News

3 October 2006

 

Filtronic ends wireless infrastructure business; focus switches to compounds

Following an extraordinary general meeting on September 29, 2006, Filtronic plc’s chairman John Poulter announced that a resolution to dispose of the the company's Wireless Infrastructure business had been passed by shareholders.

In June, base-station RF product supplier Powerwave Technologies Inc of Santa Ana, CA, USA agreed to acquire the majority of Filtronic plc's Wireless Infrastructure division for $150m (£81m) in cash and 20.7m new Powerwave shares, but this was later revised to $185m (£96.9m) in cash and 17.7m new Powerwave shares (worth $134.5m, as of 1 September, giving $319.5m in total).

“Following the disposal of the Wireless Infrastructure business, the priority for the board is to focus on developing the Compound Semiconductors, Defence Electronics and the Point to Point activity. Underlying trading performance for Compound Semiconductors and the Point to Point activity are currently in line with expectations. The recovery of Defence Electronics is proceeding more slowly than anticipated”, Poulter said. “With the growth in capacity at Compound Semiconductors it is expected that there will be substantial revenue growth in the current financial year.”

Despite the positive outlook for Filtronic’s Compound Semiconductor business, Poulter raised some caution: “Overall, following the disposal of the Wireless Infrastructure business, the scale of the group's activities will be substantially reduced. This will result in operating losses pending the development and reshaping of the group, which the Board is addressing as its priority.

See related items:

Filtronic plans expansion of its compound semiconductor division . . .

Filtronic's Wireless Infrastructure sale revised

Visit: http://www.filtronic.co.uk