Shares in CML Microsystems Plc (LSE:CML), a maker of semiconductors for the telecoms market, tumbled 11% to 227.2p after it reported a fall in profits amidst ongoing headwinds in several of its markets.
Revenue of £12.5 million was generated in the six months ended 30 September, up 18% versus a year earlier, though this was entirely down to the £3.5 million contribution from products associated with the acquisition of MwT a year ago.
Profit before tax plunged 56% to £0.82 million, while profit from operations was down 64% to £0.58 million and adjusted EBITDA down 11% to £2.9 million.
The board kept the interim dividend at 5p per share, with cash balances at period end of £15 million, down from £18.2 million at the end of March.
With progress made on expansion into adjacent market segments to target a wider customer base, and long-term relationships with existing blue-chip customer said to "remain strong", managing director Chris Gurry said: "The progress we've made this period despite the ongoing headwinds in some industrial markets showcases the resilience and adaptability of our business model."
He added: "While market conditions remain subdued in the near term, our ongoing investments, strategic initiatives and a strong balance sheet lay the foundations on which to build sustained, meaningful growth in the medium term."
The shares fell below 220p in early trading, their lowest since 2020.