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12 December 2006


Filtronic shaves around £5m off expansion plan

In its six month trading update (ended 30 November 2006), Filtronic plc announced that it foresees a flat performance for the second half of the financial year ending 31 May 2007, compared with the first half.

Filtronic says that due to anticipated lower demand for switches, its compound semiconductor products are not expected to show revenue growth in the next six months, and because of this it is revising its capital expenditure plans down by around £5m, compared to that indicated in June 2006.

For the group’s continuing operations, the trading performance of Compound Semiconductors and the Point to Point activity in the first half of the financial year ending 31 May 2007 is in line with expectations. However, Filtronic says that the recovery of the Defence Electronics industry is proceeding more slowly than it expected, and with this the group has incurred operating losses on its continuing activities, as anticipated.

The sale of the Wireless Infrastructure business to Powerwave Technologies Inc completed on 15 October 2006, for $185m (£96.9m) and 17.7m shares of Powerwave common stock. Filtronic has to date sold 4.8m of these shares for a net consideration of approximately £15.3m, resulting in its current holding of Powerwave’s shares being 12.9m (9.91% of Powerwave’s issued share capital).

Full interim results will be announced on Monday 29 January 2007.

See related items:

Filtronic plans expansion of its compound semiconductor division

Filtronic's Wireless Infrastructure sale revised