Interim Management Statement

RNS Number : 6279B

Filtronic PLC

19 April 2012

 



19 April 2012

Filtronic plc

('Filtronic' or the 'Company)

Interim Management Statement

Filtronic plc (LSE: FTC), 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 2011.

Both business segments - Filtronic Broadband ('Broadband') and Filtronic Wireless ('Wireless') - have continued to perform as projected in the outlook section of the Interim Results statement issued on 31 January.

Broadband's order coverage for its point-to-point microwave, aerospace and E Band radio products remains good and extends through the first quarter of FY13 (June-August 2012). The initial drop in Ceragon demand in spring 2011 for our legacy point-to-point microwave products was predicted to be followed by a further significant decline over the second half of FY12 due to product substitution. However, demand has been secured for longer than expected, and the Ceragon product volumes are now expected to drop to residual levels during first half FY13 (June-November 2012).

As a result, Broadband FY12 revenues and profits are now expected to exceed earlier expectations, with sales likely to be in the region of £12m.

Wireless continues to make good progress and is involved in a number of new developments to underpin future growth, having recently increased its OEM customer base, as well as supporting the introduction of a countrywide LTE network upgrade in the US.  Whilst this LTE rollout is at an early stage, the timing and rate of deployment of Filtronic filters and combiners remains difficult to forecast.  However, recent orders indicate encouraging signs of increasing demand, and Filtronic's fulfilment of this demand has commenced.  As expected, Wireless will deliver further revenue and margin growth in the second half of FY12.

The precise year-end outcome remains subject to the timing of short term order call -off for the Wireless business, but the Board believes that current market estimates for the full year group revenues and profit will be delivered.

Enquiries:

Filtronic plc	01325 301111
Hemant Mardia, CEO
Mike Brennan, CFO
Panmure Gordon (UK) Limited	020 7459 3600
Dominic Morley
Brett Jacobs
Walbrook PR Limited	020 7933 8780
Fiona Henson	Mob: [phone] or [e-mail]
Paul McManus	Mob: [phone] or [e-mail]

 

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