Filtronic traded strongly in the first quarter with revenues rising to £11.7m (2015: £2.2m) and resulting in the group returning to profitability with an operating profit of £1.0m (2015: £2.0m operating loss), according to an update ahead of the annual general meeting.
The net cash balance at the quarter end was £0.9m. These results demonstrate significant improvement when compared with those achieved in FY2016 where the results for the full year were sales of £13.6m, an operating loss of £7.0m and net debt of £0.4m at the period end.
The improved financial performance was primarily driven by sales of our new ultra-wide band integrated antennas to our lead customer following the successful production ramp in the final quarter of FY2016, together with improving demand for our mmWave backhaul products and base station filters.
The update says that while the board is pleased with the progress made and remains confident that the long-term prospects for the business are good, it is mindful that these results are currently being driven primarily by demand from one customer for a single product type.
It adds: "Roll-out programmes for wireless infrastructure projects are naturally very lumpy and it is, therefore, to be expected that until these new antenna products gain greater traction in the broader market over the course of the next year, we will continue to experience short-term variations in sales performance for at least the balance of FY2017.
"It should also be noted that seasonality in installing infrastructure in the telecoms industry is skewed toward the spring and summer months and therefore we expect sales of these products to be lower in the 2nd and 3rd quarters of the financial year than for the 1st Quarter."