Filtronic PLC Trading Update and Notice of Results (8759Q)
December 05 2016 - 1:44AM
UK Regulatory
TIDMFTC
RNS Number : 8759Q
Filtronic PLC
05 December 2016
Filtronic plc ("the Company")
Trading Update and Notice of Results
Trading in-line with Expectations
Filtronic plc (AIM: FTC), the designer and manufacturer of
microwave electronics products for the wireless telecoms
infrastructure market and adjacent markets, is pleased to announce
its trading update for the six months ended 30 November 2016.
Trading Update
The Company traded strongly in the first half of its financial
year and expects to report unaudited revenues for the period of
GBP21.6m (FY2016: GBP4.5m), comprising Filtronic Wireless at
GBP18.7m (FY2016: GBP1.9m) and Filtronic Broadband at GBP2.9m
(FY2016: GBP2.6m). The net cash balance at the period end was
GBP0.7m (FY2016: net debt of GBP0.4m).
The improved financial performance was primarily driven by
increased sales of our new ultra wide band integrated antennas to
our lead customer, following the successful product launch in
FY2016, together with improving demand for our mmWave backhaul
products and base-station filters.
As noted in the trading statement made on 29 September 2016,
whilst the Board is pleased with the progress made and remains
confident on the long-term prospects for the business, it remains
mindful that sales are currently concentrated on a small number of
customers. Roll-out programmes for wireless infrastructure projects
are naturally very lumpy and we expect that visibility on the
pattern of customer orders will be limited until our antenna
products gain greater traction across the broader market.
Filtronic Wireless
Filtronic Wireless has strengthened its sales teams across EMEA
and North America to target opportunities with mobile network
operators and is now seeing a growing pipeline of new business
opportunities. Over the coming months, we will also be expanding
the number of product variants to address new radio frequency
releases and the ongoing demand for densification of mobile
networks. Building business with new customers and the introduction
of new products will take time and it is anticipated we will not
realise any appreciable sales from these new initiatives until
FY2018.
Filtronic Broadband
Filtronic Broadband continues to see incremental growth in sales
of Orpheus, the Company's latest generation of E-band transceivers,
with strong demand from our lead customer. A key objective for
Filtronic Broadband has been to diversify its customer base and
product offering and to this end, we are working with several new
potential customers for Orpheus in both telecommunications backhaul
and adjacent markets. In addition to E-band transceiver sales,
Filtronic Broadband is also gaining traction in the design and
manufacture of bespoke filters and the provision of specialist
high-frequency assembly and test services for the defence and
aerospace markets. Whilst the early orders we have received for
these offerings are modest in size, they represent long-term
platform business opportunities that will make an increasingly
significant contribution to Filtronic Broadband's performance.
Notice of results
It is expected the Company will publish its half year results on
30 January 2017.
Enquiries:
Filtronic plc Tel. 0113 220 0000
Rob Smith (CEO)
Michael Tyerman (FD)
Maura Moynihan (Company Tel. 01274 535 619
Secretary)
Panmure Gordon (UK) Limited Tel. 020 7886 2500
Dominic Morley / Alina Vaskina
(Corporate Finance)
Erik Anderson / Tom Salvesen
(Corporate Broking)
Walbrook PR Limited Tel. 020 7933 8780 or
filtronic@walbrookpr.com
Paul Cornelius Mob. 07866 394 707
Helen Cresswell Mob. 07841 917 679
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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