28th Jan 2015 07:51
LONDON (Alliance News) - Filtronic PLC Wednesday warned that results for its Wireless business will be "substantially lower" than current market expectations for its first half, and its Broadband business has traded "marginally lower" than in the previous year.
In the Wireless business, results have been hit by the delayed development of an advanced integrated antenna product due to technical issues arising in product testing and qualification. The antenna, which Filtronic had expected to be a significant element of its growth, will now enter production at least four months later than anticipated.
Compounding this issue, an anticipated order from an operator was not received, and two programmes with original equipment manufacturers have been delayed into the next financial year.
In Broadband, Filtronic's performance has been hit by the curtailment of orders from its customers selling in to Russia, leading the business to perform slightly below the level Filtronic had expected. Filtronic expects demand for it E-band and V-band products to grow in the coming years, but said it "does not foresee a significant improvement in market conditions in the near term".
Filtronic said that, despite these setbacks, it remains confident its its strategy and the sales growth potential from its qualified original-equipment-manufacturer products.
"This should lead to a much improved trading performance over the medium-term," Filtronic said.
The company will release its interim results Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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