CML returns to profit

23rd Nov 2010 17:56

Strong demand for two-way radio and flash memory cards has helped semiconductors supplier CML Microsystems return to profit in the first half. Revenues jumped 56% to £11.2m in the six months to September 2010. A loss of £1.13m was turned into a profit of £1.27m. CML's main markets are wireless and storage. The wireless side is benefiting from growth in analogue two-way radios and TETRA radios. CML produces the controller chip for flash memory cards and this market is growing rapidly. CML has moved into a net cash position at the end of September 2010. Net cash is expected to be £663,000 at the end of March 2011. Cash flow should continue to be strong and net cash of more than £8m at the end of March 2013. Trading continues to be strong. Cenkos forecasts a profit of £2.1m for the year to March 2011. Despite the good figures there was some profit-taking in the shares. The share price fell 10p to 153.5p but remain more than quadruple their level 12 months ago. They are trading on 15 times prospective 2010-11 earnings. CML has transferred from a premium listing to a standard listing.