Mobile phone technology firm Filtronic reported a 32 per cent fall in annual turnover following lower than expected demand for its ultra-wide band antennas and delays in the production of new defence contracts.
The Leeds-based firm was also hit by lower demand for legacy filter products in the second half of the year.
Revenue fell from £35.4m to £24m in the year to May 31. Earnings were static at £2.5m and pre-tax profits fell from £2.2m to £1.2m.
Filtronic had warned that sales are expected to be lumpy until it broadens its customer base and the markets it serves.
Analyst Sanjay Jha at Panmure Gordon said: “The company has reported numbers in line with expectations. More important, the mix of revenues reflects a shift towards longer cycle markets such as critical communications for public safety, defence and aerospace.
“This has reduced the historical dependence on shorter cycle products for mobile network OEMs.
“What is not fully evident in the numbers is the progress in diversifying customer base. However, we expect product approvals to turn to direct sales to Mobile Network Operators.”
Filtronic’s CEO Rob Smith said: “We realised a few years ago that we were very exposed to the telecoms industry.
“We decided to to chase adjacent markets, with defence and aerospace the obvious markets. The other one was public safety, exclusively for the emergency services. We’ve had success breaking into the US market.”
He said that the mobile network is still very important for the group, especially as the next generation of spending kicks in.