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LONDON (Alliance News) - Semiconductors maker CML Microsystems PLC said Tuesday it expects annual profit and revenue to fall sharply amid tough market conditions which have continued into the new financial year.
For the year ended March, CML expects to report pretax profit of close to GBP3 million on revenue of GBP28 million.
The year prior, CML reported pretax profit of GBP4.6 million on revenue of GBP31.7 million. This would imply a fall of around 35% in profit and 12% in revenue on the year prior.
CML emphasised that, despite the expected fall, the revenue performance is "marginally better" than what it had forecast in February. The firm also added it has a "robust" balance sheet, with a net cash position of GBP12.8 million at the end of March.
"Trading in the first few weeks of the new financial year has been similar to that experienced in the preceding few months, with market and geopolitical headwinds continuing to affect performance," CML explained in a statement.
"A key new Storage product release took place in February 2019 and is currently being evaluated by a number of early adopter customers prior to full production release," CML added. "This product significantly increases the size of the group's serviceable market and is expected to be a major growth contributor in future years."
"The growing product portfolio and our expanded global sales coverage is driving the value of the group's sales opportunity pipeline significantly higher," CML continued. "Despite the challenges associated with current market dynamics, the board believes that the company remains very well placed to benefit as these external situations normalise."
Shares in CML were 0.7% higher at 294.00 pence on Tuesday. Full-year results are due to be released on June 11.