Trading Update and Notice of Results

RNS Number : 9052A

CML Microsystems PLC

28 September 2022

 

28 September 2022

CML Microsystems Plc

("CML", the "Company" or the "Group")

Trading Update and Notice of Results

Positive momentum, trading ahead of market expectations

CML Microsystems Plc (the "Group" or the "Company"), which develops mixed-signal, RF and microwave semiconductors for global communications markets, is pleased to today issue a trading update for the first half of the current financial year (six-month period to 30 September 2022).

The Board is pleased to report that trading for the first half has been strong. Revenues are expected to be well ahead of last year on a constant currency basis and have been further boosted by an exchange rate tailwind. Gross margin has remained robust whilst overheads are in line with expectations. As a result, profitability is expected to be significantly ahead of management's earlier expectations.

At the current rate of trading and based on current exchange rates, the Board expects that for the full year ending 31 March 2023 both revenues and profitability will be ahead of market expectations.

Research and development activities, operational investments and the introduction to market of new products are all proceeding well, and the forward order book remains healthy.

The Board remains confident in the Group's strategy and its ability to deliver significant, sustainable growth over the coming years.

Notice of Results

CML will publish its Half Year Results for the period to 30 September 2022 on Tuesday 22 November 2022.

This announcement relates to the disclosure of information that qualified or may have qualified as inside information for the purposes of article 7 of the market abuse regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (withdrawal) act 2018.

Enquiries:

CML Microsystems Plc Chris Gurry, Group Managing Director Nigel Clark, Executive Chairman	www.cmlmicroplc.com   Tel: [phone]
Shore Capital (Nominated Adviser and Broker) Advisory Toby Gibbs James Thomas John More  Corporate Broking Fiona Conroy	Tel: [phone]
Alma PR Josh Royston Andy Bryant Matthew Young	Tel: [phone]

UK MAR: This announcement is released by the Company and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the EUWA ("UK MAR"), encompassing information relating to the trading performance of the Company. For the purposes of UK MAR and Article 2 of the binding technical standards published by the Financial Conduct Authority in relation to MAR as regards Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Chris Gurry, Group Managing Director .

About CML Microsystems PLC

CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication 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 commercial and industrial product manufacturers.

The spread of its customers and diversity of the product range 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 appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The Group is cash-generative, has no debt and is dividend paying.

 

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