Laird Technologies announced plans to shut down its handset antenna business due to poor results. Despite recent restructuring at the business, the activities only broke even during the first quarter and revenues continued to decline thereafter, reflecting reduced demand from its major customer. In 2010 this customer accounted for 70 percent of the business' revenues. After consideration of a number of strategic options and discussions with the major customer, Laird has decided to close the business. Existing contractual order obligations will be fulfilled during 2011 and 2012 but the closure process will start immediately. The decision will allow Laird to focus more on its other activities, which continue to grow strongly. The company said it expects like-for-like revenue, excluding Handset Antennae, in the second quarter to be higher than the first quarter of 2011 and also for the same period than in 2010. The closure of the handset antenna business, together with associated restructuring, should be cash positive in the region of GBP 20 million, while a non-cash impairment charge will be taken at the half year. The company's expectations for the full year remain unchanged.
