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Issue: 16 - 22 Dec, 2009
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Wolfson makes a loss

Wednesday 28 October 2009 04:01

Wolfson Microelectronics has reported its Q3 figures showing revenues up 6.5% sequentially to $35.4m but down on Q308's revenues of $60.5m, for a gross margin of 51.0% which is about the same as Q308. However the company made a pre-tax loss of $1.5m compared to an $8.3m in 2008. Cash improved to over $100m from $89m at the end of Q308.

"We continue to execute to our 2009 plan of refreshing our product portfolio whilst conserving cash", says CEO Mike Hickley, "operating costs have been managed tightly and our financial position remains healthy. Current trading remains challenging as the full impact of previously announced design losses works through. We are confident of the material positive effect that our new product design wins will have on revenues as we progress through 2010. We continue to introduce a record number of new products and customer response to these products has been very encouraging. This is evidenced by our selection for many new end products by our existing customers and also by several new customers across the applications we serve, including a new Tier 1 mobile phone customer. We have some great parts in some exciting products and are building a solid foundation for an accelerating recovery as these end products are launched through 2010."

Wolfson sees no change to its poor overall visibility of end customer demand, with very short lead times and volatile ordering patterns

The backlog for Q4 09 is currently $22.5m compared to $26m at the equivalent point in Q3 2009. Traditionally Wolfson backlog for the fourth quarter builds at an earlier stage than for the other calendar quarters. Q409 gross margin expected to be around 51%

The company says it is on target to double the number of new products introduced in 2009 over 2008; that no cash burn is expected for the full year; that its latest audio hub products have been selected for another 15 high volume consumer electronics products including multiple Tier 1 mobile phones; that it's had further design-in success with its Ambient Noise Cancellation (ANC) products for handsets, headsets and headphones; that its WM2000 device has been selected for a Tier 1 customer handset and a Tier 2 customer handset; that in headsets and headphones it has secured another two major brand design-ins; that it has made continued progress with Power Management products, including portable media player design wins with Microsoft Zune HD and Samsung M1; and that IREX Technologies has selected itsWM8352 power management device for its new touch-screen eReader, the DR800SG

Also, Wolfson introduced a new family of digital still camera (DSC) products introduced which is 'gaining traction' and it continues to build momentum for silicon microphones with major customer design-ins, with delivery of quarter on quarter revenue growth

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