Shares in Filtronic PLC (LSE:FTC) fell 10% to 225p after the radio frequency specialist reported a sharp drop in annual profits.
Operating profit at the AIM-listed designer of products for the aerospace, defence, telecoms and space markets fell to £4 million from £13.4 million.
Adjusted earnings before interest, tax, depreciation and amortisation dropped to £11.3 million from £17 million, on revenue that edged down to £55.5 million from £56.3 million.
Basic earnings per share fell to 2.07p from 6.42p. Net cash, excluding property leases, slipped to £10.8 million from £12.3 million.
The company expanded its relationship with SpaceX during the year, taking a $62.5 million order for next-generation gallium nitride E-band technology, its largest single contract to date.
Gallium nitride is a semiconductor material that allows higher-power, higher-frequency transmission than the gallium arsenide it is replacing.
Filtronic also won an $8 million amplifier development contract with a US customer, a €7 million deal with a European space company and a £13.4 million agreement with a European defence prime.
It completed the move into a self-funded headquarters and manufacturing site at Sedgefield capable of supporting revenues above £200 million a year.
Filtronic entered the current financial year with an order book covering roughly 90% of market expectations for revenue, and said it remained confident of meeting them.
That year will be weighted towards the second half, reflecting the transition from gallium arsenide supply to the ramp-up of gallium nitride production.
Chief executive Nat Edington said the business was operating at greater scale with stronger visibility and a growing product-led offering.
Broker Cavendish repeated its 'buy' recommendation with a price target of 290p.
