17th Feb 2014 10:24
LONDON (Alliance News) - CML Microsystems PLC Monday said it is still confident it will post an improved full year profit, after its exit from its loss-making equipment business in the first half of the year led to reduced operating costs and higher gross margins.
In a statement, the company now focused on semiconductors, said it expects its revenues from its continuing operations in the year to end-March to be broadly in line with the revenues it booked in its last financial year.
When it released its fiscal 2013 results last June, it had said it would exit its radio data technology business. It completed that in the first half of this year, selling certain intellectual property and assets and liquidating the rest of the business.
The semiconductor company said Monday that it has seen weaker demand for mature flash memory controller products since the start of October, which it said was partly due to temporary supply chain abnormalities. Still, it has been selling more of its newer devices targeted at digital baseband and Radio Frequency applications.
It added that its net cash reserves have continued to rise, and are in line with market expectations.
Shares in CML were trading up 0.6% at 611.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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