A TECHNOLOGY firm has issued caution over financial results - but bosses say they remain pleased with its performance in a “lumpy” market.

Filtronic expects half-year revenues and profit to fall as it works around changes to contract arrangements and continues efforts to build its customer base.

The firm added the reverses have been led by a “projected phasing of order fulfilment”, revealing its results will be impacted by deliveries of lucrative defence sector contracts, overseen by its North-East broadband division, shifting from the first half into the second half of its year.

Loading article content

According to figures for the six months to November 30, released yesterday, unaudited revenues at the business, which operates from NetPark, in Sedgefield, County Durham, are expected to come in at £12.8m, compared to £21.6m a year ago.

Broadband revenues are anticipated to stand at £1.8m, which would be lower than the £2.9m recorded 12 months ago.

However, chief executive Rob Smith, who earlier this year exclusively told The Northern Echo that Filtronic was working alongside a US customer on a product aimed at improving broadband connections, said officials remain unfazed by its forecasts.

He said: “Sales are expected to be lumpy until we further broaden our customer base. However, we are pleased with order intake and contract wins, which support our development goals.”

Filtronic is known for developing the Orpheus e-band transceiver, which increases the amount and quality of data that networks, including the telecoms sector, can carry, and its defence deals include a near £5m contract to supply high-frequency apparatus for an aerospace project.

The firm has undergone a period of rebuilding after difficulties in the telecoms market compounded the impact of a quicker-than-expected TV anti-interference filter deal culmination.

However, speaking to the Echo, Mr Smith said it was now moving in the right direction.

He said: “Rollercoaster would be a good analogy; we spread ourselves far too thinly and we had to make some tough decisions.

“But we are now making long-term decisions."