Newton Aycliffe-based firm Filtronic has followed up a £5.3m loss-making year with a profitable one.
The microwave electronics company, whose management and 100 of its 160 staff are based on Aycliffe Business Park, upped its revenue by 68% in just 12 months.
As reported in today’s Northern Echo, its preliminary end-of-year results show a total revenue of £26.1m, up from £15.5m in 2011, resulting in a net profit of £0.8m compared to 2011’s £5.3m loss.
However, despite the return to profit, chairman Howard Ford said the board had recommended no annual dividend for shareholders to allow the company to concentrate its resources on its plans for growth.
The group, whose business is split broadband and wireless, has targeted the United States market, where increases in the popularity of 4G and a significant growth in data traffic have meant network operators have needed to make significant investment.
This trend is expected to continue in the United States in the next five years, with the European market anticipated to follow suite.
Chairman Howard Ford’s report said the wireless business had a strong order book with more than 75 per cent of first half sales are expected to continue to be based on US demand.
The report added European demand was developing and was expected to provide growth opportunities in the following financial year.
The report said the broadband business is developing its market with next generation radio modules, known as E-band, as well as microwave components for aerospace applications.
He said although these revenues were expected to build progressively over the next 18 months to offset the decline in demand for traditional radio technology, these new products are not expected to produce overall revenue growth in broadband until 2014.
He also announced board member Alan Needle was to become chief executive, replacing Hemant Mardia, who is stepping down after 28 years.
The company’s growth will result in a small number of new jobs at Newton Aycliffe, and the company will also recruit for positions in the United States to support developments there.
Mr Ford said: “The volume of data traffic generated by mobile devices continues to increase rapidly. In particular, changes in content-viewing habits have resulted in a surge in video traffic, which currently represents 50 per cent of mobile data traffic and is expected to expand to 70 per cent by 2016.
“The release of new spectrum to enable this growth in mobile traffic will require significant network investment by operators, and is expected to benefit both Filtronic’s Wireless and Broadband businesses.
“I would like to wish Hemant well after 28 years service with the business and I am extremely pleased that we have such a highly qualified and experienced Wireless Systems man in Alan on the Board to take up the role of chief executive officer and take the company forward on its next phase of growth.”