Bluetooth chip designer CSR Plc has reported third-quarter earnings and warned that its phenomenal growth record is about to come to an abrupt end. It said fourth-quarter revenue will be in the range of $160m to $180m. In the same period last year it achieved $162m.
The Cambridge, UK-based company began the year by doubling revenue, and set an impossibly high standard. So the third-quarter figures look modest withnet income up 17% at $37.58m on revenue that rose 31.8% to $214.12m.
CSR dominates the Bluetooth chip market and claims that during the quarter it won 83% of all design wins in the consumer segment. It said its current problems are a result of a product mix shift in the mobile phone market toward lower end handsets that do not yet contain Bluetooth.
CEO John Scarisbrick said that while it was disappointing that the second half was not as strong as anticipated, the board is confident that further significant growth will be achieved in 2007.
CSR is now shipping its fifth generation headset chip that offers a Bluetooth radio with a DSP to support both CSR and third-party sound enhancement algorithms. It said an increasing number of third parties are implementing software that can be embedded into eXpansion, its open standard for Bluetooth headset software.
Crucial to CSR’s future is extending its product range. It said design activity for UniFi, which it claims is the first single chip 802.11a/b/g embedded design, continues to be strong.
For the VoIP market, it has launched the UniVox reference design, which it said allows for a voice-over-WiFi cordless phone to be produced for a total bill of materials of less than $20.
CSR said it expects the first UniFi silicon to be delivered to customers this year but said revenue is expected to be modest and will become more significant in 2007.