CML Microsystems plc (LON:CML) said full year profit will exceed market forecasts after a strong second half performance.
Shares rose 7.28% to 466.65p in morning trading.
The maker of radio frequency semiconductors for the industrial storage and communications markets reported that unaudited figures indicated that annual revenue was above £27.6mln and profit before tax will exceed analysts’ expectations at about £4.2mln.
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New order bookings were robust, boosted by the acquisition of China-based Wuxi Sicomm Technologies Ltd in the first half. Sicomm develops integrated baseband processors and radio frequency semiconductors for global wireless communication markets.
CML, which publishes its annual results on 13 June, added that cash generation was “healthy” with a net balance of £12.4mln at 31 March.
At the half year results in November, the company reported a 28% increase in pre-tax profit to £1.94mln and a 19% increase in revenue to £13.04mln, supported by a weaker pound and a two-month contribution from Sicomm. CML said the results “materially exceeded” initial expectations for the period and the second half had “begun well”, adding that it was confident of a full year increase in revenue and profits.