Telecoms tech manufacturer Filtronic says an industry-wide shortage of critical semiconductor components could begin to abate next year.
The electronic component manufacturer, which has bases at NETPark in Sedgefield, County Durham, Yeadon in Leeds and Maryland, US, makes products for the aerospace, defence, telecoms infrastructure and critical communications markets. The firm has now told investors its trading in the opening months of its 2023 financial year had been in line with expectations but the shortage of chips felt across many sectors had hampered its output.
Ahead of its annual general meeting, the supplier to aerospace, defence and telecoms markets, said it was confident of delivering full year results in line with expectations thanks to a healthy orderbook. It comes after Filtronic opened a Manchester office last month to support engineering design work.
Read more: Sterling Pharma Solutions sees profits and sales soar in year of investments and job creation
Earlier this year Filtronic posted a 9.6% rise in revenue across its 2022 financial year and operating profits of £2m - a significant rise on the previous year's £600,000. At the the time, chief executive Richard Gibbs said investment in equipment to help rapid process and product development had paid off by allowing the firm to create new products without disrupting its manufacturing lines.
In a statement posted to the London Stock Exchange, Filtronic said: "The continued investment in research and development has delivered promising results in next generation E-band and W-band chipsets which are showing promising results, and in turn increases confidence in successful execution of our technology roadmap.
"Momentum is building in the rollout of 5G telecommunication infrastructure, with India the latest country to licence E-band frequencies for RF backhaul applications, where our Morpheus transceiver provides the highest power levels in the industry. Tensions in the geo-political landscape, are driving elevated defence and aerospace spending commitments associated with aircraft radar systems and battlefield communications.
"Our recent investment to strengthen the direct channels to market is delivering an increased level of engagement with the major defence contractors who need to maintain a sovereign design and manufacturing capability. The opportunities for radio frequency communications in the emerging low earth orbit ("LEO") space market are developing rapidly and we continue to build strong relationships with the industry primes looking to adapt terrestrial telecommunications technology for commercial satellite applications."
READ NEXT:
