CML Microsystems (LSE:CML) reported a 27% year-on-year revenue decline for the first half of 2025, reflecting ongoing market destocking and supply chain disruptions. Despite the setback, the company maintains a positive medium-term outlook, underpinned by a series of operational improvements — including the relocation of its MwT operation in Silicon Valley and successful ISO 9001 re-certification. Strengthening order intake also points to a potential recovery as market conditions normalise.
As part of its strategy to diversify revenue and broaden market reach, CML secured a major contract with a leading GNSS equipment manufacturer, reinforcing its position in high-performance wireless communications. The company is additionally preparing to launch a new integrated chip for Digital Radio Mondiale, targeting rising adoption in India and China.
CML’s outlook remains challenged by negative profitability, weak cash flow, bearish technical indicators, and a valuation hindered by a negative P/E ratio. However, its dividend yield offers a degree of support while the company works to re-establish revenue momentum.
More about CML Microsystems
CML Microsystems plc designs and manufactures mixed-signal, RF, and microwave semiconductors serving global communications markets. With operations in the UK, Asia, and the US, the company focuses on high-growth niches such as secure data transmission, telecoms infrastructure upgrades, and private wireless networks linked to the industrial internet of things (IIoT).
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