LONDON (Alliance News) - Filtronic PLC said Friday that its Broadband business is likely to perform below current market expectations for the full year, as a key customer product introduction has been delayed.
In a statement ahead of its annual general meeting, the microwave electronics products company said that it has traded broadly in line with expectations in its first quarter, although its Broadband division performed somewhat below expectations.
Broadband's performance in the second quarter is expected to be stronger, but there is uncertainty over its second half outlook as a key customer product introduction was delayed. The company also cited the changing landscape for business in Russia, as a number of its modules are made for original equipment manufacturer customers selling to Russian operators.
Filtronic said that whilst it is too early to have a clear outlook for Broadband's second half, it is likely to fall below market expectations for the year as a whole.
In its Wireless business sales revenue is expected to increase month on month and be significantly weighted towards the second half. The business has been undertaking new product introductions with original equipment manufacturers, some of which it expects to enter production between now and the end of the financial year, although the timing and volume of production contracts from design wins remain uncertain.
Filtronic made just over two-thirds of its revenue from its wireless business in its financial year and just under a third from the broadband unit.
Shares in Filtronic were trading down 16% at 21.73 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Filtronic (FTC)