LONDON (dpa-AFX) - Shares of Filtronic plc (FTC.L) were losing around 12 percent in the early morning trading in London after the manufacturer of antennas, filters and mmWave products Wednesday said it expects operating loss and weak revenues in its fiscal 2019.
The company's trading during the second half of the year was broadly in line with market guidance.
In its trading update for the financial year ended May 31, the company said its Board expects operating loss of approximately 1.7 million pounds, compared to prior year's operating profit of 1.8 million pounds. Loss before interest, taxation, depreciation and amortisation or LBITDA is expected to be 0.5 million pounds, compared to last year's earnings of 2.5 million pounds.
Revenue for the year is projected to be approximately 20.6 million pounds, down from 24.0 million pounds a year ago.
As announced earlier, sales of Massive MIMO antennas into the telecoms market had been adversely affected by lower demand tan expected from Original Equipment Manufacturer customer. The company said there has been a continued lack of clarity regarding future demand for this product throughout the second half. This was due to the ongoing delays in proposed corporate consolidations of the US Mobile Network Operators.
Further, a performance issue was notified affecting certain antenna products shipped in fiscal 2017 that are still under warranty. The company is reviewing the full extent of the issue and number of units affected.
The Board has conducted a strategic review of its telecoms antennas activities and is making progress towards finalising its preferred option.
In London, Filtronic shares were trading at 8 pence, down 12.09 percent.
Copyright RTT News/dpa-AFX