Filtronic Regulatory News (FTC)

Filtronic plc

Interim Management Statement

Filtronic, the designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, issues its Interim Management Statement for the period from 1 December 2013.

Wireless

The Wireless business is facing a sharp, but temporary, fall in activity for the remainder of the financial year. A number of potentially large projects, where Filtronic Wireless has been approved as a supplier, have been deferred beyond the end of the Group's financial year end. The last few months have seen a realignment of the various operators in several key markets for 4G/LTE, either involving the financial consolidation of the participants or swapping of spectrum between competing networks. This has led frequently to revisions and delays in the roll-out of infrastructure projects.

The Board now expects that Wireless turnover for the second half will be some 60% lower than that for the first half year, leaving the Wireless business (including Antenna) with a small operating loss for this six month period.

Broadband

The Broadband business has performed as earlier expected. Underlying sales for the second half are expected to be at a similar level to those for the first six months, though turnover will additionally benefit from a sizeable last time buy on one legacy customer programme. Broadband's second half operating losswill be slightly lower than that for the first half, and the last two months should see this activity recovering to earn a small operating profit.

Overall the group is expected to be broadly break even at the operating profit level for the full year.

Outlook

The prospects for FY2015 are nonetheless positive. The Wireless business deferred for the current period is largely expected to be secured in FY2015. Filtronic is currently engaged on approximately twice the number of wireless infrastructure projects as was the case a year ago. Some of these are potentially very large, but the degree and timing of Filtronic's participation is necessarily uncertain until contracts are finalised. Broadband meanwhile has successfully concluded its exit from legacy business and is seeing steadily growing demand for its E/V band radio modules.

The results for the financial year ending 31 May 2014 will be announced in July.