Integrated circuit designer Wolfson Microelectronics Plc has revealed that the continued success of portable devices such as Apple Computer Inc’s iPod and Sony Corp’s PlayStation Portable means its profits and revenues are going to be higher than expected.
In response to the announcement, shares in the company rose 9.3% to 236.25p ($4.17) on the London Stock Exchange.
Since its interim results in July, the Edinburgh, Scotland-based company said the trend for portable consumer devices had accelerated into the second half of the year. Wolfson now expects to report second-half revenue of more than 51m pounds ($90m), compared to the current market consensus of around 44.7m pounds ($79m). It said the higher revenue will also result in operating profit ahead of previous expectations.
We entered the second half of the year with a record order backlog which has translated into good revenue growth in the third quarter, said CEO David Milne. The backlog has continued to increase with stronger demand for our products from a range of customers giving a strong finish to 2005.
Wolfson has designed over 200 chips that change digital signals to analog ones so people can hear sounds or see images, making them a key part of digital music players, mobile phones, DVD players, and digital cameras. The chips are made by foundries in Asia, and customers include Samsung Electronics Co Ltd, Sony Corp, and satellite navigation maker TomTom NV.
Last October the chipmaker raised 70m pounds ($117.4m) in an IPO, and also doubled revenue for the second year in a row after it posted sales up 125% to $75.7m, on profit of $9.2m.