LONDON Chip design group CML Microsystems plc (Maldon, England) held sales steady for the half year ended September 30 at £8.2 million, compared with £8.5 million for the corresponding period last year, and warned that tough conditions had forced it to start reducing operating costs.
The company, which has operations in the UK, Germany, the US, Singapore, China and Taiwan, recorded losses before tax of £1.3 million, compared with £1.1 million last time.
Commenting on the results, George Gurry, Chairman said: "The results for the opening six-month period of the current trading year reflect the unexpected downturn in demand that became evident across many group markets during closing months."
Gurry added the recent shortfall in expected sales and the broad customer and financial situations "will make progress in the second half difficult to achieve. Steps to reduce the Group’s operating costs have commenced but are not expected to show benefit to this year’s results.”
"My earlier expectations that the results for this period would provide clear evidence of a continuing improvement in the group's performance have been negated by the constraints on expenditure and product investment adopted by customers following recent global financial concerns," added Gurry.