Trading Statement

CML Microsystems PLC 27 February 2002 CML Microsystems Plc Trading Update; Full Year Profits still anticipated CML Microsystems Plc ('CML' or 'the Group'), which designs, manufactures and markets a broad range of semiconductor products primarily for the global communications market, including narrow band wireless data, wireline telecommunications and private mobile data, announces the following statement with regard to trading for the current financial year to 31 March 2002. The Group's full year results are due to be announced in June. At the time of CML announcing its interim results in November 2001, semiconductor shipments were running significantly below anticipated levels and this was coupled with poor visibility for shipments in the fourth and final quarter of the current year. As a result of this there was a severe reduction in market expectations for the Group's trading results for this financial year. Negative market conditions still prevail across all markets where CML is present - the UK, Continental Europe, Asia and North America - and it is now clear that the shipments for the fourth quarter will fall some way short of revised expectations. Although overheads have now been reduced, the cost savings will only add a small benefit to CML's second half's results. Regrettably, it is now clear that expectations for the Group to make a small profit in the second half are unrealistic although profitability for the year as a whole should be maintained. Commenting on prospects, CML Chairman George Gurry said: 'With no improvement in visibility for the short term and no immediate signs of recovery I must now also expect a difficult first half for next year. Despite adverse conditions, the Group remains focused on investing for organic growth whilst pursuing an acquisition policy likely to benefit from evolving opportunities that should present themselves given the market's downturn. Like other members of the board I remain confident that the Group is well placed to return significant growth as its global market conditions improve.' ENDS Enquiries: Nigel Clark CML Microsystems Plc 01621 875500 Chris Gurry CML Microsystems Plc 01621 875500 Simon Ellis/Peter Binns Binns & Co. PR Ltd 020 7786 9600 This information is provided by RNS The company news service from the London Stock Exchange
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