RNS Number:1697S
CML Microsystems PLC
18 November 2003
CML MICROSYSTEMS PLC
YEAR END MARCH 2004 INTERIM RESULTS
Results broadly in-line with market expectations
CML Microsystems Plc ("CML"), which designs, manufactures and markets a broad
range of semiconductor products, primarily for the global communications market,
announces its Interim Results for the six months ending 30 September 2003.
CML's semiconductor solutions serve customers in the wire-line telecom, wireless
data, two-way radio, non-volatile storage and general-purpose RISC/DSP markets.
CML is listed on the London Stock Exchange and is traded OTC as an ADR in the
US. The Group has seven operating subsidiaries in the UK, Germany, the US and
Singapore.
Commenting on the results, George Gurry, Chairman said:
"The results for the six months trading period ending 30 September 2003 reflect
the modestly improving performance that I reported for the opening quarter, and
the outcome figures are in close line with internal budgets and reported current
market expectations."
Financial Highlights (comparisons are with the immediately preceding six months
period)
* Turnover (excluding acquisitions) of #6.71m (H2 '03: #5.50m), up 22%
* Acquisitions contributed #1.56m
* Operating loss of #247k (H2 '03: Loss #649k)
* Pre-tax loss of #207k (H2 '03: #337k)
Business Review
* Acquisition of Hyperstone AG, a fabless semiconductor company, for
Euro7.5 million (#5.25m) in July 2003
* Modestly improving performance continues
* Sales growth largely attributable to Far East markets, gains also made
in the US
* Traditional major European markets remain difficult
* Signs of firmer customer confidence appearing in some areas
Regarding prospects, George Gurry, Chairman said:
"Given the present market conditions, I am not expecting a significantly
improved performance in the short term, but I believe your Company should
continue its progress back to profitability for the current year.
"The strategies being followed in these challenging times are now beginning to
secure the potential for future growth and I remain confident that the group
will make significant strides as these measures take increasing effect."
Enquiries:
CML Microsystems Plc www.cmlmicroplc.com
Nigel Clark, Financial Director 020 7786 9600 (today)
Chris Gurry, Business Development Director 01621 875500 (thereafter)
Binns & Co PR
Peter Binns 020 7786 9600
Paul McManus 07980 541 893
Chairman's Statement
The results for the six months trading period ending 30th September 2003 reflect
the modestly improving performance that I reported for the opening quarter, and
the outcome figures are in close line with internal budgets and reported current
market expectations.
During the reporting period, and effective from 2nd July 2003, your Company
completed the acquisition of Hyperstone AG and the reported consolidated figures
include the performance of Hyperstone AG from that date.
Against the immediately preceding six month period turnover, excluding
Hyperstone, rose 22% from #5.502m to #6.714m. This improvement was fuelled
largely by growth from the Far East. The operational loss (excluding Hyperstone)
was reduced by 62% from #649k to #247k and the pre-tax loss was reduced by #337k
to #207k.
I should comment that your Board has a preference towards writing down
intangible assets, which includes goodwill, in the shortest practical and
permitted time. This results in the exceptional "goodwill" charge of #348k
against costs; the "goodwill" aspect of the acquisition is being fully written
off within three years.
When compared with the corresponding period last year, Group turnover increased
by 20% to #8.275m (2002: #6.885m) but the pre tax position (before exceptional)
deteriorated to a loss of #177k (2002: Profit #222k).
Although clear sales growth was achieved in Far Eastern markets, and gains were
made in the US, semiconductor sales into the Group's traditional major European
markets remained difficult during the period. Forward market visibility was
generally limited, but signs of firmer customer confidence were appearing in
some areas.
Given the present market conditions, I am not expecting a significantly improved
performance in the short term, but I believe your Company should continue its
progress back to profitability for the current year.
The strategies being followed in these challenging times are now beginning to
secure the potential for future growth and I remain confident that the group
will make significant strides as these measures take increasing effect.
G.W.Gurry
Chairman
18th November 2003
CML Microsystems Plc
Group Profit and Loss Account
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
Ended Ended Ended
Notes 30/09/2003 30/09/2002 31/03/2003
#'000 #'000 #'000 #'000
Turnover
Turnover from operations excluding acquisition 6,714 6,885 12,387
Turnover from acquisition 1,561 - -
8,275 6,885 12,387
Cost of sales (3,291) (2,362) (4,064)
Gross Profit 4,984 4,523 8,323
Distribution costs and administration expenses (5,329) (4,816) (9,634)
Exceptional goodwill written off 3 (348) - -
(693) (293) (1,311)
Other operating income 128 364 733
Operating (Loss)/Profit 4
From operations excluding acquisition (247)
From acquisition (318)
(565) 71 (578)
Interest receivable 70 151 256
Interest payable (30) - -
(Loss)/Profit on Ordinary Activities before Taxation (525) 222 (322)
Taxation 5 28 60 402
(Loss)/Profit on Ordinary Activities after Taxation (497) 282 80
Minority interest 3 (4) (3)
(Loss)/Profit Attributable To Shareholders (494) 278 77
Basic (Loss)/Earnings Per Share 6 (3.38p) 1.91p 0.53p
Statement of Total Recognised Gains and Losses
(Loss)/profit for the financial period (494) 278 77
Unrealised surplus on revaluation of properties - - 986
Currency translation differences on foreign
currency net investments (345) (717) (747)
Total (losses) / gains recognised since last Report (839) (439) 316
and Accounts
CML Microsystems Plc
Group Balance Sheet
Unaudited Unaudited Audited
As at As at As at
30/09/03 30/09/02 31/03/2003
#'000 #'000 #'000
Fixed Assets
Tangible assets 10,392 9,063 9,937
Intangible assets 3,828 - -
14,220 9,063 9,937
Current assets
Stocks 1,473 1,487 1,326
Debtors 3,184 2,489 2,480
Investments 7,343 8,742 8,255
Cash at bank and in hand 2,076 1,117 1,344
14,076 13,835 13,405
Creditors: Amounts falling
due within one year (8,749) (2,133) (3,325)
Net Current Assets 5,327 11,702 10,080
Total Assets less Current Liabilities 19,547 20,765 20,017
Provision for liabilities and charges (564) (539) (573)
Net Assets 18,983 20,226 19,444
Capital and Reserves
Called up Share Capital 736 731 731
Shares to be Issued 237 - -
Share Premium Account 3,380 3,241 3,241
Capital Redemption Reserve 255 255 255
Revaluation Reserve 986 - 986
Profit and Loss Account 13,389 15,995 14,228
Shareholders' Funds 18,983 20,222 19,441
Minority Interests - 4 3
18,983 20,226 19,444
CML Microsystems Plc
Group Cash Flow Statement
Unaudited Unaudited Audited
6 Months 6 Months 12 Months
Ended Ended Ended
30/09/2003 30/09/02 31/03/2003
#'000 #'000 #'000
Net cash inflow from operating activities 4,534 179 15
Returns on investments and servicing of finance 40 151 256
Taxation 253 (54) 123
Capital expenditure and financial investment (88) (104) (339)
Acquisition of Hyperstone AG (3,233) - -
Equity dividends paid (1,535) (1,534) (1,535)
Net cash outflow before financing (29) (1,362) (1,480)
Financing 144 4 4
Increase/(decrease) in cash 115 (1,358) (1,476)
Reconciliation of Operating Profit to Net Cash Inflow
from Operating Activities
Operating (loss)/profit (565) 71 (578)
Depreciation 352 274 625
Amortisation of goodwill 348 - -
Loss/(profit) on sale of fixed assets 7 (1) (6)
Decrease/(increase) in stock 173 146 307
Decrease/(increase) in debtors 1,552 (445) (126)
Increase/(decrease) in creditors 2,667 134 (207)
4,534 179 15
Reconciliation of Movement of Funds
Funds at start of period 9,599 11,773 11,773
Translation difference (295) (556) (698)
(Decrease)/Increase in cash 115 (1,358) (1,476)
Funds at close of period 9,419 9,859 9,599
Analysis of Funds
Cash at bank and in hand 2,076 1,117 1,344
Current asset investments 7,343 8,742 8,255
Funds at close of period 9,419 9,859 9,599
CML Microsystems Plc
Notes to the Interim Statement
1. Presentation of results
This interim Statement was approved by the directors on 17th November 2003.
The results for both the current and comparative period have been prepared using
accounting policies and practices consistent with those adopted in the 2003
Report and Accounts but have not been audited.
The audited results for the year ended 31st March 2003 are an abridged version
of the company's Report and Accounts which have been filed with the Registrar of
Companies and on which the auditors gave an unqualified audit opinion.
The financial information contained in this Interim Statement does not
constitute statutory accounts as defined by Section 240 of the Companies Act
1985.
All shareholders will receive a copy of this Interim Statement which can also be
obtained from the company's registered office at Oval Park, Maldon, Essex. CM9
6WG.
2. Dividends
The directors do not recommend the payment of an interim dividend.
3. Exceptional goodwill written off
Goodwill arising on the acquisition of Hyperstone AG is being amortised over a
period of 36 months from 2nd July 2003.
4. Operating loss
The operating loss for the period to 30th September 2003 is made up as follows:
#'000 #'000
Operating loss from operations excluding Hyperstone AG (247)
Operating profit of Hyperstone AG 30
Exceptional goodwill written off (348)
(318)
Operating loss for the period (565)
5. Taxation
The directors consider that tax will be payable at varying rates according to
the country of incorporation of a subsidiary and has provided on that basis.
6. Basic (loss)/earnings per share
The calculation of basic (loss)/earnings per share is based on the (loss)/profit
attributable to shareholders for the period and on the following weighted
average number of shares in issue:
No of ordinary 5p shares
6 months ended 30th September 2003 14,636,785
6 months ended 30th September 2002 14,619,304
12 months ended 31st March 2003 14,619,941
This information is provided by RNS
The company news service from the London Stock Exchange
END
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