Filtronic issues profit warning

WIRELESS communications company Filtronic has today issued a profits warning after suffering from delays in telecoms spend.

The Shipley-based firm said that trading in the fourth quarter has been hit by the continued delay in the recovery of telecoms infrastructure spend.

The report said that the short term demand outlook to the financial year end in May is being particularly impacted and the board expects the company to report a small operating loss for the full year.

Actions to trim costs further have been taken without impacting future product development.

In its interim management statement Filtronic said: “The demand outlook through the summer remains constrained due to customer inventory overhang. Consequently further small operating losses are expected into the first half of the next financial year.

“Recently announced contracts are expected to add significantly to revenues from the start of calendar year 2011. In the same time frame, market expectations are for the robust underlying drivers to initiate substantial growth in mobile broadband infrastructure demand.”

The firm said it had £16.3m of cash at the end of March.

Filtronic’s preliminary results for the financial year ending May 31 will be announced in July.