North-East Business
Filtronic upbeat as it expands US operations
10:26am Wednesday 1st February 2012
A NORTH-EAST electronics firm has announced that it will recruit more staff in the upcoming months as it targets new markets in the US.
Filtronic, whose management and staff are based mainly at Newton Aycliffe, County Durham, said 2011 had been a "year of transformation" as it managed the loss of some key customers and also cut costs.
The firm, which specialises in components linking mobile phones with their networks, is targeting new customers after losing its major broadband clients Nera Networks last year when it was bought by Ceregon, a rival maker of similar devices.
However, the growth of Filtronics wireless business, which has made a major breakthrough in to the US which has opened up a potential $600m market, and its determination to add to its broadband client base, has given it the confidence to begin recruiting new staff, with about six new faces expected to join this year. Hemant Mardia, Chief Executive of Filtronic plc, said the company was "now looking towards growth with improved margins," adding: "We have made significant progress in winning new business in the last six months and we expect that will continue through 2012."
He explained that the speed of development in its wireless business was dependent upon the timing of network upgrade and roll-out plans for some of its US customers.
"But in many parts of our business we face relatively little competition and we have a very strong set of products which places us in a positive position," he said. Mr Mardia said that the expertise of staff based at its site in Newton Aycliffe in developing high frequency technology would also offer opportunities to win business with security industry customers who were keen to deal with a trusted, UK-based supplier.
In yesterdays interim results for the six months ended November 30, Filtronic reported that revenue from continuing operations had risen to £10.5m, compared with £8.2m in the same period the year before.
The operating loss before amortisation and exceptional items was £1.2m, compared with a £4.4m loss in the same period last year.
Revenues in the wireless division grew by 66 per cent from £3.1m in the first half of the year to £5.2m in the last six months.