(Alliance News) - Filtronic PLC on Thursday said it entered into a USD2.0 million settlement agreement over a warranty claim filed by an unnamed client.
The claim related to certain Filtronic antenna products shipped in 2016 and 2017 that were still under warranty. The company said the issue was identified as a component fault that arose on specific antennas that were placed in certain operating and environmental conditions.
As such, Filtronic has reached a settlement agreement with the unnamed customer to pay USD2.0 million in compensation and to upgrade affected antennas and its customer's stock of antenna units.
Chief Executive Officer Rob Smith said: "The board is pleased with the outcome of the settlement agreement reached with our longstanding customer. We greatly appreciate the constructive approach taken by our customer to mitigate the cost of the warranty claim and for the helpful payment plan that reduces the cash impact on the business as we ramp output of our 5G Backhaul Transceivers. The customer remains a loyal client of the company and has been continuing to place material orders with Filtronic whilst the warranty discussions have been ongoing".
Filtronic shares closed down 3.8% at 7.55 pence in London on Thursday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Filtronic (FTC)