Witham, Essex-based CML Microsystems Plc says a poor showing by its Traffic Division has resulted in a shortfall of the company’s overall interim results. Although CML Microsystems posted an increase in pre-tax profit of 3% to the half year to September 30, this was below its expectations and it forecasts that the second half of the year will have a flat third quarter. It says the Traffic Division experienced a reduction in equipment sales and a rise in costs associated with the rapid expansion of its scope and these were the reasons for its reduced contribution, which stood at 28% of the total turnover. This year CML Microsystems acquired two companies. Its Southampton-based traffic controller, Microsense Systems Ltd subsidiary bought for cash the business and some of the assets of London-based Camdelta Ltd, a maintainer and installer of traffic systems throughout the London and the South East regions. And for a combination of cash and new shares, it bought the Rochester, Kent-based semiconductor circuits design company, Integrated Micro Systems Ltd (CI No 2,453). It also bought 400,000 of its own shares in at UKP2.62 a share. CML Microsystems is primarily a designer of electronic systems. It is structured in five trading divisions: Witham-based Consumer Microcircuits Ltd and MX-COM Inc in Winston-Salem, North Carolina which design electronic devices for communication systems; Microsense, the traffic control section; Radio Data Technology Ltd which designs and produces data communication equipment; and Skyline Communications Ltd which designs and produces electronic security and video equipment. MX-COM contributed 29% of the company’s turnover. Commenting on the results, chairman George Curry said given the shortfall against expectations and the cost of inward investment it was unlikely that the year-end results would be vastly improved, but that the firm was pursuing rewarding paths for future growth.
