Filtronic’s shares dive on delayed orders

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Mobile phone technology firm Filtronic said its wireless business is facing a sharp, but temporary, fall in activity as a number of customers defer orders, sending its shares down 21 per cent.

The Leeds-based group said a number of potentially large projects, where Filtronic Wireless has been approved as a supplier, have been deferred beyond the end of the group’s financial year end on May 31.

It added that a number of operators in key markets for 4G have been bought by others over the last few months, leading to delays and changes to the roll-out of infrastructure projects.

The group’s shares fell 10.25p to close the day at 38.5p.

The group now expects that Wireless turnover for the second half will be around 60 per cent lower than the first half year, leaving the Wireless business with a small operating loss for this six-month period.

Filtronic is gearing up for the launch of 4G across Europe and the US as increasing numbers of customers use their smartphones to gain access to the internet.

The group said its broadband business has performed in line with expectations and underlying sales for the second half are expected to be similar to the first half.