Wolfson Microelectronics, a supplier of mixed-signal semiconductors for consumer electronic products, said its remains in a loss but expects to return to profitability in the second half.
Underlying operating loss at the computer chip designer during the second quarter reduced to $1.3m from a loss of $2.9m a year earlier. Revenue in the second quarter grew by a third following robust demand for smartphones and tablet computers.
Sales in mobile phones grew 30% year-on-year, driven in particular by smartphones, Wolfson explained.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Commenting on the results, CEO Mike Hickey said: "Despite consumer market headwinds persisting, our first half results are in line with previous guidance and we have achieved considerable revenue momentum."
"Our Audio Hubs and MEMS microphones continue to be adopted at record levels by brand-leading companies, particularly in smartphones and tablet computers. Consumer demand for great audio in smart devices is driving this product adoption success."
Looking ahead to the third quarter, revenues are expected to be in the range of $46m to $54m, depending on customer new product ramps, it said. The group still expects to return to underlying profitability in the second half of 2012.
"Customer new product launches, mainly smartphones with Wolfson devices inside, enabled strong sequential revenue growth in the second quarter. This momentum, coupled with further customer new product launches expected this year, positions the company well to achieve a further step up in revenue and an anticipated return to underlying profitability in the second half of 2012," the group said.
As previously announced, Wolfson continues to expect five new smartphone customers to add incremental revenue during full year 2012.
Despite the continued challenges of the macro-economic environment, Wolfson said it remains comfortable with consensus for full year 2012.
CJ
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
