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28 February, 2006 - 11:16 By Staff Reporter

Revenues soar as share price falls for CSR

Record revenues, profits, cash flow and earnings couldn’t prevent the share price for wireless innovator, CSR plc, slipping almost 10 per cent as it released its results for 2005, the year the firm became Cambridge’s third billion pound company.Record revenues, profits, cash flow and earnings couldn’t prevent the share price for wireless innovator, CSR plc, slipping almost 10 per cent as it released its results for 2005, the year the firm became Cambridge’s third billion pound company.

Despite securing over 460 new Bluetooth designs, 43 per cent in handsets or headsets (2004: 346 and 31 per cent), and having shipped over 150 million Bluetooth units, CSR’s share price fell 103 pence to 942 a share, down 9.86 per cent.

Revenues for the 12 months ended 30 December 2005 were up 92 per cent to £279.5m (2004: £145.4m) and pre-tax profit up 94 per cent to £65.7m (2004: £33.9m). However, CSR also became chargeable to tax for the first time at an effective rate of 27.3 per cent (2004: tax credit of 4.4 per cent).

Spending on research and development was at £34.6m, representing 12.4 per cent of revenue compared to 10.9 per cent (£15.9m) of revenue in 2004.

CSR’s retiring chief executive, John Hodgson, said: “These are very strong results with revenues and profit almost doubling, operating margin held virtually stable and record sales in the fourth quarter.

“They reflect the growth of the Bluetooth market, which we estimate has more than doubled in unit terms during the year, the strength of CSR’s position within this market and our success in driving down the cost of our Bluetooth solutions, whilst simultaneously increasing their functionality and reducing their size and power consumption.

“Looking ahead, we see the Bluetooth market continuing to expand. The ‘attach rate’ in mobile phones is increasing both as the demand for ‘hands free calling’ grows and as mobile phones increasingly move into services such as music streaming and gaming. Bluetooth is also being adopted in the wider electronic goods markets and in new application sectors such as automotive and consumer.

“The combination of a fast growing Bluetooth market, our continued leadership in design wins and our knowledge of our customers' development programmes, make us confident for the outlook for 2006 as a whole.”

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