North telecoms manufacturer Filtronic has announced a £700,000 contract with a US company following a pilot project.
The company, which has bases in Sedgefield, County Durham, Yeadon in Leeds and Maryland, US, designs and manufactures products for the aerospace, defence, telecoms infrastructure and critical communications markets.
Filtronic bosses said the deal is a follow-on contract for full production units, after the successful pilot-phase build of over-the-air 5G mmWave modules into the test equipment market which it secured last October.
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At the time, the company said the contract was of strategic importance as it fulfilled its objective to widen its client, as well as addressing a market it was actively targeting for growth.
The new contract is valued at $900,000 – approximately £700,000 – and sees the product extend the frequency range of the customer’s existing product offering above 50GHz, by adding Filtronic’s extensive mmWave specific design and manufacturing know-how.
The stock market announcement said revenue is expected to be recognised in FY2023 and meets the strategic objective of broadening the customer base.
Richard Gibbs, chief executive officer, said: “We are delighted to have been chosen as the production partner for these technically challenging mmWave products. Once again, we have been able to demonstrate the importance of our in-house manufacturing, and our ability to take a design all the way through from initial concept into full production. We now look forward to the challenge of delivering production units working to secure future manufacturing orders of this product.”
Earlier this year Filtronic, which moved its registered address to its NETPark base in Sedgefield last month, posted rising half-year revenues and profits. Revenues for the six months ended November 30, 2021, rise from £7.1m to £8m, while operating profit also jumped from £100,000 to £700,000. Adjusted Ebitda rose from £600,000 to £1.1m and the overall loss recorded in the comparable period was converted to profit of £700,000.
