Filtronic PLC (LON:FTC) shares rose on Wednesday as the designer and manufacturer of products for the critical communications and wireless telecoms markets announced contract wins a day ahead of the release of its interim results.
In a statement, the AIM-listed group revealed two separate advanced mmWave design and development contracts which it said "have strategic importance to the development of the company and its technology roadmap".
The company noted that the first contract, from a leading RF equipment company in the USA, covers the design, development and delivery of high-performance, mmWave modules for incorporation within their next-generation over-the-air equipment.
The design and development order is structured around incremental development milestones over a period of approximately 16 months, for a full contract value approaching $1.0mln (approximately £0.8mln), with revenue predominantly recognised in full-year 2021, Filtronic said.
The second contract, agreed with a leading High Altitude Pseudo-Satellite (HAPS) solution provider in the USA, covers the design, development and delivery of next-generation, high-performance transceiver modules to enable high capacity HAPS to ground and inter-HAPS data transmission using E-band frequencies, the company added.
That design and development order is structured around incremental development milestones over a period of approximately 18 months, for a full contract value approaching $0.6mln (approximately £0.5mln), with revenue also predominantly to be recognised in full-year 2021, Filtronic said.
Reg Gott, Filtronic’s executive chairman, commented: "We are delighted to have been chosen to deliver these technically challenging projects. It is another fantastic endorsement of our engineering and manufacturing capability and emphasises our position as a leading global player in the rapidly growing mmWave equipment market".
In afternoon trade, shares in Filtronic were 3.5% higher at 11.00p. The group will announce its half-year results for the six months ended 30 November 2019 on Thursday, 6 February.