REG - CML Microsystems PLC - Half-year Report <Origin Href="QuoteRef">CML.L</Origin> - Part 2

CML MicrosystemsAnnouncement

22/11/2016 07:08

- Part 2: For the preceding part double click  ID:nRSV7308Pa 

included in the consolidation taken as a whole together with a
description of the principal risks and uncertainties that they face. 
 
The Directors are also responsible for the maintenance and integrity of the
CML Microsystems Plc website. Legislation in the UK governing the preparation
and dissemination of the financial statements may differ from legislation in
other jurisdictions. 
 
11 Basis of preparation 
 
The basis of preparation and accounting policies used in preparation of the
Half Yearly Financial Report are the same accounting policies set out in the
year ended 31 March 2016 financial statements, with the exception of the
additional accounting policy item and presentation: 
 
Externally acquired intangibles 
 
Externally acquired intangible assets have been recognised in accordance with
the provisions of IFRS3 Business Combinations in relation to the acquisition
of Sicomm (note 8).  These acquired intangibles have been amortised in
accordance with the following: 
 
o  Brand                                                     10 years from
date of acquisition 
 
o  Customer relationships                     9 years from date of
acquisition 
 
o  Intellectual property                             10 years from date of
acquisition 
 
Amortisation of the above acquired intangibles assets is recognised on
consolidation and reported in distribution and administration costs in the
consolidated income statement. 
 
Adjusted EBITDA 
 
Adjusted earnings before interest, tax, depreciation and amortisation
('Adjusted EBITDA') is defined as profit from operations before all interest,
tax, depreciation and amortisation charges and before share-based payments. 
The following is a reconciliation of the Adjusted EBITDA for the three periods
presented: 
 
                                                        Unaudited     Unaudited     Audited   
                                                        6 months end  6 months end  Year end  
                                                        30/09/16      30/09/15      31/03/16  
                                                        £'000         £'000         £'000     
                                                                                              
 Profit after taxation (Earnings)                       1,721         1,248         2,925     
 Adjustments for:                                                                             
 Finance income                                         (17)          (20)          (55)      
 Income tax expense                                     217           266           399       
 Depreciation                                           358           121           254       
 Amortisation of development costs                      1,849         1,661         3,330     
 Amortisation of intangibles recognised on acquisition  26            -             -         
 Share-based payments                                   72            49            117       
 Adjusted EBITDA                                        4,226         3,325         6,970     
 
 
12 General 
 
Other than already stated within the Chairman's statement and Group Managing
Director's statement and operational and financial review there have been no
important events during the first six months of the financial year that have
impacted this Half Yearly Financial Report. 
 
There have been no related party transactions or changes in related party
transactions described in the latest Annual Report that could have a material
effect on the financial position or performance of the Group in the first six
months of the financial year. 
 
The principal risks and uncertainties within the business are contained within
this report in note 9 above. 
 
In the segmental analysis (note 1) inter-segmental transfers or transactions
are entered into under commercial terms and conditions appropriate to the
location of the entity whilst considering that the parties are related. 
 
This Half Yearly Financial Report includes a fair review of the information
required by DTR 4.2.7/8 (indication of important events and their impact, and
description of principal risks and uncertainties for the remaining six months
of the financial year). 
 
This Half Yearly Financial Report does not include all the information and
disclosures required in the Annual Report, and should be read in conjunction
with the consolidated Annual Report for the year ended 31 March 2016. 
 
The financial information contained in this Half Yearly Financial Report has
been prepared using International Financial Reporting Standards as adopted by
the European Union. This Half Yearly Financial Report does not constitute
statutory accounts as defined by Section 434 of the Companies Act 2006. The
financial information for the year ended 31 March 2016 is based on the
statutory accounts for the financial year ended 31 March 2016 that have been
filed with the Registrar of Companies and on which the Auditor gave an
unqualified audit opinion. 
 
The Auditor's report on those accounts did not contain a statement under
Section 498(2) or (3) of the Companies Act 2006. This Half Yearly Financial
Report has not been audited or reviewed by the Group Auditor. 
 
A copy of this Half Yearly Financial Report can be viewed on the Company
website www.cmlmicroplc.com. 
 
13 Approvals 
 
The Directors approved this Half Yearly Report on 21 November 2016. 
 
Glossary 
 
ATA                         an advanced technology attachment 
 
DTR                        Disclosure and Transparency Rules 
 
EU                          European Union 
 
IAS                          International Accounting Standard 
 
IC                            integrated circuit 
 
IIoT                         Industrial Internet of Things 
 
IFRS                       International Financial Reporting Standards 
 
IP                            intellectual property 
 
M2M                        machine-to-machine 
 
MMC                       multimedia card 
 
OEM                       original equipment manufacturer 
 
R&D                       research and development 
 
RF                           radio frequency 
 
SATA                      serial ATA interface 
 
SD                          secure digital 
 
SDR                       software defined radio 
 
USB                        universal serial bus 
 
VoIP                        Voice-over Internet Protocol 
 
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