Trading Update and Notice of Results
14 May 2019
CML Microsystems Plc
Trading Update and
Notice of Results
CML Microsystems Plc (the "Group" or the "Company"), which designs, manufactures and markets semiconductors, primarily for global communication and solid state storage markets, today issues the following trading update ahead of the publication of its financial results for the 12 months ended 31 March 2019.
The Company expects to report revenue for the full year of circa £28 million. This represents a decrease of 11% against the prior full year period which is marginally better than reported in the trading update announced on 1 February 2019. Unaudited full year figures show a profit before tax of close to £3m. The Group retains a robust balance sheet with a net cash position of £12.8 million at 31 March 2019.
Trading in the first few weeks of the new financial year has been similar to that experienced in the preceding few months, with market and geopolitical headwinds continuing to affect performance.
A key new Storage product release took place in February 2019 and is currently being evaluated by a number of early adopter customers prior to full production release. This product significantly increases the size of the Group's serviceable market and is expected to be a major growth contributor in future years.
The growing product portfolio and our expanded global sales coverage is driving the value of the Group's sales opportunity pipeline significantly higher. Despite the challenges associated with current market dynamics, the Board believes that the Company remains very well placed to benefit as these external situations normalise.
A more detailed analysis of the Company's performance and an outlook will be provided within the announcement of full year preliminary results on Tuesday, 11 June 2019.
CML Microsystems Plc
Chris Gurry, Group Managing Director
Tel: +44(0)20 7408 4090
SP Angel Corporate Finance LLP
Tel: +44(0)203 463 2260
Tel: +44 (0)7780 901979
About CML Microsystems PLC
CML designs and develops semiconductors for the industrial storage and communications markets. The Group utilises a combination of in-house and outsourced manufacturing and has trading operations in Europe, the Far East and USA. CML targets niche markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading telecoms equipment providers and industrial product manufacturers.
The spread of its customers and products largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the ever increasing trend towards solid state storage devices in the commercial and industrial sectors, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial communications networks for voice and/or data communications linked to the industrial internet of things (IIoT).
The Group is cash-generative, has a net cash position and is dividend paying.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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