CSR optimistic despite 17 per cent loss on share price
Bluetooth chip designer, CSR saw its share price drop by over 17 per cent after announcing a drop in expected fourth quarter revenues. Its shares fell 135p to 645p following the news.The company said it expected to make a lower number of shipments than previously forecast for Q4, making its predicted revenue in the range of £83.8m -£94.3 m, compared to the intial outlook of £54.9m.
In its Q3 results for the period ended 29 September, the company also announced a 32 per cent quarter on quarter increase in revenues, but this progress was overshadowed by the revenue warning.
CSR designs Bluetooth chips, which use radio waves to transmit data between mobile phones, PDAs and laptops.
The Cambridge Science Park based firm, which commands more than 50 per cent of the Bluetooth market, said that the revisions to the previous guidance were caused by increasing demand for lower-end mobile phones in emerging markets in China and India, which do not utilise Bluetooth technology.
The firm also quoted a slowdown in Bluetooth-utilising 3G handset sales and slower speed in the handset upgrade cycle in mature markets as causes for decreased demand.
Chief executive John Scarisbrick was, however, upbeat about the company’s medium and long-term prospects: