Filtronic continues R&D commitment
FILTRONIC said today that its commitment to research and development will help position the company with competitive products as economic conditions improve.
The Shipley-based wireless communications firm said that underlying market drivers for its point-to-point (PTP) business remain intact, although the immediate outlook is subdued.
The business, which manufactures microwave modules that are key elements of its electronically scanned radars, said that cost reductions implemented in response to lower customer demand had enabled it to trade above breakeven and spend money on product development and core technology.
Filtronic has also received its irst order from SELEX Airborne Systems under the long term strategic supply agreement.
The group has undergone a significant restructuring in the past few years with the disposal of much of the company.
It sold its UK and Australian defence electronics business to Teledyne last August and is now purely focused on point-to-point telecoms operations.
Operating profit from continuing operations before exceptional items for the year ended May 31, 2009 was £2.1m compared to £2.5m the year before.
Revenue for the much slimmed down business dropped from £40.1m to £28.8m for the period.
Research and development costs were £2.3m, representing 7.3% of total revenue.
R&D costs relating to continuing operations were £1.8m (6.4% of revenue).
Filtronic said that network expansion and capacity upgrades in developed regions continued to drive demand for PTP products.
