Contract win

RNS Number : 3926W

Filtronic PLC

01 August 2018

 

1 August 2018

Filtronic plc (the "Company")

New Contract Win and Invoice Finance Agreement

Filtronic plc (AIM: FTC), the designer and manufacturer of antennas, filters and mmWave products for the wireless telecoms and critical communications markets, is pleased to announce the receipt of initial production orders from a major European OEM for its Massive MIMO ("mMIMO") antenna product.

The orders, valued at approximately $2.0 million, represent an initial production requirement for the mMIMO antenna recently developed under the agreement previously announced on 4 April 2018. The Company expects to fulfil this order in the first half of its current financial year to 31 May 2019 with an expectation that further production orders will follow. We are currently working with our customer to establish the likely demand profile and timing of these future orders.

In addition to the contract win, the Company's wholly owned US subsidiary, Filtronic Wireless Inc ("FWI"), has entered into a sales invoice finance agreement with Wells Fargo Bank. Under the terms of the agreement FWI may draw down up to $4.0 million of cash against its available debtor book. This new arrangement is in addition to the £3.0 million sales invoice discounting facility provided by Barclays Bank plc to the Company's UK subsidiaries.

Rob Smith, CEO, commented "We are delighted to receive these initial production orders for our mMIMO antenna. The announcement on 30 July 2018 by T-Mobile and Nokia stating that Nokia will supply T-Mobile with $3.5 billion of early stage 5G Network Equipment as part of T-Mobile's first US nationwide 5G rollout underpins our confidence in our decision to focus considerable energy and resources over the past year on our mMIMO  developments. mMIMO is a key technology for Mobile Telecommunications Networks as it uses licensed spectrum far more efficiently, thereby increasing existing network capacity. It enables the use of beamforming techniques which will be an essential requirement of 5G networks. The orders demonstrate our credibility and capability as a supplier of complex antennas into the telecoms market."

Enquiries:

Filtronic plc	Tel. [phone]
Rob Smith (CEO)	Tel. [phone]
Michael Tyerman (Finance Director)	Tel. [phone]
Panmure Gordon (UK) Limited	Tel. [phone]
Dominic Morley / Alina Vaskina (Corporate Finance) Erik Anderson (Corporate Broking)
Walbrook PR Limited	Tel. [phone] or [e-mail]
Paul Cornelius Sam Allen	Mob. [phone] Mob. [phone]

Notes: 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

 

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