11th Mar 2015 09:42
LONDON (Alliance News) - CML Microsystems PLC shares were higher Wednesday morning after it said its operating results are currently tracking ahead of market expectations for the full year, with its second-half performance set to exceed the first half.
The designer and maker of semiconductors said demand for its flash memory controller products was continuing to firm and the number of new customer opportunities in its industrial storage market for its expanded product range has grown. Revenue in its wireless semiconductor products unit has also improved following a weaker first half of the financial year, helped by the first production shipments into satellite machine-to-machine applications.
It added that margins and operating costs have remained within its target range, driving up cash balances.
"The board remains confident that full year market expectations will be met and that the management strategies being followed will deliver a return to annual growth thereafter," it said.
CML had reported underlying pretax profit of GBP1.2 million in the six months to end-September, the first half of its financial year, down from GBP3.2 million a year earlier, as revenue declined to GBP10.2 million, from GBP13.0 million. Its operating profit was GBP1.1 million, down from GBP3.1 million.
Analysts were expecting it to report a pretax profit of GBP2.6 million for the year as a whole, according to a consensus of three analysts on Morningstar, down from GBP5.8 million in its last financial year.
CML Microsystems shares were up 5.7% at 383.00 pence Wednesday morning,
By Steve McGrath; [email protected]; @stevemcgrath1
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