Filtronic PLC
11 December 2006
Trading update for 6 months ended 30 November 2006
Filtronic plc today provides its trading update for the 6 months ended 30
November 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 date
sold 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 Compound
Semiconductors and the Point to Point activity will have been in line with
expectations whilst the recovery of Defence Electronics is proceeding more
slowly, as indicated at the time of the AGM. With the substantially reduced
scope of the business, the group has incurred operating losses on its continuing
activities, as anticipated.
The company now foresees a flat performance for the second half of the financial
year ending 31 May 2007 compared with the first half of the financial year, with
both Compound Semiconductors and the Point to Point activity not expecting to
show revenue growth. This is due to anticipated lower demand for switches
within Compound Semiconductors and a period of consolidation for the Point to
Point activity after its current rapid growth.
With the change in demand profile in Compound Semiconductors, the capital
expenditure plans and associated operating costs are being revised. This should
reduce planned capital expenditure by around £5m, compared to that indicated in
June 2006.
Overhead costs are under review, with annualised savings of approximately £1m
already achieved.
The interim results will be announced on Monday 29 January 2007.
Contact details
Filtronic plc:
John Poulter, Chairman 01274 530 622
Charles Hindson, Group CEO 07800 706 319 (mobile)
Parkgreen Communications: 020 7493 3716
Paul McManus 07980 541 893 (mobile)
This information is provided by RNS
The company news service from the London Stock Exchange
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