CSR has announced a fall in first-quarter profit, but the Bluetooth chip market-leader said demand for its chips continues to move beyond its traditional home in mobile handsets.
CSR said first-quarter seasonality was less pronounced than in recent years, and it said it expects second-quarter revenue to be between $195m and $220m thanks to strong customer demand and bookings. This compares to the first quarter ended March 30, where the Cambridge, UK-based company posted a net profit of $3.3m, down from a profit of $18.8m a year ago. Sales however rose to $160.1m from $134.9m in the year-ago quarter, beating market forecasts.
CSR made a good start to the year as we retain and build upon our position as the unequivocal Bluetooth market leader, said CEO John Scarisbrick. Net operating cash flow remains very strong, inventory has returned to normal levels, and we have increased our rate of investment in R&D to ensure we continue to capitalize on the growing market for wireless applications.
CSR said the Bluetooth market grew to half a billion units from about 320 million units in 2005, with Bluetooth now being increasingly incorporated in applications beyond the traditional mobile cellular segment including PCs, gaming, music, and automotive.
CSR said it won important design wins from Nokia and Samsung in both GSM and CDMA during the first quarter. It also said its low-cost Bluetooth headsets are now in volume production, and the product offering from its GPS technology acquisition has been well received by customers. CSR acquired NordNav Technologies and Cambridge Positioning Systems in January.
Last month, CSR reached agreement with the Washington Research Foundation to settle a patent lawsuit over its Bluetooth chipsets. This included a $15m patent settlement charge.
Looking forward, CSR said it remains on track to meet expectations, thanks to Bluetooth’s move beyond mobile phones to music players, games, and automotive systems.
Despite inventory concerns easing and the company raising its second-quarter guidance, its shares fell 3.58% to 741.5 pence ($14.76) on the London Stock Exchange.