Filtronic fears loss of customer

20th Jan 2011 15:23

Communications equipment manufacturer Filtronic has warned that it could lose business following the acquisition of Nera Networks by Nasdaq-quoted Ceragon Networks. Filtronic is a supplier of point-to-point communications equipment to Nera. Ceragon has its own competing technology and it may chose to replace Filtronic equipment with its own products. Filtronic is talking to Nera about what will happen to orders in the future. The company warns that there could be a "potentially significant reduction" in sales to Nera and it is planning for various scenarios. Filtronic will report its interims for the six months to November 2010 on 31 January. It says that the integration of its new base stations business is ahead of plan and orders are encouraging.