North tech firm Filtronic plc is toasting a £600,000 deal with an American company in a new market it has been targeting.
The telecoms manufacturer – which has bases in Sedgefield, County Durham, alongside sites in Yeadon in Leeds, and Maryland, US – designs and manufactures products for the aerospace, defence, telecoms infrastructure and critical communications markets.
The company announced the “significant” new contract win, for pilot phase production units, following a successful product development of over-the-air 5G mmWave modules for the test equipment market.
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Filtronic said the new contract is valued at $800,000 (approximately £600,000) and is of strategic importance “as it fulfils the objective of broadening the customer base and it addresses an adjacent market we have been actively targeting for growth”.
The contract is with a leading RF (radio frequency) test equipment company in the US, and will see Filtronic build equipment for the customer’s next generation 5G test equipment.
The pilot phase is slated to be delivered over an 18 month period, with revenues recognised in financial year 2023.
The new contract follows an initial $1m development order for the original design and development of the modules, which was awarded in February 2020.
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Richard Gibbs, chief executive officer, said: “We are delighted to have been chosen to deliver these technically challenging products, to a client who meets our strategic objective of broadening the customer base and the markets we serve, after the completion of a successful design and development phase.
"We now look forward to the challenge of delivering this pilot phase over the next 18 months to ensure we can secure future production orders. It is another tremendous endorsement of our engineering and manufacturing capability and establishes our position as a leading global player in the emerging mmWave equipment market.”
In August Filtronic posted full year results for the year ended May 31 2021, reversing the previous year’s losses to return to profit, on the back of 20% revenue growth in the second half of the year.
Shares rose 7% in early trading to 11.50 following the contract win announcement.