Filtronic looks ahead to 4G future after falling to a loss
FILTRONIC fell into losses last year as sales fell after it invested in developing new products which it says will provide good opportunities in the growing 4G market.
The Shipley-based designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market saw pre-tax losses of £3.7m in the year to May 31 compared to a £200,000 profit the previous year.
Sales revenue fell to £32.9m from £40m during a year which chairman Howard Ford described as “an important developmental year” with the introduction of several new products and involvement in a number of custom projects which have led to design wins with both original equipment manufacturers (OEMs) and network operators.
He said the disappointing performance was due to the conclusion of a significant project to deliver 4G interference mitigation filters, which completed in the first half of the year and a longer lead time for expected contracts from new design wins with OEMs.
Filtronic’s Wireless business develops and markets innovative customised filters, combiners, and microwave subsystems which enable mobile operators to use their existing network infrastructure to overlay 3G and 4G services, as well as providing OEM customers with next generation filter solutions for 4G base station units.
Its Broadband business designs and manufactures customised microwave electronic sub assembly components that are integrated by OEM’s into radios for telecom network links and by a leading radar manufacturer into its aerospace products.
The group had a net cash balance of £2.5m at the year end.
Mr Ford added: “Investment in the 4G equipment infrastructure market continues to grow and offer significant opportunities for both Wireless and Broadband. The number, scale and quality of new opportunities continues to be strong and whilst the timing and volume of contracts from design wins remains uncertain, we expect Wireless to return to growth and with the upturn we have seen in Broadband the board is confident about the prospects for the business.”
