REG - Filtronic PLC - New Contract Award and Trading Update

FiltronicAnnouncement

31/01/2023 07:00

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RNS Number : 3288O  Filtronic PLC  31 January 2023

 

31 January 2023

Filtronic plc

("Filtronic" or "the Company")

 

New Contract Award and Trading Update

 

Filtronic expands presence in satellite communications market

 

Filtronic plc (AIM: FTC), the designer and manufacturer of products and
sub-systems for the aerospace, defence, telecoms infrastructure, space, and
critical communications markets, is pleased to announce a new contract win
with a leading global provider of low earth orbit ("LEO") satellite
communications equipment, a new customer for Filtronic.

 

The contract, valued in excess of £2.0m, with revenue expected to be
recognised in calendar year 2023, requires customisation and delivery of
Filtronic's Cerus solid state power amplifier ("SSPA") module. The modules,
and the related control boards, will be installed in selected ground stations
for commercial trials of the E-band earth station antenna links to and from
the LEO satellite. This is the first time that high bandwidth E-band
frequencies have been used in an operational LEO application.

 

Originally developed for early High Altitude Pseudo-Satellites ("HAPS")
applications, the Cerus Power module is based on Filtronic proprietary MMIC
chip design and is provided in a small form factor module as a scalable SSPA.
The Cerus module is available in 4, 8, 16 and 32-way configurations offering
power ranging from 4W to >10W at E-band frequencies.

 

Revenue in H1 FY2023 was £8.4m (FY2022: £8.0m) representing 5% growth, with
£1.0m of adjusted EBITDA. Strong demand has carried through to H2 which is
reflected by the current order book of £17m but we are currently experiencing
a shortage on a number of unique semiconductor components which is impacting
our ability to meet customer schedules in the second half. Our efforts to find
the components from alternative sources in the secondary market have so far
been unsuccessful. Consequently, this near-term timing issue will result in
weaker trading in FY2023 than current market expectation. As these temporary
shortages unwind, we expect an uplift in revenue and a resumption to plan in
FY2024.

 

Richard Gibbs, Chief Executive Officer, commented: "We are delighted to
engage with a highly respected new customer at the leading edge of LEO space
communications. As the number of subscribers to LEO telecommunication services
grow, maintaining network speed will become an increasingly important
consideration for the service operator. E-band represents a viable licenced
frequency band for the critical communication links to and from the orbiting
satellite. Whilst terrestrial telecom companies have successfully used
Filtronic E-band technology in their backhaul links for many years, this new
contract award vindicates our decision to adapt Filtronic's proprietary mmWave
products for the emerging commercial LEO satellite market".

 

 

Enquiries:

 Filtronic plc                                              Tel. 01740 618800 or investor.relations@filtronic.com
                                                            (mailto:investor.relations@filtronic.com)
 Richard Gibbs (Chief Executive Officer)
 Michael Tyerman (Chief Financial Officer)

 finnCap Limited                                            Tel. 020 7220 0500
 Jonny Franklin-Adams/George Dollemore (Corporate Finance)
 Alice Lane / Sunila de Silva (ECM)

 Walbrook PR Limited                                        Tel. 020 7933 8780 or filtronic@walbrookpr.com
                                                            (mailto:filtronic@walbrookpr.com)
 Paul Vann                                                  Mob. 07768 807 631

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
as it forms part of United Kingdom domestic law by virtue of the European
Union (Withdrawal) Act 2018 (as amended) ("UK MAR").

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