Trading update

RNS Number : 3150D

Filtronic PLC

28 January 2015

 



Filtronic plc

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

Trading Update

Filtronic plc (LSE: FTC), the designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, issues the following statement regarding current year trading.

The Wireless business is currently engaged in a number of new product introductions with OEM customers. Based on the anticipated timing of these new product introductions, sales revenue for the financial year had been projected to increase month on month through the current financial year with a heavy weighting to the second half. A significant element of the growth had been expected to be generated from an advanced integrated antenna incorporating Filtronic filters and combiners. The development of this product has been delayed due to technical issues that have arisen during final product testing and qualification. Whilst we are implementing solutions to these issues, the delay will mean that the antenna will now enter production at least four months later than anticipated. In addition an anticipated order from an Operator has not been received. Furthermore, two programmes with a major OEM have been delayed into the next financial year. Due to the impact of the programmes affected, the Board now expects that the results for the Wireless business in the current year will be substantially lower than current market expectations.

As previously announced on 26 September, the Broadband business has traded marginally lower than in the first half of the previous financial year and slightly below the level we had expected. The business has been adversely affected by the curtailment of orders from our customers selling to Russia, a market that had been an early adopter of E-band and V-band technology. The Board believes that demand for E-band and V-band products will grow in the coming years as this technology is adopted more widely, however, it does not foresee a significant improvement in market conditions in the near-term.

Despite these setbacks, we remain confident in our strategy and the sales growth potential from the qualified OEM products we are supplying and are continuing to develop. This should lead to a much improved trading performance over the medium-term.

The Group will release its full Interim Report for the period ended 30 November 2014, as previously announced, on 29 January 2015.

Enquiries:

Filtronic plc	www.filtronic.co.uk
Howard Ford, Chairman	0113 220 0000
Alan Needle, CEO Rob Smith, CFO
Panmure Gordon (UK) Limited	020 7886 2500
Dominic Morley
Walbrook PR Limited	020 7933 8780 or [e-mail]
Helen Cresswell	07841 917 679
Paul McManus	07980 541 893

 

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