CSR's first quarter profits rise on sales of wireless devices

Consumer electronics company CSR saw profits soar in the first quarter bolstered by strong sales of wireless products in its auto, and voice and music divisions.

Underlying profit for the 13 weeks to March 29th came to $12.6m, up from $1.6m the previous year as underlying revenues rose to $237.9m from $227m. Core revenues grew 24% year-on-year to $171.8m.

Gross margin was 0.9 percentage points higher than last year at 51.5%.

Results were boosted by the introduction of a new Bluetooth music streaming device for wireless portable music speakers to the voice and music business. Sales of connectivity products in the auto division also edged revenues higher.

"We expect both these trends to continue," said Chief Executive, Joep van Beurden.

"We also saw strong revenues in mono audio in China, driven by the enforcement of hands-free driving legislation. We expect the benefits of this to come to an end in the second quarter."

The company has entered into a non-discretionary programme to purchase ordinary shares up to an aggregate value of $50m. The share buyback is expected to result in an increase in earnings per share.

CSR forecasts second quarter revenues to be in the range of $245m to $265m.

Shares surged 4.64% to 541p at 10:50 Wednesday.

RD