News Column

Filtronic Confident On Prospects, Despite Swing To Loss

July 28, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Filtronic PLC Monday expressed confidence in its future prospects, even though it swung to a pretax loss in the year to end-March due to a dip in revenue as a project completed.

Filtronic designs and manufactures microwave electronics products. It principally operates in two businesses: wireless and broadband.

The company posted a pretax loss of GBP3.6 million for its last financial year, compared with a profit of GBP238,000 a year earlier, as revenue declined to GBP32.9 million from GBP40.0 million. Filtronic said the dip in revenue was due to the conclusion of a significant project to deliver 4G interference mitigation filters, as well as longer lead times for expected contracts from new design wins with original equipment manufacturers.

In its wireless business, the company worked with a number of original equipment manufacturers to develop customised products, and expects a number of these projects to enter production in the 2015/16.

Filtronic said it had secured design wins with four customers for antennas, which it expects to generate revenue in the second half of the 2015 financial year.

In broadband, sales revenue from E-band and V-band backhaul transceiver modules increased and replaced lower margin, legacy products. The company relocated its operations to a new location in County Durham which it said has allowed it to reduce fixed costs and focus its manufacturing capabilities.

Filronic said that it expects to see its wireless division return to growth, and this, combined with the upturn it has seen in its broadband division, underpin its confidence in its future prospects.

Shares in Filtronic were trading down 2.0% at 23.76 pence Monday morning.

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Source: Alliance News

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