a beneficial thing. We think that could be a nice pillar of stability for us, in 2023 as well. We have some confidence that we work through a proxy company in the U.S. as we support, you know, the classified programs, you know, for the Department of Defense in the U.S. Defense budgets got set at a high level. We think that, you know, sets a good foundation for us to do well with our proxy company partners. Around high-speed Ethernet testing, again, our outlook there and with the launch of our new security solutions products that we think are best in class in terms of their performance, price performance as well, give us an opportunity to. We don't expect that to grow fast, but at least be in low single-digit growth is the expectation we have on that part of the business. Networks & Security, we think is pretty nicely intact with our traditional expectations. Where we've seen the weakness, it is more isolated around some of the 5G lab testing. We did well in the live side last year and even ahead of Vantage catching hold. I think with the launch of new offerings like O-RAN, like Vantage, and the fact that, you know, when we just think about the broader economics around 5G, there have been tens of billions of dollars spent on spectrum, there have been billions of dollars spent on deploying radios, and there's this sort of thimble full of incremental expense to upgrade a core network to go get all the revenue, interesting, exciting revenue opportunities out of all that investment. It's just nonsensical. Even if it's got some complexity and there's work to do that we're happy to, you know, very happy to help with, it's a necessary step that needs to happen and will happen. You know, as with a lot of big transitions, I think sometimes they come a little later than, you know, than we all hope and expect, but in the end, maybe they end up being bigger than we expected. That's where a lot of the focus is. We've got this great customer engagement. We've got a great foundation of incumbency. We're really gonna, you know, hone, you know, our, you know, our value propositions as we talked about, to really make sure we're meeting customers exactly where they are to try and navigate through these choppy waters. Understood. Just one last question, perhaps of Paula. Your Networks & Security business did extremely well, both in terms of growth and margin last year, and you got to that 25.3% or something, operating margin. Why would that not continue through 2023 and 2024? I mean, barring a big fall in revenue, as long as your revenue is sort of in positive growth territory, as Eric was suggesting it will be, what would prevent it, the margin from staying at around 25%? Is there any investments or anything that you plan which could change that equation? Yeah, it's a great outcome last year, 25%. We're thrilled with the progress of this business over recent years, driven by, in the main, the site strategy and really getting the R&D cost in this business to really be really effective. You know, we'd love to do more of that going forward. I think it sets a great benchmark, and, you know, we'll certainly challenge the team to take that on board as we step forward. There's no particular reason why it can't sustain that level. It'll be I think one of the key assumptions that we have to also make in 2023 is that component price increases have to be passed on to the customers. That would be the risk around that, if you will. We're working hard to make sure that customers understand that, in this environment, that's what we need to do. Should we see if there's any questions on the phone? All right. There are. Oh, There are. Oh, there are. Oh, there are. Ladies and gentlemen, if you'd like to ask a question, please press star followed by one on your telephone keypad now. Our first question is from Kai Korschelt from Canaccord. Kai, your line is now open. Please go ahead. Yeah, thank you. Good morning, both, Eric and Paula. I just had a couple. One really more from a top-down perspective, if I can play sort of devil's advocate, a bit, particularly looking beyond 2023 to look at, you know, the CapEx guidance in the U.S., your largest customer group, I think is sort of, you know, peak last year and down 10%-20%. Appreciate a lot of that goes into RAN equipment in other parts of the network, and then also China, a similar picture. I'm just wondering, you know, what gives you the confidence that beyond the short-term cyclical macro-driven impact that, you know, we, you know, we're not seeing a potentially secular shift downward potentially in generally 5G, you know, activity, because, you know, some of these sort of CapEx numbers, you know, they did coincide with your own revenue trajectory. I'm just kind of curious if you have had any thoughts on that? The second question was around two other, sort of I guess, product areas. I'm not sure I joined late, apologies for that if you mentioned them. Particularly Wi-Fi and then also the sort of up-and-coming activity around extraterrestrial sort of 5G, you know, low earth orbit, R&D. I'm just wondering kind of what, you know, what if any, anything you are seeing in those two areas? Thank you. Yeah, sure. Well, look, as it relates to sort of the longer-term outlook and, you know, our continued confidence in 5G, I think it goes back to a little bit of what I said previously is there's been a mountain of investment made and, you know, there's a need, you know, for service providers to basically still go and earn that return. There's a lot of work left to do to go do that. It starts, I believe, with in a large way around the upgrade to the 5G Standalone, which we're very well positioned to assist with. As they go through that step it enables, you know, a cloud-based and software-based virtualized core network that lends itself needing to be managed by Active Assurance, where we saw excellent growth last year, we think it's just sort of, you know, the beginning phase of networks getting better, you know, more fully utilized. Some of the interesting new applications, particularly enterprise applications that are gonna have tight performance conditions attached to them that need to be measured and managed, giving rise to the need for more and more Active Assurance. We see O-RAN is another, you know, evolution of the standards, where more industry participants are getting on board. We just launched our O-RAN offering and, you know, highlighted a nice win with DOCOMO. We had tremendous engagement with customers at Mobile World Congress around this. Yeah, I think we do remain, you know, optimistic that there's a lot left to come in that regard. Some of the other pillars of our business are still chugging along, you know, at pace. As it relates to Wi-Fi, Wi-Fi performed nicely for us. It grew at a double-digit rate last year. We see good growth potential for Wi-Fi testing with the evolution from Wi-Fi 6, 6E to 7. We think we're very well positioned there, and that's gonna be a nice, you know, small but nice growth engine for us. The evolution of low earth orbit satellites and its participation in 5G, we certainly have engagement, you know, principally with the player, the LEO players with our positioning group. It's, it's a unique capability that we have around GNSS simulation and capabilities that really our competitors don't have. You know, as that evolves, we think we're gonna be nicely positioned, you know, to continue to work and drive some of that exciting opportunity. Thank you. Our next question is from John Karidis from Numis. John, your line is now open. Please go ahead. Thank you, Eric. I had a heart attack when you said there are no questions from the bridge. 'Cause I was dying to ask a few. Firstly, a relatively easy one. When management teams talk about sharpening their offer, the first thing that springs to mind is a price decrease. Can you talk about this please? Also, when you talk about more imaginative commercial structures to meet budgets, does that mean that you're going to consume working capital? Yeah. No, I think I can give you some assurance on both those fronts. When we look at sort of what we've heard from customers, and I think this is a really valuable exercise that we went through, and we blitzed through quickly to get the feedback, and we've got a tiger team that's running with the recommendations and the actions. Sharpening our value propositions is to really make sure we are more clear, and we really equip our sales team with playbooks so they can clearly articulate return on investment and the value of our propositions. Every customer, we've heard those big themes around customer experience, churn reduction, OpEx impact. You know, the idea of sort of discretionary spend isn't happening really, you know, in the same way in this environment. We need to tap into the, you know, the mandatory spend and make sure that. It's not discounting. I mean, the idea here is not to discount. It may be to rightsize our offering and have a smaller package initially, but to not give away all the value either. You know, to rightsize that offering, to be very clear around the value that we're bringing, to tap into those customer pain points. The playbooks are really gonna be designed to, you know, give the rules of the road, to give, you know, kind of clear step-by-steps for, in a given customer situation, this is what we sell, these are the value points that we wanna stress and accentuate. Around commercial flexibility, no, I mean, you know, you know how vigilant Paula is about cash collection and, and the like. Look, if customers want, if they're more comfortable with offerings that are more OpEx related, if it's more pay-as-you-go, we are quite happy to be as flexible as we need to be around meeting the customers where they are in terms of what their budget realities are. It doesn't necessarily mean, and in fact, it doesn't mean, we're going to lend our balance sheet to our much larger customers, but it is, just different commercial approaches. If they don't want, you know, a traditional license model, they want a different approach, we're happy to accommodate, as required. Okay. Thank you. Secondly, I need to drill down more on what was said or what I think was said in January and what is being said today. I think today you basically said it's LSA, it's lab, and it's mainly devices. I think in January, what I heard was that as far as the network operators are concerned, the second-tier guys have finished the lab, and they are waiting or taking their sweet time to go to the deploy stage, and devices weren't mentioned at all. Can you help me bridge this? Clearly, I must have misheard, but please help me. Give me quite a bit more detail, please? Yeah, sure. No, it is mainly LSA, and it is mainly lab where we're seeing the slowness. I think as we reflect our expectations around the Networks & Security segment, I think it reflects that, and we had continued strength and good growth in the live part of the portfolio. I think, you know, it is true that in a way, we're frustrated that the pace of adoption of 5G Standalone hasn't been faster, right? I think it's a necessary step the industry is going to take and has to take and will take, but it's been a little bit slow to evolve and slower than we'd maybe hoped or expected. That's an important driver for us, and there was some weakness amongst, you know, some of the large device makers. I think we've got the right set of actions again, to tap into these themes and to really unlock spending. You know, O-RAN, the O-RAN offering that we talked about contains within it some of our traditional Connected Devices products. We expect that to give, you know, kind of a nice lift there and not just to be selling on sort of a standalone way and the way that we would have in the past. You know, around, you know, 5G and, you know, Landslide, which, you know, is, you know, continues to be the very best core network test and emulation engine in the world. It's at the heart of some of these as-a-service wins that we highlighted last year as well. We're gonna do some very targeted outreach to the customer base that we have 'cause the nice thing about that part of the business as well is we have a very big existing customer base. We're gonna do very targeted campaigns into that customer base for those that haven't yet upgraded to 5G licenses and so forth, you know, to try and stimulate that activity into 2023 as well. As far as the devices are concerned, did I mishear you saying today that it's more devices rather than network operators? Is it more network operators versus devices? If it's more devices, presumably the what was said about the move to standalone 5G doesn't apply to these guys. They can wait longer? It's some of both, John. It really is some of both. Okay. That's great. Thanks very much. Yes. Our next question is from Bharath Nagaraj from Berenberg. Bharath, your line is now open. Please go ahead. Thank you. Just have one quick question. Could you take us through an example timeline of, let's say, if there are new orders for chips, for making Ethernet switches at, let's say, a chip maker, let's say Broadcom, for example, announced some, like, a few years ago? How does that come to ultimately benefit Spirent in terms of new testing orders? Can you take us through the timeline? That's all right. Thank you. I didn't quite get. I'm sorry I missed kind of, I think, the essence of the question. Just to repeat the question, I was wondering if you can take us through the timeline of how if there are new orders for chips, let's say, for making Ethernet switches, let's say, for Broadcom, which announced some of these orders, like, a few days ago. How does that come to benefit Spirent in terms of new orders in the future, new testing orders in the future? Okay. Yeah, no, You know, we've, we felt we really won some important high ground in 2022 around 800G. It wasn't the biggest volume driver yet, where it starts, you know, the chipset makers, of course, influence a lot of the downstream ecosystem. It's important to win with the chipset makers around 800G and high-speed Ethernet in general. We did have significant wins with multiple chipset makers that set, I think, a very good foundation for us around our prospects for 800G. Does that help? Sure. Yeah. Sorry, yeah. Just to follow on. In terms of, like, testing out the network after the Ethernet switches are effectively used for building out a network, what's the timeline that you're looking at, from the time the chipset makers make these orders, right down to where you get the benefit for testing the network out? How much time are we talking about there? Yeah, I got it. Well, I mean, we get immediate benefit, of course, from the orders that we make to the chipset. I mean, that part of the business, there's a pretty quick translation from order to revenue. Yeah. One of the really big wins that we reflected in high-speed Ethernet last year was with a large network equipment maker, and a lot of that's around 800G. You know, we do believe the way the market's gonna evolve is, the hyperscalers ultimately with the amount of data that is, you know, moving to the cloud and between their data centers may be ahead of traditional service providers in pushing to 800G. Mm-hmm. We see markets like China going to higher data rates and port speeds as well. Yeah, it flows, you know, kind of through the ecosystem network equipment makers and then service providers ultimately. it'll be, you know, initially some select service providers that are really driving the highest bandwidths across, you know, kind of backbone networks or data networks that would be early adopters of 800G, we would expect. All right. Thank you. Sure. We currently have no further questions. I'd like to hand back to the CEO, Eric Updyke, for final remarks. Please go ahead. All right. Thank you very much. I hope we've reiterated that we have a lot of confidence in the ongoing prospects and certainly into the midterm in navigating these choppy waters in Spirent. Wanna thank everybody for joining us today. Thanks very much.