CSR cautious about second-half trading

Wireless technology and computer chip group CSR has issued cautious guidance for the second half of 2012 following the 310m-dollar sale of its handset division to Samsung earlier this month.

In the three months to the end of June underlying revenues were $266.5m, compared to $193.9m in the same period of last year and just above the guidance range of $245-265m.

Profits were $17.3m, also up on the second quarter of 2011 when they came in at $16.1m.

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CSR is aiming to build its core business around so called "technology platforms" in the areas of voice & music; indoor location; automotive infotainment; Bluetooth Smart; and imaging.

The idea of flogging off the mobile handset division is that some of the cash can be reinvested in these higher margin areas.

In the second quarter, "platform" revenue accounted for 62% of revenue, up from 45% in 2011, and this resulted in the gross margin rising from 49.8% to 52%.

Joep van Beurden, Chief Executive Officer, said: "We had another good quarter driven by our momentum in providing higher-margin platforms, which is reflected in our revenues and underlying gross margins.

"In line with much of the sector, while we saw strong trading conditions during the first half of the year, order patterns have been more cautious with respect to the second half of 2012."

CSR's guidance for third-quarter revenues is between $260m to $280m, as previously announced.

Just after the open on Tuesday, the shares had risen 1%.

BS