CSR lifts revenue as profit drags

Wireless technology and computer chip company CSR reported an increase in fourth quarter revenue, towards the top end of management expectations, following good momentum across its markets.

The Cambridge based firm said revenue rose to $244m for the final quarter to 30 December 2011 from $184.8m the previous year. However operating profit for the period fell to $0.6m from $8.1m before, which includes $41.1m of acquisition related charges.

Chief executive officer Joep van Beurden said, "We continue to see good momentum in our transition to being a provider of higher-margin platforms to multiple end markets, which now include cameras and document imaging, and this is reflected in our improving underlying gross margin."

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CSR said it ended 2011 with a strong balance sheet and $278m in treasury deposits, cash and cash equivalents. Underlining its confidence in future trading the board is recommending an increased final dividend of $0.071 and announced a share buy-back of up to $50m.

Looking ahead in 2012 CSR said is investing in five specific medium to longer-term areas of opportunity in Voice & Music, Location (including deep indoors), Automotive, the proliferation of Bluetooth low energy, now named Bluetooth SMART, and next-generation image capture; as it expands into areas such as security and automotive.

The group expects first quarter revenues to be in the range of $205m to $225m.

CSR said it is on track with its 40nm CSR9800 Wi-Fi/Bluetooth chip.