Nov 20th 2012 - Edison Investment Research today published a report on CML Microsystems (CML.L, LSE:CML, LON:CML) entitled "Potential Inflection Draws Closer". In summary, the report says:
Solid progress in a difficult market puts CML on track to meet our full-year estimates with the first volume shipments from both major wireless chipset customers and from serial ATA (SATA) storage set to drive a stronger H2. With SATA chips set to start shipping in greater volumes next year, the prospect of an upwards inflection in growth has moved closer. Given CML’s high gross margins and a cost base that is expected to remain flat or even decrease, incremental growth should gear strongly into earnings. While the P/E rating of 14.6x 2014 is a premium to the sector, we feel it is warranted given the potential for upgrades and continued earnings growth.
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