A NORTH-EAST broadband technology company has revealed it will make redundancies as part of a cost cutting drive.

Filtronic, based at Netpark Sedgefield, County Durham, which employs about 85 North-East workers, this morning warned that revenues from its wireless division will not build up as quickly as expected.

In a trading announcement it said the board has set in train a series of cost-saving measures involving redundancies both in the UK and overseas. Bosses have not confirmed details of where the jobs will be cut. Filtronic, which develops transmitters and chips linking mobile smartphones to networks, has offices in County Durham, Leeds, and in the US.

It said the business was exposed to the timing of several new product introductions over the next few months. In particular, it is unlikely that any of the antenna projects in development will produce significant revenue before the 31 May year end. As a consequence, the board now expects revenues for the wireless business will be around £10m for the year ending May 31.

Filtronic's broadband business continues to trade in line with market expectations.

In addition, Rob Smith, the firm's chief financial officer, has replaced Alan Needle as chief executive with immediate effect.

The board is investigating a number of measures to strengthen the balance sheet with permanent capital.

Last year, The Northern Echo exclusively revealed that Filtronic was staying in the North-East after leaving the former RFMD microelectronics plant in Newton Aycliffe when the US firm moved out of the region. Following the move the firm announced it was recruiting engineers to strengthen its growing UK broadband business and to support its North-East production centre of excellence, which features extensive laboratory, clean room and production space.