Filtronic Regulatory News (FTC)

Filtronic plc

("Filtronic", the "Company" or the "Group")

Interim Management Statement

Filtronic plc (LSE: FTC), the designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, issued the following Interim Management Statement at its Annual General Meeting today.

During the first quarter of the financial year, the Wireless business has traded broadly in line with expectations. The Wireless business is currently engaged in a number of new product introductions with OEM customers, some of which we anticipate will enter production between now and the end of the financial year. As noted at the time of the preliminary results, the timing and volume of production contracts following on from design wins remains uncertain. Nonetheless, sales revenue for the financial year is projected to increase month on month and be significantly weighted towards the second half. These new product introductions include combiners, filters, new antenna designs and integrated filter / antenna products. A new, purpose built antenna assembly and testing line has been opened by our sub-contract manufacturer in China to satisfy the forecast demand for these types of products. 

Broadband has performed somewhat below expectations during the first quarter, although second quarter performance, for which visibility is relatively good, is expected to be stronger. However, there is a greater than usual degree of uncertainty over the second half outlook as a key customer's product introduction, which incorporates one of our modules, has been delayed. Additionally, a proportion of our modules are made for OEM customers who are selling to Russian Operators, where the landscape for business has changed markedly over the last few months.

While at this stage of the year it is too early to be clear about the second half outlook for Broadband, on the balance of probability management believes that for the year as a whole Broadband is likely to generate a result below current market expectations.

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