Filtronic LON:FTC the AIM-listed electronic components business, has won a USD8.4m (GBP6.4m) contract with US space transport and logistics company Space Exploration Technologies Corporation (SpaceX).
As previously reported, Filtronic signed a five-year partnership with SpaceX to supply its Cerus solid state power amplifier in April. The current contract is a follow-on production order for its E-band solid state power amplifier modules to support the ongoing development of SpaceX’s Starlink constellation.
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Filtronic hopes that the order will be fulfilled by the end of 2025 and receipt of the order means that Filtronic’s management now expects that the firm will trade ahead of expectations for the financial year 2025.
SpaceX Starlink constellation will provide high-speed, low-latency internet to users all around the world. Filtronic does not plan to announce further order intake for the E-band SSPA unless they fall outside the expected pattern or are material in the context of our anticipated financial performance.
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Chief executive, Nat Edington said in a statement to the market: “We are delighted to receive another production order from our partner, SpaceX, as we continue to support the deployment of the Starlink constellation with E-band technology.”
Filtronic is a key player in strategic sectors
Filtronic is the designer and manufacturer of products for the aerospace, defence, space and telecommunications infrastructure markets. Although Filtronic has been around since the 1980s as a defence contractor, before diversifying into telecommunications in the 1990s, the company has historically had quite a narrow and focussed client list, mainly government entities, especially in its defence portfolio.
As reported in its full-year results published last month, Filtronic reported an increase in year-on-year revenue of 55.8% to GBP25.4m and the period saw earnings increase by 277% and operating profit up 1,700% to GBP3.6m.
Tipped as ‘One to Watch’ by The Armchair Trader earlier this year, Filtronic’s shares opened the week at 80.44p, up 277% over the year to date and up 387% over one-year.
It seems that Filtronic can go into the end of the year in a good place.
