Half-year profits hit at Filtronic

The Shipley-based group saw revenue from continuing operations fall to 9.6m for the six months to November 30, compared to 18.3m for the same period in 2008.

Profit before tax was 100,000, down from 2.4m.

Filtronic, which is now exclusively focused on its point-to-point business after selling its defence electronics arm last year, said it had delivered a profit after cutting costs. It also said it had found a "major" new customer, with shipments due to begin in the next financial year.

Looking forward Howard Ford, the chairman, said: "The Board expects the reduced demand levels, which have prevailed since late 2008, to continue through the remainder of the financial year until a recovery in telecoms infrastructure expenditure materialises."

Operating profit from continuing operations before exceptional items was 300,000, down from 1.8m.

Capital expenditure in the six months was 500,000 compared with 700,000 for continuing operations in the previous period.

The group said in a statement: "Expenditure on telecoms infrastructure has generally continued at the low ebb seen since the end of 2008.

"Restricted credit for large capital projects, and delays in the award of new spectrum licences have both contributed to slow the roll-out of network expansion in developing markets.

"In the developed economies, the rapidly expanding needs of mobile data users has led to a temporary hiatus in infrastructure expenditure.

"To address this pent up consumer demand, network operators are seeking to transition to a new generation of higher capacity, cost efficient and lower power consumption infrastructure equipment.

"Such products (containing Filtronic components) are now emerging, but many operators have yet to commit to their chosen solution.

"The Group has sustained its expenditure on core technology and new product development to position itself with a competitive range of products to meet this demand.

"Progress has also been made in broadening the customer and product bases with a view to sustaining the Group's leading position in the sector."

Filtronic also said it had signed a strategic agreement with a new point to point OEM customer to supply module products.

"Limited visibility currently persists but the business is planning for an upturn in activity next financial year."

John Poulter resigned as chairman and as a director on 18 September.

It has also wound up its defined benefit pension scheme.