19th Nov 2013 09:54
LONDON (Alliance News) - CML Microsystems PLC Tuesday said that it expects a full-year of profit growth following a strong performance in the half-year ended September 30.
CML Microsystems designs and manufactures semiconductor products for the communication and data storage markets. It has recently transitioned into acting solely as a semiconductor business following its exit from its loss-making equipment segment, Radio Data Technology Limited.
The company posted revenue of GBP13.0 million, up from GBP12.4 million in the previous year. Pretax Profit was up to GBP3.2 from GBP2.5 million in the previous year.
Storage revenues were up 7%, CML said, boosted by customers transitioning to higher-performance flash memory controller products. Flash memory controllers manage data stored on flash memory drives like USB drives or memory cards. Telecom revenues were down 5%, but remained in line with expectations, CML said.
"The first half of the year has seen record half year results and reflects the Group's focus on delivering sustainable growth," said Managing Director Chris Gurry in a statement. "Our key addressable markets of storage and wireless each exhibit compelling growth opportunities."
However, CML cautioned that its order book visibility remained relatively short term, and that the lead times on raw materials can sometimes extend as long as 16 weeks. As a result of this the timing of revenue recognition in the second half could be effected, CML warned.
Two members of CML's board, founder and non-executive Chairman George Gurry and non-executive Director George Bates, passed away in October.
Shares in CML were trading up 4.23% at 555.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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