LONDON CML Microsystems plc swung to a pretax loss in the first half and said it expects second-half losses to be above those recorded in the first half.
The company reported Tuesday (Nov.21) a pretax loss of £832,000 for the six months ended September 30 compared with profits of £1.42 million for the corresponding period last year. Turnover was down 34 percent for the period to £9.6 million.
Part of the problem, CML Microsystems (Maldon, England) said, was a sharp reduction in product shipments to a key memory card controller customer in the U.S. "Any confidence that this reduction would be of a short-term nature has been dispelled by their recently announced decision to exit the flash memory market area where the group’s Hyperstone products were used", commented George Gurry, CML's chairman.
Gurry added that he is disappointed with the results and the present outlook for the second half, "but I expect a return to profitability reasonably soon thereafter."
The company said new product developments in the memory controller and programmable platform areas have experienced difficulties and delays. "As a result, it is unlikely that key product introductions now expected in the coming months will deliver revenue benefit in the current financial year, and consequently second-half losses will be materially above those recorded in the first-half."
Gurry said the company is "taking steps to improve the group’s performance in this area."
On a more positive note, the company said it is seeing increased design-ins as a result of higher integration of features in its range of wireline modems for data communication, and added customers are entering production phase of two-way radio gear based on CML's proprietary FirmASIC technology