Filtronic to meet profit forecasts

The Shipley-based group said orders for point-to-point microwave, aerospace and E Band radio products remain good and extend into the summer.

The group had expected a drop in demand for legacy point-to-point microwave products to be followed by a further significant decline due to product substitution, but demand has been secured for longer than expected.

Product volumes are now expected to drop to residual levels during the summer and autumn.

Filtronic said its wireless division continues to make good progress and is involved in a number of new developments to underpin future growth.

The division recently increased its customer base and is supporting the introduction of a countrywide network upgrade in the US.

Whilst this rollout is at an early stage, Filtronic said the take up of its filters and combiners remains difficult to forecast.

However it said recent orders indicate encouraging signs of increasing demand and the wireless division will deliver further revenue and margin growth in the second half of the financial year.

The group said the precise year-end outcome remains subject to the timing of short term orders for the wireless business, but the board believes that current market estimates for the full year group revenues and profit will be delivered.