Filtronic Wins OEM Deal

Filtronic announces OEM customer for the design, manufacture, and supply of Radio Frequency transmit/receive modules for base stations

April 15, 2004

2 Min Read

SHIPLEY, U.K. -- Professor J David Rhodes, CBE FRS FREng, Executive Chairman of Filtronic plc (‘Filtronic’), issues the following statement concerning developments in its customer base and the impact of exchange rates on current trading results.

“I am pleased to announce that Filtronic has signed a significant new frame agreement with a new major Original Equipment Manufacturer (“OEM”) customer for the design, manufacture and supply of Radio Frequency transmit/receive modules for cellular basestations. Initial production volumes will be for GSM 1900 MHz applications and in a full year are scheduled to increase the total units currently supplied by Filtronic’s Wireless Infrastructure division by more than 20%. Initial supplies will be made in the last quarter of 2004 calendar year following the normal qualification processes.

As stated in my interim results statement on 2 February 2004, we have been aggressively pursuing business opportunities of this type with new customers. In order to be able to satisfy our customers’ demands for production capacity, we have not only maintained levels of our design and manufacturing capacity in our Wireless Infrastructure facilities in the UK, USA, Finland and Australia but we have been rapidly increasing our now substantial manufacturing capacity in China. In doing this, there have been additional costs in this business which in the short term have had the effect of reducing margins.

Filtronic’s results for the year ending 31 May 2004 will include the financial performance of our overseas operations for the whole year translated into sterling at the rate of exchange ruling at that date. Based on today’s exchange rates the translation is likely to impact operating profit for the full year by £2.6m, of which £0.7m is due to retranslation of the first half results.

An additional effect of the strength of sterling is to place our competition, which is principally US based corporations, potentially at a competitive advantage on price. However, we are maintaining our market share.

Our work on the new power amplifier products for cellular basestations continues to progress favourably with the first production units scheduled to be supplied in the autumn. The Board believes that this strategy of addressing new markets and aggressively pursuing new customers in our traditional markets will provide long-term growth and sustained profitability.”

Filtronic plc

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like