LONDON (ShareCast) - (Sharecast News) - Semiconductor manufacturer CML Microsystems reported group revenues of £26.42m in its final results on Tuesday, down from £28.14m year-on-year.
The London-listed firm said its gross profit slipped to £19.57m for the year ended 31 March, from £20.25m a year earlier, while profit before tax was down to £1.37m from £2.98m.

Basic earnings per share totalled 8.98p, compared to 15.77p in the 2019 financial year.

The company said it had net cash of £8.48m at year-end, down from £12.81m at the beginning of the year, which the board said reflected record investment in research and development, the acquisition of PRFI, and two dividend payments totaling £1.33m.

It recommended a final dividend of 2.0p, making a total of 4.0p for the year - down from 7.8p in 2019, which the directors said was a result of prudence in light of the Covid-19 environment.

On the operational front, CML said communications made up 57% of group revenue in the year, up from 54%, with revenue in that sector slipping to £15m from £15.2m.

It said solid gains in the United States and Europe did not offset a fall in the Far East geography.

Five new communications products were released, including its first Raspberry Pi platform, with the board adding that the market was still exhibiting a number of growth areas.

Storage made up 43% of group revenue, down from 46% year-on-year, with revenue there £11.4m, down from £12.9m in 2019.

Sales in the second half were up 12% on the first half, the board said, adding that three new products were released.

The firm also highlighted the acquisition of Plextek RFI during the year, which it said complemented its organic growth plans, adding new independent services and a consulting income stream.

During the year, CML made "record" research and development investment of £8.46m, up from £8.24m year-on-year.

"There is no hiding from the fact that the year under review has been difficult, and the current environment is delaying realisation of the benefits to come from the hard work taking place behind the scenes," said group managing director Chris Gurry.

"The current financial year did commence with a healthier order book than the prior year, although it remains to be seen how this translates to actual market consumption as there may be an element attributable to Covid-19 related supply concerns amongst the customer base.

"Nevertheless, following the operational adjustments made across the prior year, the business is tuned to react swiftly to a revival in demand and the board remains convinced that a return to growth will be secured as conditions improve."

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