5 May 2016 – new contract win

Further substantial production orders have been received by Filtronic for its new range of integrated antennas from a major European OEM.  The orders are valued at approximately US$24.2m and are follow-ons to the previously announced orders totalling US$13.8m.  The new orders are likely to be fulfilled in the financial year ending 31 May 2017.  It should be noted that these orders are partly being placed to put inventory into the OEM’s sales channel and therefore may not represent normal demand levels.  Nevertheless, this is very positive news and it is no surprise that the share price has surged on the news.  The shares are a BUY ahead of a trading update next month.