1st Feb 2019 08:34
LONDON (Alliance News) - Shares in CML Microsystems PLC plunged Friday after the semiconductor manufacturer said its new order bookings in the second half were behind management expectations.
Shares in CML Microsystems were down 25% in early morning trading at 325.00 pence each.
The company said it expects its revenue in the second half to be behind its first half and its full year revenue to be 12% behind the year before.
CML also said its profit for the year will be "materially below" current market expectations.
For the six months ended September 2018, CML reported pretax profit of GBP2.37 million on revenue of GBP15.1 million.
For the financial year ended March 2018, the firm reported pretax profit of GBP4.6 million on revenue of GBP31.7 million.
CML attributed its second half performance on the "tangible effects of a softening" Chinese economy coupled with "on-going geopolitical issues". CML said this has resulted in weaker demand.
In a statement, the company said: "Whilst this is disappointing to report, the board believes that medium to long term growth drivers for our products remain particularly strong and we are focussed on driving the business over this period and our strategy remains unchanged. We are maintaining levels of investment in product R&D on the back of many consecutive years of profitability.
"The growing product portfolio and our expanded global sales coverage is driving the value of our sales opportunity pipeline significantly higher. Despite the challenges associated with current market dynamics, we believe that the company remains very well placed to benefit as these external situations normalise."
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