Technology tiddler Filtronic (FTC) looks like a complete laughing stock after yet another profit warning, one that has finally seen chief executive Alan Needle given the axe. Talk about limited visibility, this company appears to have permanent cataracts. No wonder the shares have collapsed again, slumping more than 20% to 14.12p. The shares were 62p at the start of last year.
The Leeds-based company makes microwave kit for mobile and broadband infrastructure companies but the 4G, next generation of mobile communications workload is proving worryingly elusive. Having spelled out the possibility of contracts being put back, put-off or put down on 29 January, its Wireless business has duly delivered yet more disappointment as its big original equipment manufacturing customers continue to dither.
'It is unlikely that any of the antenna projects in development will produce significant revenue before the 31 May year end,' says the company. This means that the division's revenue will be 'around £10 million for the year,' which is substantially below the £13 million pencilled in by analysts at Panmure Gordon, and vastly below the £25.7 million expected as recently as June 2014. At least the broadband side is apparently doing OK.
Worryingly, for all the company's attempts to save the day (cutting a swathe of jobs in the UK and abroad) there is also now the threat of an emergency cash call too. Worrying times.