Wolfson Microelectronics saw a 46% fall in first quarter sales revenues as it slipped into an operating loss of $5.2m
The Edinburgh-based chip company has been badly hit by falling demand for its ICs in the consumer market.
Wolfson is widening its customer base and changing its focus away from the more volatile consumer markets such as MP3 players.
On the upside, sales to mobile handset makers were up 25% to $11.9m and now account for 47% of total revenue.
Revenues from the flat panel TV market was also up 56% to $2.8m.
“As anticipated, trading in the first quarter of 2009 was very challenging when compared to the same period last year, as our customers in the consumer electronics industry continue to be affected by the difficult economic environment,” said Mike Hickey, Wolfson CEO.
“More positively, we have continued our strong growth in the multimedia and smartphone market and are on track with the execution of our 2009 plan, bringing a record number of new products in development to the initial sampling stage,” said Hickey.
“We remain well placed to return to sustainable profitability and growth when the market recovers,” said Hickey.