1st Apr 2026 12:34
(Alliance News) - CML Microsystems PLC on Wednesday said it expects to return to pretax profit in financial 2026, despite failing to swing to operating profit in the second half.
The Essex, England-based developer of mixed-signal, radio frequency and microwave semiconductors had previously anticipated a return to operating profitability in the second half of the year ended March 31, which did not materialise, despite revenue growing by about 18% compared to the first half.
Shares in CML Microsystems were down 5.8% to 210.00 pence each on Wednesday afternoon in London.
The company said the revenue mix from order intake "has reduced our second half operating margin due to a greater share of lower‑margin non‑recurring engineering income."
It also said that the continuation of the investment in its Silicon Valley operations weighed on second-half profit, despite delivering capacity and efficiency improvements.
CML Microsystems expects to report full-year revenue of more than GBP20 million, and statutory pretax profit of approximately GBP1.8 million. It posted revenue of GBP22.9 million, and a pretax loss of GBP766,000 in financial 2025.
Year-end net cash balances are predicted to be around GBP11 million, including a GBP3 million balancing payment relating to the land disposal at the company's UK headquarters. The final plot was sold on March 27.
The company expects these timing effects to unwind in the 2027 financial year.
"A number of industry issues, particularly around elevated inventory levels and supply chain constraints, are expected to show further progress," CML added.
CML will publish preliminary full‑year results on June 16.
By Martin Miraglia, Alliance News reporter
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