Group Sales up 34% to £297m; Operating Profit up 42% to £12.2m, Wireless Infrastructure Business Operating Profits Treble to £27m
Heads of Agreement for Strategic Alliance with M/A-COM Inc and a Development and Supply Agreement with BAE SYSTEMS Avionics Ltd for Newton Aycliffe Facility
Filtronic plc ("Filtronic"), a leading global designer and manufacturer of a broad range of customised microwave electronic products, announces its Preliminary Results for the year ended 31 May 2001. Its technology and engineering can be applied to several business sectors in both the commercial and defence areas. Filtronic has 17 worldwide sites, 7 in the UK, 6 in the US, 2 in Finland, 1 each in Australia and China.
Filtronic also announces today that it has entered into separate Heads of Agreement with two multinational companies for its Newton Aycliffe facility in County Durham, to supply large volumes of compound semiconductors to the mobile handset, wireless local area, network and other commercial markets and to supply compound semiconductor devices for defence applications. Newton Aycliffe will also have the capability for Filtronic to supply a wider range of products for its own applications. These include devices for higher levels of integration in base station power amplifiers, point to point microwave transceivers and optical transceivers.
Said Professor David Rhodes: "The combined effect of these agreements will be to improve the cash flow and profitability of the Newton Aycliffe operation significantly such that Newton Aycliffe s impact on the financial results of the group as a whole for the year ending 31 May 2002 is likely to be immaterial. The site is expected to move into profitability in the following financial year."
Financial Highlights
Newton Aycliffe
Heads of Agreement for Strategic Alliance with M/A-COM Inc, a leading compound semiconductor supplier and a subsidiary of Tyco International Ltd, to supply large volumes of devices to the mobile handset, wireless local area network and other similar markets
Finance
Cash balances of £5.6m at 31 May 2001; year end facility of £25m; £10.8m unutilised. Facility now increased to £31m
Business Review
Strong growth of 2½G, GSM Systems in Far East, particularly China, Latin America, and USA; however, low levels of US-TDMA system spending and 2½G spending in Europe
Outlook - In his Statement to shareholders, Professor David Rhodes, Executive Chairman said:
"The Board recognises the significant loss of shareholder value which has occurred in the last year. By concentrating on strategy which is appropriate for the company in the medium to longer term, the Board believes that the best value can be provided to our shareholders."
Enquiries:
Professor David Rhodes, Executive Chairman, Filtronic plc
Tel: 020 7786 9600
(today)
John Samuel, Finance Director, Filtronic plc
Tel: 020 7786 9600
(today)
Christopher Schofield Director, Filtronic plc
Tel: 01274 530622
Peter Binns/Paul Vann Binns & Co
Tel: 020 7786 9600
