London-listed defense and aerospace telecom equipment maker, Filtronic, announced a pretax loss for the first half of its fiscal year due to higher costs. Despite this setback, the company expects its revenue and profit for fiscal years 2024 and 2025 to surpass market expectations.
For the six months ended November 30, Filtronic reported a pretax loss of £517,000 ($648,060), compared to a pretax profit of £440,000 in the previous year. The increase in costs can be attributed to investments in sales channels and engineering, as well as a larger proportion of lower-margin telecommunications infrastructure products in its sales mix.
Revenue experienced a slight uptick from £8.4 million to £8.5 million during this period.
In addition, Filtronic disclosed that it has secured two contracts worth $9.9 million with a global provider of low-earth-orbit satellite communications equipment. The revenue from these contracts is expected to be recognized in calendar year 2024.
Chairman Jonathan Neale expressed confidence in exceeding market expectations for the full fiscal years 2024 and 2025. He cited the resolution of semiconductor shortages that previously disrupted global supply chains and constrained operations as a contributing factor.