13 April 2011 – interim management statement
Filtronic has issued a disappointing trading statement for the period since 1 December 2010. Some of its customers are phasing out certain mature products more quickly than previously expected and this will have a negative effect on trading for the rest of the financial year that ends in May. The group is also suffering from the fact that one of its major customers was taken over by a competitor in January and this has also caused a loss of business. The recently-acquired Isotek business has also reported delays to customer orders. Action has been taken by the group to reduce costs, but the shares have fallen back sharply on the statement. Although we believe that long-term prospects remain sound, for the time being the shares are a HOLD.