Filtronic slides 10% as profits fall despite record SpaceX order

Shares in Filtronic PLC (LSE:FTC) fell 10%, or 25p, to 225p after the radio frequency specialist reported a sharp drop in annual profits. Operating profit at the AIM-listed designer of products for the aerospace, defence, telecoms and space markets fell to £4 million from £13.4 million. Adjusted earnings before interest, tax, depreciation and amortisation dropped to £11.3 million from £17 million, on revenue that edged down to £55.5 million from £56.3 million. Basic earnings per share fell to 2.07p from 6.42p. Net cash, excluding property leases, slipped to £10.8 million from £12.3 million. The company expanded its relationship with SpaceX during the year, taking a $62.5 million order for next-generation gallium nitride E-band technology, its largest single contract to date. Gallium nitride is a semiconductor material that allows higher-power, higher-frequency transmission than the gallium arsenide it is replacing. Filtronic also won an $8 million amplifier development contract with a US customer, a €7 million deal with a European space company and a £13.4 million agreement with a European defence prime. It completed the move into a self-funded headquarters and manufacturing site at Sedgefield capable of supporting revenues above £200 million a year. Filtronic entered the current financial year with an order book covering roughly 90% of market expectations for revenue, and said it remained confident of meeting them. That year will be weighted towards the second half, reflecting the transition from gallium arsenide supply to t...