Trading Update

RNS Number : 2307N

CML Microsystems PLC

24 October 2016

 

24 October 2016

CML Microsystems Plc

Trading Update

CML Microsystems Plc, ("CML" or "the Group"), which designs, manufactures and markets mixed-signal and Radio Frequency (RF) semiconductors, primarily for global communication and solid state storage markets, is pleased to provide the following update in respect of its trading for the six months ended 30 September 2016.

The Group announces that its unaudited figures indicate that revenues for the half year will be circa £13m, including a two month contribution of product revenues from its acquisition of Sicomm of £0.4m. Profit before tax is expected to be approximately £1.9m and cash generation continues to be healthy. As at 30 September 2016, the Group had net cash of over £11m, which includes the net effect of the cash element of the consideration paid for Sicomm and the cash balances within that business. The Group has no borrowings.

CML will publish its Half Year Results for the six months ended 30 September 2016 on Tuesday 22 November 2016. Any analyst wishing to attend the group analyst presentation should get in touch with Robyn McConnachie at Alma PR on [e-mail] or [phone].

Chris Gurry, Group Managing Director of CML, commented:

"We're pleased with our first half performance. CML is focused on two highly niche industrial storage and communication markets where the quality and reliability of our technology sets us apart and makes us an integral part of our customers' products. The Group is seeing the benefits of our strong focus on R&D which remains a key part of our strategy as we continue to build for the future."

"The contribution from Sicomm to date has been pleasing, in line with our expectations and we look forward to the second half of the year with confidence."

The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

CML Microsystems Plc Chris Gurry, Group Managing Director Neil Pritchard, Group Financial Director	www.cmlmicroplc.com Tel: [phone]
Cenkos Securities plc Jeremy Warner Allen (Sales) Max Hartley (Corporate Finance)	Tel: [phone]
SP Angel Corporate Finance LLP Jeff Keating	Tel: [phone]
Alma PR Josh Royston Caroline Forde Robyn McConnachie	Tel: [phone] Tel: [phone] Tel: [phone]

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 no borrowings and is dividend paying.

 

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