20th Mar 2020 06:51
(Alliance News) - CML Microsystems PLC said Thursday it expects its second-half revenue to the end of March to be in line with the first six-month period.
In the six months ended September 30, the radio frequency semiconductor manufacturer's pretax profit more than halved to GBP907,000 from GBP2.4 million the year before. Revenue slipped 13% to GBP13.1 million from GBP15.1 million.
In November, when announcing its interim results, CML said it was yet to see a "meaningful" uplift in order intake in the second half, due to the challenging conditions. However, CML was confident its second half would eventually see a sequential improvement, with a favourable product mix and continued tight cost control.
In a statement Thursday, CML said: "Sales and order bookings were improving as we moved through the period under review although ongoing disruptive influences associated with the coronavirus outbreak have affected progress. It is not possible at this stage to quantify the precise impact this will have on full year financial expectations but, based upon the latest information available, the board currently expects second half revenues to be similar to those recorded for the first six months. Gross margin as a percentage has continued to track above the prior full year."
CML also noted it has incurred a series of exceptional costs in the second half, on restructuring its operations and exploring potential M&A deals.
As a result, its pretax profit for the full year will fall "substantially" short of market expectations.
CML said its Chinese operations - based in Wuxi and Shanghai - came back on line at the end of February, but travel restrictions within the country have not yet been lifted.
"On a wider geographic view, the company continues to take appropriate steps to safeguard employees and to maintain business continuity as much as practically possible. Supply chain disruptions to date are minimal and of a short-term nature," CML said.
The company added: "Despite turbulent times, the board maintains its belief that the medium to long term growth drivers for our products and services are strong and, underpinned by a strong balance sheet with no debt, continues to expect a firm uplift in the group's performance as global negative influencers subside."
By Paul McGowan; [email protected]
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