Electronics Production | September 28, 2006
Filtronic's sales of its wireless<br>division -good or bad?
Filtronic responded to a financial analyst who said that Filtronic made a mistake by selling off its wireless business.
According to Electronicsweekly the three businesses lost nearly £5m on sales of £64m in the firm's last financial year, while the compound semiconductor fab at Newton Aycliffe has cost the company £100m to date, according. According to a report that Electronicweekly is citing the semiconductor operation is a risky business prospect because of its heavy reliance on one customer. Moreover, that customer, RFMD, is investing in a 40 per cent increase in its own in-house GaAs capacity due to come on-stream in March 2007. "We feel that, from our point of view, the demand RFMD is putting on us justifies the investment in the fab," Charles Hindson, group finance director at Filtronic, told EW. However Filtronic sticks to its opinion about that the sale of its wireless business to Powerwave is good for the company.