It was a mixed signal from mixed-signal semiconductor specialist, Wolfson Microelectronics (LSE: WLF) this morning. On the positive side, second quarter revenues growth rose 31% on Q1 2009, to US$33.2 million. However, this was still way below the comparable period in 2008, when revenues hit $53.9 million. Perhaps more worrying for investors, Gross Margins slipped 1.2% to 50.5% from 51.7% in Q2 2008.
Cash balances did grow to over US$100 million, and Wolfson Electronics has no debt.
First half financial highlights included revenues of US$58.4 million (H1 2008: $100.3m), Gross Margins fell to 50.4% (H1 2008: 51.8%) and the company swung to an operating loss of US$5.1 million (H1 2008: $10.4 million profit). Adjusted diluted loss per share was 2.7 cents (H1 2008: 7 cents earnings).
Operationally, Wolfson reported first revenues from its new product line of silicon microphones and launched its new family of power management solutions. Overall, the group delivered more new products into the market in the first half of 2009 than it did in all of last year.
Looking ahead, the semiconductor company said visibility remains “poor” and order patterns “volatile”. Despite this, the Q3 2009 order back look currently stands at US$26 million, up 6% on the equivalent point in Q2 2009.
“Although our first half results overall reflect the ongoing challenging macroeconomic conditions, the second quarter saw a return to cash break-even as Q209 revenue grew by more than 30% sequentially, and our cash balance grew to over $100m,” Mike Hickey, Chief Executive Officer of Wolfson, said.
“Whilst end market demand visibility remains poor and ordering patterns 'choppy' we have refreshed our product portfolio with exciting new products which are gaining significant market traction, with more to come in the second half. With an innovative and strengthening product portfolio together with continuing tight cost control and an increasingly strong balance sheet, we remain well placed to return to sustainable profitability and growth when the market recovers.”
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