Filtronic to make loss as customers hold back

16th Apr 2010 08:02

Filtronic's customers have been slow to start spending again following the downturn and the company, which makes microwave electronics products for the wireless telecoms market, expects to make a small operating loss for the full year as a result.'Trading in the fourth quarter has suffered from the continued delay in the recovery of telecoms infrastructure spend,' the company complained. 'The short term demand outlook to the May financial year end is being particularly impacted. The Board now expects the Company to report a small operating loss for the full year.'The maker of semiconductors, capacitors and other components said it has taken action to trim costs without impacting future product development. However, given the subdued demand outlook for summer due to customer inventory overhang, more small operating losses are expected into the first half of the next financial year.Recently announced contracts are expected to add 'significantly' to revenues from the start of calendar year 2011 though. 'In the same time frame, market expectations are for the robust underlying drivers to initiate substantial growth in mobile broadband infrastructure demand,' the company said.