Watch Filtronic (FTC)…


Experienced member
1,266 5
Up +30 (12.2%) to 275..

This baby bounced again today..missed the bounce as I had to go out...the following news worth reading in you're following FTC..

LONDON (AFX) - Filtronic PLC said it is in ongoing discussions with a leading international aerospace and defence original equipment manufacturer to form a joint venture company based upon the infrastructure located at Filtronic's Newton Aycliffe compound semiconductor facility.

The proposed new company will offer to both shareholders the supply of advanced compound semiconductors and the use of an automated microwave factory, capable of supplying cost effective microwave electronic subsystems in volume manufacturing quantities, it added. Key products for Filtronic will include high power gallium arsenide
transistors for power amplifiers in 3G base stations, customised microwave monolithic integrated circuits for millimetre wave broadband wireless products
and photonic components.

It added it is intended the microwave factory will supply Filtronic with complete amplifier and transceiver subsystems for both commercial and defence

Further development for defence systems requirements will lead to the production of compound semiconductor devices suitable for both phased array radars and electronic countermeasure systems, it said.

Additional capacity in the microwave factory would enable the production of high performance, cost effective, microwave electronic subsystems for various
defence systems in addition to Filtronic's own supply to EuroDass and Euroradar for embodiments in the Typhoon avionics system, it added.

It is also envisaged that there will be one or more selected third party customers for the compound semiconductor products, which do not compete with the
principal shareholders' businesses, it said.

It added, overall, this would lead to a significant proportion of the manufactured output for both compound semiconductor products and the microwave
factory being for commercial applications.

This, in turn, would enable the products within the defence related business to be produced to a high quality in a very cost effective manner, which normally
could not be achieved due to the relatively limited level of demand for defence

The board of Filtronic said it will make a further announcement regarding the proposed joint venture at a later date as appropriate.



Experienced member
1,266 5
After tubling down to 100ish for not being able to find a solution to Newton Aycliffe problem causing £1m-a-month losses , FTC is back for a strong bounce as there are news that they "have signed a deal with BAE Systems to stem the £1m-a-month losses at the company's plant in Newton Aycliffe, Durham.
Another deal, with M/A- com, an American firm, will also help to cut the losses.
No redundancies are now expected among the 140 workers at Newton Aycliffe.
Filtronic will announce its new joint ventures tomorrow when it releases its figures for the year to May."

Chart also suggesting a recovery as strong resistance around 130 has been broken through, both stochastics and RSI indicating further upward movements...

Back on my watch list

(no financial advice intended)



Legendary member
5,580 46
I've got it as my comp entry, purely on TA. I'ts nice to see there's some news behind it...I gotta beat Dave somehow....


Experienced member
1,266 5
Up +38.5 (28.7%) at 172.5

And here is the news:

LONDON (AFX) - Filtronic PLC said it has entered into separate heads of agreement with two
companies for its troubled Newton Aycliffe manufacturing facility in County Durham which it hopes
will see the plant move into profit in the year-ending 2003.
This came as the microwave electronic products group reported full-year results showing pretax
losses sharply widening, partly due to a 14 mln stg write-down in carrying value on its US
semiconductor division.
Filtronic said it has signed heads of agreement for a strategic alliance with Tyco International Ltd
subsidiary M/A-COM Inc and a development and supply agreement with BAe Systems Avionics Ltd
for its Newton Aycliffe Facility.
The combined effect of these agreements will be to improve cash flow and profitability of Newton
Aycliffe significantly, the group said.
These agreements will see the group supply large volumes of compound semiconductors to the
mobile handset, wireless local area, network and other commercial markets for M/A-COM, and to
supply compound semiconductor devices for defence applications for BAE Systems.
Newton Aycliffe will also have the capability for Filtronic to supply a wider range of products for its
own applications. These include devices for higher levels of integration in base station power
amplifiers, point to point microwave transceivers and optical transceivers.
Said executive chairman David Rhodes: "The combined effect of these agreements will be to
improve the cash flow and profitability of the Newton Aycliffe operation significantly such that
Newton Aycliffe's impact on the financial results of the group as a whole for the year ending 31 May
2002 is likely to be immaterial.
"The site is expected to move into profitability in the following
financial year."
This came as Filtronic reported results for the year ending 31 May 2001 showing a loss before
taxation at 21.2 mln stg, a widening of 81 pct against 3.9 mln in its last fiscal year.
This loss included net interest charges of 12.5 mln stg, and exceptional goodwill impairment of
14.0 mln stg relating to the group's compound semiconductor operation at Filtronic Solid State in the
Following a review, the directors concluded that the carrying value of these US semiconductor
assets, including goodwill, exceeded their net realisable value by the write-off level.
Sales over the period were up 34 pct at 297.4 mln stg from 222.3 mln in 2000, while operating
profit before goodwill amortisation, exceptional goodwill impairment and share compensation costs
was 12.2 mln stg, up 42 pct from 8.6 mln last time.
This resulted in a basic loss per share of 31.24 pence, from 11.64 pence last year.
The board is proposing to maintain the final dividend of 1.8 pence.
In its outlook statement, David Rhodes said the board "recognises the significant loss of
shareholder value which has occurred in the last year" -- shares have fallen by four-fifths during its
fiscal 2001.
"By concentrating on strategy which is appropriate for the company in the medium to longer term,
the Board believes that the best value can be provided to our shareholders," he said.


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