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LONDON (Alliance News) - Filtronic PLC said Tuesday that Chief Financial Officer Rob Smith will take over the position of chief executive officer from Alan Needle with immediate effect, as it warned that it is now unlikely any of its antenna projects in development will produce "significant" revenue before the end of its financial year on May 31.
Shares in the wireless telecoms product manufacturer are trading down 15% at 15.01 pence Tuesday morning.
Filtronic said that after meetings with customers and an appraisal of its key engineering developments its is now clear that revenue from its Wireless business will not build up as quickly as expected in the latter months of its second half. It now expects revenue for this business to be around GBP10.0 million for the year to end-May 2015.
A weak performance from the Wireless business hampered the company's first half result, with the business posting revenue of GBP3.9 million for the six months to end-November compared with GBP16.5 million a year before.
Filtronic said Tuesday that its broadband business continues to trade in line with expectations.
It has taken measures to save costs, including making redundancies in the UK and overseas, which it expects to boost profit and cash flow modestly in the remaining months of its financial year. It does not expect the main benefit of this cost cutting to be felt until the start of the following financial year, however.
It had net cash of GBP1.0 million as at the end of February, compared with GBP200,000 at the end of November. It said that bank facilities, based on invoice discount are in place and it is investigating options to strengthen its balance sheet.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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