Cambridge wireless company CSR saw almost 11 per cent added to its share price on early UK trading despite dipping into loss for the fourth quarter to December 30.

CSR is targeting voice & music, location (including deep indoors), automotive, the proliferation of Bluetooth low energy, now named Bluetooth SMART, and next-generation image capture as it expands into areas such as security and automotive.

CSR reported good momentum in its platform strategy, improved underlying gross margins and cost savings on track. It increased the full-year dividend and announced a $50m (£31.53m) share buy-back.

Q4 revenues were up substantially to $244m (£153.9m) compared to $184.8m (£116.5m) in Q4 2010 and were towards the top end of management guidance. CSR saw revenue growth in automotive (15 per cent) and its home business group (33 per cent) with declines in personal navigation devices (56 per cent) and handsets (11 per cent).

The Q4 operating loss of $50.6m (£31.9m) compared to $58.1m (£36.6m) in Q4 2010 and included $41.1m (£25.9m) of acquisition-related charges. The company ended the year with cash, equivalents and treasury deposits of $277.8m (£175.2m) after paying net cash of $93.3m (£58.8m) for Zoran and $47.5m (£29.9m) for share buy-backs.

CSR said that $130m (£82m) of annualised savings were on track to be completed by end of the second quarter of 2012.

CEO Joep van Beurden said: “We continue to see good momentum in our transition to being a provider of higher-margin platforms to multiple end markets, which now include cameras and document imaging, and this is reflected in our improving underlying gross margin.

“During 2011, we largely completed our integration of Zoran and following our December announcement on discontinuing investment in digital televisions systems-on-a-chip (SoC) and silicon tuners, we are fully on track to deliver $130m of annualised savings by the end of the second quarter this year.

“We have ended 2011 with a strong balance sheet and $278m in treasury deposits, cash and cash equivalents. Given the strength of our financial position, our confidence in our future prospects and our focus on delivering returns to shareholders, the board is recommending an increased final dividend. In addition, we are announcing a share buy-back of up to $50m.

“In 2012, we will continue our disciplined approach to capital allocation and investment in higher margin platforms. We are investing in five specific medium to longer-term areas of opportunity in Voice & Music, Location (including deep indoors), Automotive, the proliferation of Bluetooth low energy, now named Bluetooth SMART, and next-generation image capture; as it expands into areas such as security and automotive. We are on track with our with 40nm CSR9800 Wi-Fi/Bluetooth chip.”

CSR expects first quarter revenues to be in the range of $205m (£129.3m) to $225m (£141.2m).