CSR profits soar on Bluetooth
Bluetooth wireless communications specialists CSR has rung up a 151 per cent growth in third quarter profits and the company has hired more staff to meet demand for its technology.
CSR said pre-tax profits were $45.5m (£25.8m) in the period compared with $18.1m in the same quarter of 2003.
The Cambridge-based firm also announced that John Hodgson, 62, its chief executive, will retire in February. He will be replaced by CSR non-executive director John Scarisbrick, 52, a former head of Texas Instruments and an ARM board member.
The company told the market it expected flat growth in the fourth quarter due to a seasonal slowdown, adding that it was well positioned to meet full year forecasts with revenues for the last three months of the year between $155m (£87.35m) and $165m.
Hodgson said: “We have seen strong demand for Bluetooth solutions in the cellular sector and we remain well positioned to meet full year expectations as we move into the Christmas quarter.”
Bluetooth is the short-range radio link that allows electronic data to be sent wirelessly between gadgets such as computers and mobile phones.
CSR’s share price has climbed by more than 15 per cent in the past fortnight. CSFB said the key issue for CSR remained 2006 revenues, noting that, while design contracts should ensure meaningful growth next year, the shares could suffer from some profit taking due to the seasonal downturn and the news of Hodgson’s departure.
The business has now shipped more than 150m integrated circuits since its inception and won more than 55 contracts in the quarter from companies including LG, Nokia, Motorola, Philips and Siemens. CSR said integration of the recently acquired UbiNetics software business was proceeding to plan.
