Semiconductor company CML Microsystems warned Friday that annual profits would come in 'materially below' market expectations as revenues were dented by a slowing Chinese economy and subdued customer demand.
Second half revenues were expected to come in below those achieved during the first 6 months and full year revenues to be approximately 12% lower than the prior 12-month period, the company said.
The company warned in its first half update that sales in the second half would come under pressure blaming weaker automotive sales and extended raw material supply chain lead times, but a slowing Chinese economy exacerbated the decline.
'Given the expected sales performance, the company therefore expects revenues and profit before tax to be materially below current market expectations,' the company said.
The company attempted to reassure investors performance would improve once the 'external situation' normalise.
'Despite the challenges associated with current market dynamics, we believe that the company remains very well placed to benefit as these external situations normalise,' CML said.