19th Nov 2024 15:23
(Alliance News) - CML Microsystems PLC on Tuesday said profit declined nearly 60% in the first half of its current financial year, as costs increased due to its prior acquisition of Microwave Technology Inc.
The Essex, England-based developer of mixed-signal, radio frequency and microwave semiconductors for communications markets said pretax profit for the six months that ended September 30 fell 57% to GBP815,000 from GBP1.9 million the year before.
This was primarily due to cost of sales increasing 46% to GBP3.8 million from GBP2.6 million last year, and distribution & administration costs rising 27% to GBP8.0 million from GBP6.3 million.
Revenue grew 18% to GBP12.5 million from GBP10.6 million, which included a GBP3.5 million contribution from products associated with the group's acquisition of Microwave Technology in October 2023.
"The maiden inclusion of Microwave Technology in the opening six-month period drove an increase in expenses against the prior year equivalent. One-off costs associated with US national security compliance activities and a loss on foreign exchange also contributed," the company explained.
CML Microsystems declared an interim dividend of 5 pence per share, unchanged from the year before.
Managing Director Chris Gurry said: "The progress we've made this period despite the ongoing headwinds in some industrial markets showcases the resilience and adaptability of our business model. We continue to expand our market position as we navigate industry-wide challenges by diversifying and innovating our product portfolio to target adjacent markets that offer the most potential. Long-term customer relationships with blue-chip organisations remain strong, underscoring our reputation as a trusted technology partner.
"While market conditions remain subdued in the near term, our ongoing investments, strategic initiatives and a strong balance sheet lay the foundations on which to build sustained, meaningful growth in the medium term."
Shares in CML Microsystems were down 12% at 224.66 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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