CML Microsystems PLC Trading Update and Notice of Results (7802S)
March 19 2021 - 2:00AM
UK Regulatory
TIDMCML
RNS Number : 7802S
CML Microsystems PLC
19 March 2021
19 March 2021
CML Microsystems Plc
("CML", the "Company" or the "Group")
Trading Update and Notice of Results
CML Microsystems Plc, which develops mixed-signal, RF and
microwave semiconductors for global communications markets, today
issues the following trading update for the period 1 October 2020
to 18 March 2021.
Disposal of Storage Business and Proposed Capital Return
As part of the strategic decision made by the Board to
exclusively focus on the global communications market, the Company
announced on 5 February 2021 that it had successfully completed the
sale of Hyperstone, the Group's storage division, for US$49
million. Net cash inflow from the sale, after transaction expenses,
was just over GBP33 million.
Subsequently, the Board announced a proposed capital return of
approximately GBP8.3 million to shareholders. This proposal was
ratified at a General Meeting of the Company on 18 March 2021 and
settlements will be made on or around 26 March 2021.
For the financial year to 31 March 2021, the Group's
profitability will be overwhelmingly dominated by the exceptional
profit arising from the sale of the Storage division and will also
include a nine month contribution to Group profits by the
division.
Continuing Core Business
At the time of the half year report, we announced that revenues
from voice-centric wireless applications had been heavily impacted
by the COVID-19 crisis and the situation across a wide range of
data-centric IIoT customers was mixed. The Board is pleased to
confirm that the order intake improvement seen during the final
weeks of the first half period continued through the second half.
On a constant currency basis, revenues slightly improved over the
first half (H1 FY21: GBP6.17m), with new order intake markedly
better.
Market intelligence suggests that conditions for voice
applications should improve through the first half of the new
financial year and, although the timing and extent of a full
recovery is yet to be determined, the sentiment does give cause for
cautious optimism. A general lengthening of lead times from raw
material suppliers and third-party manufacturing service companies
is currently in play across the semiconductor industry. The Company
has navigated that well so far, supported by the prior decision to
maintain higher levels of raw material inventory.
Subsequent to the return of capital, CML will start the new
financial year on 1 April 2021 with a very strong balance sheet,
including net cash in excess of GBP30 million, and a singular focus
on the industrial global communications market, which represents a
large and high growth market opportunity for the Company. The
Group's significant cash balance also provides it with the
financial flexibility to maximise its future growth potential.
Our recent strategy has been to significantly enhance the
product portfolio including entry into microwave and
millimetre-wave market applications. This has been achieved through
a combination of resource blend and new customer engagements.
Progress has been swift with the first products emanating from this
improved capability on track to be launched in the early part of H1
FY22. Early sampling of selected lead customers has generated
positive feedback.
Notice of Results
The Company currently expects to publish its results for the
period ending 31 March 2021 on Tuesday 15 June 2021.
CML Microsystems Plc www.cmlmicroplc.com
Chris Gurry, Group Tel: +44(0)1621 875
Managing Director 500
Nigel Clark, Group
Chairman and Financial
Director
Shore Capital
Advisory Tel: +44(0)20 7408 4090
Edward Mansfield
James Thomas
Corporate Broking
Fiona Conroy
SP Angel Corporate
Finance LLP Tel: +44(0)203 463 2260
Jeff Keating
Alma PR
Josh Royston Tel: +44 (0)20 3405
Caroline Forde 0212
Robyn Fisher
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBRGDXDGBDGBI
(END) Dow Jones Newswires
March 19, 2021 03:00 ET (07:00 GMT)
Cml Microsystems (LSE:CML)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cml Microsystems (LSE:CML)
Historical Stock Chart
From Apr 2023 to Apr 2024