Wolfson announces first half loss
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Edinburgh based Wolfson Microelectronics, has announced a pre-tax loss of £1.3million for the six months to July. This compares with a pre-tax profit of £3.7mn for the same period last year.
The mixed signal semiconductor specialist's microchips are used primarily for consumer products such as the Apple iPhone and Microsoft Xbox. Second quarter revenues rose 31% for Q1, although this was still down from the same period a year earlier. Gross margins fell from 51.7% in Q2 2008 to 50.5% in 2009.
In a statement Wolfson warned "End consumer demand visibility continues to be poor and order patterns volatile."
Mike Hickey, Wolfson's chief executive, added: "Although our first half results overall reflect the ongoing challenging macroeconomic conditions, the second quarter saw a return to cash break even as Q2 '09 revenue grew by more than 30% sequentially, and our cash balance grew to over $100m. Whilst end market demand visibility remains poor and ordering patterns 'choppy', we have refreshed our product portfolio with exciting new products which are gaining significant market traction, with more to come in the second half. With an innovative and strengthening product portfolio together with continuing tight cost control and an increasingly strong balance sheet, we remain well placed to return to sustainable profitability and growth when the market recovers."
