CML Microcircuits Regulatory News (CML)

1 August 2018

CML Microsystems Plc

Interim Management Statement

CML Microsystems Plc ("the Group"), which designs, manufactures and markets mixed-signal and RF semiconductors, primarily for global communication and solid state storage markets, today held its Annual General Meeting at Pontlands Park, Chelmsford, Essex.

Subsequent to the formal proceedings of the AGM the following update on current trading was read to shareholders by the Chairman:

Interim Management Statement

This statement relates to the period from 1 April 2018 to 1 August 2018 and includes reference to the unaudited results for the Group's opening trading quarter for the financial year ending 31 March 2019.

Trading Update

Revenue, operational costs and resulting profitability for the opening months of the financial year, which includes the first quarter, were marginally ahead of internal expectations. That said, the caution already communicated around raw material lead times and customer purchasing patterns continued to impede performance in some areas. Therefore, taking these considerations into account, the full year outlook remains unchanged, with revenue and profit progress still expected to be weighted towards the second half.

In line with our stated growth strategy, we have sustained our high levels of research and development activities with several new products projected to be launched to market during the latter part of the current financial year, adding to our potential future revenue streams.

The Group's routes to market continue to be enhanced globally, most recently through a distribution agreement for Storage products signed with a new Japanese partner.

The execution of the growth strategy means that while mindful of the above current issues, the Board is confident in the continued success of the business.

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 no borrowings and is dividend paying.