LONDON Comms IC developer, CML Microsystems, increased turnover 40% to £11.6million for the six months ending 30 September 2004 with a pre-tax profit, after an exceptional goodwill write off, of £346 000 compared with a loss of £525 000 in the second half of the last financial year.
George Gurry, CML Microsystems chairman said that the trading results for the opening half are somewhat ahead of the level of improvement expected by the board.
These results include the first full contribution by Hyperstone, acquired in July 2003, and if the exceptional goodwill written-off in connection with this acquisition is excluded, pre-tax profit for the period shows a healthy improvement to £1.127million, up from a £177k loss in the previous year.
Gurry explained that the increase in turnover was led by firmly increasing sales of memory controller products, and similarly by rising shipments of the company’s telecom devices for applications within the markets of mainland China.
Gains were also achieved in sales of products aimed at radio and wireless data applications. Apart from the sales recorded, design wins are expected to result from new versions of radio communications products that were introduced into the market during the period.
The Essex-based group’s sales are now denominated largely in US dollar terms, while operating costs are principally incurred in sterling and Euro currencies, and, according to Gurry, any material further weakening in the US dollar exchange rate will not be helpful going forward. He also warned that order visibility remains short-term and, in particular, the gains achieved in the first-half within China will not be sustained during the final two quarters.