Filtronic swings to first half operating loss as revenue hurt by declining demand

Writer, Stock Market Wire
Tuesday, January 29, 2019 - 09:10

Wireless infrastructure manufacturer Filtronic Tuesday swung to a first half loss as revenues slipped amid 'volatility' of network roll-outs in the telecoms market. 

For the six months ended 30 November 2018, the company reported operating losses of £0.9m compared with a profit of £0.9m a year earlier and revenues fell 19% to £10.4m.

The slump in revenues comes as the company announced in December that an end-customer halted its roll-out programme, significantly reducing its forecast demand until further notice, which proved a 'significant' set-back to Filtronic's growth plans.

Losses before interest taxes depreciation and amortisation was £0.1m compared with a positive £1.2m a year earlier.

Performance was also hurt by capitalised development costs of £0.5m.

'Our focus on high margin products and the strategic decision to target critical communications markets has been a key component of our strategy to mitigate the revenue volatility of network roll-outs in the telecoms market,' said Reg Gott, Chairman.

'Subsequent to the December notice we have received a follow-on order for the balancing requirement of mMIMO for H2 which underpins our confidence in the sales outlook for the remainder of the year and this, combined with our solid platform of long-term business within critical communications, means we expect trading in H2 to be broadly similar to H1.'

At 9:09am: (LON:FTC) Filtronic PLC share price was 0p at 6.6p

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