Filtronic Regulatory News (FTC)

11 Dec 2006 07:02

Filtronic PLC11 December 2006 Trading update for 6 months ended 30 November 2006 Filtronic plc today provides its trading update for the 6 months ended 30November 2006. The sale of the Wireless Infrastructure business to Powerwave Technologies Inc('Powerwave') completed on 15 October 2006, for a consideration of $185m(£96.9m) and 17.7m shares of Powerwave common stock. The company has to datesold 4.8m of these shares for a net consideration of approximately£15.3m,resulting in its current holding of Powerwave's shares being 12.9m (9.91%of Powerwave's issued share capital). For the group's continuing operations, the trading performance of CompoundSemiconductors and the Point to Point activity will have been in line withexpectations whilst the recovery of Defence Electronics is proceeding moreslowly, as indicated at the time of the AGM. With the substantially reducedscope of the business, the group has incurred operating losses on its continuingactivities, as anticipated. The company now foresees a flat performance for the second half of the financialyear ending 31 May 2007 compared with the first half of the financial year, withboth Compound Semiconductors and the Point to Point activity not expecting toshow revenue growth. This is due to anticipated lower demand for switcheswithin Compound Semiconductors and a period of consolidation for the Point toPoint activity after its current rapid growth. With the change in demand profile in Compound Semiconductors, the capitalexpenditure plans and associated operating costs are being revised. This shouldreduce planned capital expenditure by around £5m, compared to that indicated inJune 2006. Overhead costs are under review, with annualised savings of approximately £1malready achieved. The interim results will be announced on Monday 29 January 2007. Contact details Filtronic plc:John Poulter, Chairman 01274 530 622Charles Hindson, Group CEO 07800 706 319 (mobile) Parkgreen Communications: 020 7493 3716Paul McManus 07980 541 893 (mobile) This information is provided by RNS The company news service from the London Stock Exchange