LONDON (ShareCast) - Uncertainty is clouding demand prospects for new 4G network products, knocking shares in wireless telecoms group Filtronic.

Filtronic, which makes microwave electronics products for the wireless telecoms infrastructure market, said demand indications from some key 4G customers in the US are increasingly robust but others are "less clear".

The group said operator demand in Europe overall was encouraging, but the timing of investments was uncertain.

It added that forecast sales for both its wireless and broadband businesses were increasingly biased towards US dollar sales, making it more exposed than previously to the stronger pound.

Filtronic made underlying operating profit in the six months to November 30th of £1.7m against £100,000 a year ago, while pre-tax profit was £93,000 against a £1.2m loss a year ago.

Chairman Howard Ford was more upbeat about longer term prospects, saying the roll-out of 4G networks was still in its early stages and only 19% of handsets in the US were equipped to receive 4G signals, with the European figure even lower.

He said demand for 4G would drive network investment by network operators

"Filtronic continues to invest in key technology areas to broaden its product range which addresses this growing market," he said.

The stock fell 12.2% to 53.25p at early trading in London.

PW

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