CML Microcircuits Regulatory News (CML)

CML Microsystems Plc

Interim Management Statement

CML Microsystems Plc ("the Group"), which designs, manufactures and markets a broad range of semiconductors, primarily for global communication and data storage markets, today issues the following Interim Management Statement. This statement refers to the Group's trading results for the period from 1 October 2013 to 14 February 2014 and is provided in accordance with the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

Trading Update

The Group's underlying operating performance continues to be ahead of the prior year comparable period.

The shipment of SATA controllers continued to increase and tangible progress was made with numerous global opportunities following the release of a new SD/MMC controller earlier in the year. Within the Group's target storage markets, demand for mature flash memory controller products was slightly weaker during the period and this was partially a result of temporary supply chain abnormalities.

Semiconductor shipments into the professional and industrial wireless markets reflected normal purchasing trends for the second half year period. The product mix favoured newer devices targeted at digital baseband and RF applications over the Group's more mature, low function-count parts. Key new customer development projects utilising Group chip-set solutions continue to move closer to production status.

Gross margins and operating costs have both improved following the exit of the equipment segment in the first half. Net cash reserves continued to rise and are in line with market expectations.

There have been no other material events or transactions to report since 1 October 2013.

Outlook

The anticipated product mix combined with an improvement in gross margins and administrative costs, enables the Board to remain confident that a firm full-year improvement in profitability will be recorded, in line with expectations, despite the fact that revenues from the continuing business are likely to be broadly in line with the prior full financial year.