Losses widen at CSR

Wireless technology and computer chip company CSR said first quarter pre-tax losses widened to $16.5m from $2.9m previously.

IFRS operating loss increased to $15.8m for the 13 weeks to 30 March 2012 from a loss of $3.3m a year earlier due to $14.5m litigation income recorded in the first quarter of 2011.

CSR posted first quarter revenue of $227m compared to $163.9m the same time last year following a $73.2m contribution from Zoran.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Its merger with Zoran Corporation, which makes imaging and digital technology for digital cameras, home entertainment and printer products, was completed August 2011.

CSR, whose customers include Nokia and RIM, said first quarter revenue growth year-on-year at its Automotive business line increased 37%, its Home Business Group rose 35%, while Personal Navigation Devices fell 53% and Handsets declined 15%.

Looking ahead the micro-chip firm said it expects second quarter revenues to be in the range of $245m to $265m.

"We believe we are on track to deliver market consensus revenue estimates for the full year," CSR said.

Chief executive officer Joep van Beurden commented, "We have had a good quarter with revenue ahead of management guidance driven by strength in our long-term growth engines of voice & music, automotive and location platforms. We have maintained momentum in our transition to providing higher-margin platforms to multiple markets, which is reflected in our underlying gross margins."

CJ