Cml Microsystems Share Discussion Threads

[jakleeds] 24/6/2011 07:36

CML back to black
Created:14 June 2011Written by:Malar Velaigam
Semiconductor designer CML Microsystems has firmly returned to the black thanks to double-digit sales growth in both its wireless and storage divisions. And while similar growth rates are forecast this year, finance director Nigel Clark also expects to see significant uplifts in 2013 as a number of new product releases in the storage division increase the addressable market. The business, which designs and produces chips for solid-state storage and flash memory, has already garnered impressive traction, with sales rising 22 per cent in the year to £8.8m.

CML's wireless business - which designs and produces chips for digital and analogue radios - reported a 28 per cent rise in sales to £9.5m, reflecting increased orders from existing customers and more design wins. The group's smaller wireless telecoms business - which produces chips that send data over telecom lines and accounts for 12 per cent of sales - also registered growth, for the first time in three years.

Analysts at Cenkos Securities are expecting 2012 pre-tax profits to rise from £2.3m to £3.3m, giving adjusted EPS of 16.7p (11.7p). Last year's reported EPS benefited from a tax credit.


CML MICROSYSTEMS (CML)

ORD PRICE: 217p MARKET VALUE: £32.4m
TOUCH: 213-220p 12-MONTH HIGH: 218p LOW:65.5p
DIVIDEND YIELD: 1.6% PE RATIO: 12
NET ASSET VALUE: 117p* NET CASH: £2.3m



Year to 31 Mar Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2007 17.8 -3.21 -17.5 5.0
2008 17.1 -1.73 -4.1 nil
2009 16.1 -2.09 -14.3 nil
2010 18.0 -0.39 -0.2 nil
2011 22.1 2.32 17.9 3.5
% change +23 - - -
Ex-div:22 Jun

Payment:5 Aug

*Includes intangible assets of £3.5m, or 23p a share




More analysis of company results


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IC View:
GoodValueShares in CML are trading at an undemanding 13 times EPS estimates and, considering the impressive operational gearing the company enjoys, there is scope to significantly lift earnings on the back of further revenue increases. Good value.

[cockneyrebel] 20/6/2011 12:35

goes XD at the close tomorrow night if you want the divi.

CR

[jakleeds] 16/6/2011 14:14

Looking set for another breakout here

[roddiemac2] 15/6/2011 21:58

" why the muted reaction to what look like an excellent set of results?"

Liquidity has been down across the whole market for weeks.Companies disappointing get hammered. Companies producing good results get little share price reaction. These are dangerous times. It is right to be cautious. Against this backdrop , CML has produced good results, but new investors may be put off by the company`s five year record.

Given the right conditions, CML could do very well in the next few years.

Patience should pay.

[cockneyrebel] 14/6/2011 12:37

Why the muted reaction to what look like excellent results?

17.7p eps was way over forecasts. Got a tax credit but also had a property revaluation that offset that.

Back to paying a divi - that wasn't forecast. Even at a pretax level they did £2.3m pbt, well over forecasts despit the £400k property valuation writedown.

Quite amazed these were not up more on those results - must be scope for upgrades to the coming year I'd have thought - the outlook seemed decent.

All imo/dyor etc.

CR

[notsoshabby] 14/6/2011 07:36

results out.......
return to profitability
return to dividend
very positive forward potential


Chairman's statement     Introduction These results for the full trading year provide satisfying further evidence of the clear improvement in performance that your Company is achieving.   Particular encouragement can be drawn from the positive sales gains that were posted in all principal Group product areas and also in most major market territories, as the operating and financial review makes clear.   The achievement of a return to trading profitability provided opportunities for your management to reduce Group borrowings from an opening net debt position to a net cash position by the financial year end.   Results To summarise the results, Group revenues for the year just ended were £22.12m (2010: £18.02m) while gross profit was £15.37m (2010: £12.49m).  A profit before tax of £2.32m, which is arrived at after a £400k reduction in the estimated value of investment properties, compares with a loss the previous year (2010: loss of £386k).   Earnings per share of 17.64p diluted (2010: loss of 0.16p) reflect the benefit of an income tax credit that raised the Company's post-tax profit to £2.68m.   Dividend Your Directors' believe that shareholders should receive appropriate benefit according to the performance of their Company.  For the year ended 31 March 2008 the Board took the difficult but necessary decision to cease payment of a dividend for the first time since becoming a publicly listed company in 1984. I am pleased to report that in the present circumstances, the Directors are recommending payment of a final dividend of 3.5p per ordinary share to be paid on 5 August 2011 to all shareholders whose names appear on the register at close of business on 24 June 2011.   As mentioned at the interim stage, your Company transitioned to Standard Listing status during the year.  It is the view of your Board that this is the most appropriate listing for your Company given the rising administrative demands of a Premium Listing.  This does not prevent your Board electing to observe selected Premium Listing rules that it deems appropriate.   Prospects I see evidence for further progress by your Company in its aim of continuing future growth.  Subject to unforeseen circumstances, I have confidence that my expectations will be realised.   Once again, I cannot conclude my report to you without expressing the Board's thanks to your Company's employees for their skills and commitment towards its success.                    

[wiloughby2] 04/6/2011 22:45

Freegirl I totally agree. I have bought a few more this week at 209 and 212 and my target for later this year is comfortably north of £3.

[notsoshabby] 03/6/2011 08:22

starting to tick up nicely with the results out in 7 working days. Leaking news re divi?

[freegirl] 27/5/2011 08:47

have been buying here for a while, transactions very rarely reported.
For me it's not a question of if they will return to dividend it's more of how much.
I think there is a good upside potential to this share with the added bonus of the dividend.
In a market where it's difficult to see short term returns, IMO this is a likely winner short and long term.
Results due out 14th June.
DYOR

[wiloughby2] 17/5/2011 18:26

Bought a few here today (this morning) but the transaction has not reported/registered by the market manipulators.

[notsoshabby] 13/5/2011 08:22

have managed to build a small position - getting hold of these in any numbers is like buying hens teeth!
I would think the family might be pushing for the divi quite hard and the general consensus here looks very promising.
Roll on the results.

[wiloughby2] 07/5/2011 13:26

Hi ,
My contacts at HQ tell me that the car park has several bays marked reserved and that some really fine,shiny new motor cars have filled them in recent months.
Bearing in mind there are only circa 15.5 million shares in issue and that family and directors have a large holding, a return to dividend is a definite possibility!
My target price for October/November is £3.20 plus.Bearing in mind that aside from the main chip business which appears to be going well the freehold property this company has tucked away, if valued properly and independantly, is probably worth in excess of 50% of the market capitalisation.
All IMO, DYOR.

[gconvery] 06/5/2011 15:53

Moving back to the highs - showing strength during some awful markets....

[wiloughby2] 26/4/2011 12:02

A little rns of operational update would be good, to keep the share price travelling the right way before June's figures! wishfull thinking perhaps.

[gconvery] 13/4/2011 15:23

Nice and quiet here.....

[gconvery] 11/4/2011 16:20

On its way back up....

[wiloughby2] 08/4/2011 14:43

Time has of course answered the question. Another large exercise of options gave back their shorfall and then some. Price heading back towards 2.40 me thinks.

[wiloughby2] 12/3/2011 14:22

Any idea why some directors should bring their total position, after options, down. Did they forsee a drop in the shareprice from 205 to 185 or did they cause it ?

[cockneyrebel] 15/2/2011 07:37

Nice statement - on a PE of 12.5 for this year - even WLF is on a PE of 30 and that's a dog.

CML still miles ubdervalued for a chip co imo.

These are forecast to make £3m pbt this coming year, last time they were doing that was 2005-6 when they were £4 a share.

All imo/dyor etc.

CR

[gconvery] 03/2/2011 15:20

Difficult to buy in any size online....free float is limited

[thebridge] 03/2/2011 15:19

Ooops sold out a few days ago...wish I had'nt now!!

[chester] 03/2/2011 15:17

I added a few more today. I'm liking the look of this chart.

[gconvery] 03/2/2011 14:57

Breakout continues....slowly slowly....