AGM Interim Management Statement

RNS Number : 3576H

CML Microsystems PLC

31 July 2019

 

31 July 2019

CML Microsystems Plc

AGM Interim Management Statement

CML Microsystems Plc (the "Group" or the "Company"), which designs, manufactures and markets semiconductors, primarily for global communication and solid state storage markets, today issues the following trading update at its AGM for the period 1 April 2019 to 31 July 2019 and includes reference to the unaudited results for the Group's first quarter for the financial year ending 31 March 2020.

Trading Update

Revenue, gross margin and underlying profitability for the opening months of the financial year to 31 March 2020 have met internal expectations and are in accordance with the outlook provided at the time of the FY19 results in June 2019.

Market conditions remain unchanged.  Order intake for Communications is exhibiting some resilience, whilst in the Storage market the ongoing geo-political issues continue to have an effect, most notably in the USA.  As and when conditions change, we will update shareholders accordingly.

We anticipate the current year to be one of stabilisation, and believe that the foundations are in place to drive revenue growth as the trading environment improves.

CML Microsystems Plc Chris Gurry, Group Managing Director Neil Pritchard, Group Financial Director	www.cmlmicroplc.com Tel: [phone]
Shore Capital Edward Mansfield James Thomas	Tel: [phone]
SP Angel Corporate Finance LLP Jeff Keating	Tel: [phone]
Alma PR Josh Royston Caroline Forde	Tel: [phone]

About CML Microsystems PLC

CML designs and develops semiconductors for the industrial storage and communications markets. The Group utilises a combination of in-house and outsourced manufacturing and has trading operations in Europe, the Far East and USA. CML targets niche markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading telecoms equipment providers and industrial product manufacturers.

The spread of its customers and products largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the ever increasing trend towards solid state storage devices in the commercial and industrial sectors, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial communications networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The Group is cash-generative, has a net cash position and is dividend paying.

 

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