TECHNICAL problems and sales setbacks pushed wireless and broadband equipment developer Filtronic into an operating loss of £4.1 million.

The Yeadon-based electronics business, saw revenues in the six months to November 30 slump to £7.3 million, against £20.1m a year earlier.

Filtronic said the results reflected lower sales in its wireless technology business following the completion of a major contract in the first half of last year and the slower-than-anticipated development of new product sales to original equipment manufacturer customers. The business is expecting revenues to become less volatile.

Its performance was hit by technical problems during the final testing of new equipment incorporating Filtronic components, the loss of an expected major order along with delays to two programmes for a major customer.

The broadband business has traded marginally lower than in the first half of the previous financial year and slightly below expectations. It has been hit by the curtailment of orders from customers selling to Russia, which has imposed sanctions of EU imports, which had been an early adopter of E-band and V-band technology. Filtronic expects growing demand as the technology is adopted more widely, but does not foresee a significant improvement in the short term.

Howard Ford, chairman, said: “While we are disappointed with the sales performance in the first half and foresee that the upturn in the second half is likely to be later than originally planned, we remain confident in our strategy and in the growth potential from the OEM products we have developed and are continuing to develop leading to a much-improved trading performance over the medium-term.”