CML Microsystems, the UK chipmaker specialising in narrow band wireless data and private mobile radio, has warned it could register a loss for the second half of its financial year.
The company still expects to make a profit for the full year, but says shipments for the fourth quarter will fall short of even revised expectations and that reductions in overheads will only make a small difference to the second half's results.
The company's broker, Beeson Gregory, expects pre-tax profits of £1.7m for the full year to 30 March, compared to an earlier forecast of £2.6m. Profit last year was £5.3m.
CML said: "Negative market conditions still prevail across all markets where CML is present -- the UK, continental Europe, Asia and North America -- and it is now clear that shipments for the fourth quarter will fall some way short of revised expectations.
"Expectations for a small profit in the second half are unrealistic although profitability for the year should be maintained."
George Gurry, chairman, also expects a "difficult" first half of the next financial year, but says the company remains open to making acquisitions.
The news follows CML's comments at the time of its interim results in November 2001 when it said that semiconductor shipments were running "significantly below" anticipated levels.