2nd UPDATE: CSR Expects 2Q Revenue Growth As Destocking Eases
06 Maggio 2009 - 12:11PM
Dow Jones News
U.K. bluetooth microchip maker CSR PLC (CSR.LN) Wednesday became
the latest company to suggest the semiconductor segment may have
reached a bottom, as it forecast significant revenue and
market-share growth in the second quarter.
"We believe that supply chain de-stocking should predominantly
cease in the headset segment in the course of the second quarter.
Coupled with the normal seasonality, we therefore expect a marked
uplift in revenues for the second quarter," the company said in its
outlook statement.
CSR said it expects second quarter revenue to rise to between
$95 million and $115 million and that it expects to "significantly
increase" its market share in the second half of 2009.
Revenue for the first quarter was $80.6 million compared with
$160.9 million last year. This beat a Dow Jones consensus of four
analysts which forecast revenue at $77.1 million. The drop in
revenue was the result of market share loss at Nokia Corp. (NOK),
the world's biggest handset maker, weak headset demand overall, and
destocking for most business units.
In April, Nokia, one of CSR's key clients, said first quarter
net profit fell 90% as a result of slumping demand.
In addition to Nokia CSR supplies chips to customers including
Apple Inc. (AAPL), Dell Inc. (DELL), Panasonic Corp. (6752.TO) and
Samsung Group.
The consumer electronics segment has been hard hit by the rapid
decline in demand caused by the economic slump. Global mobile
handset sales are set to decline by 10% this year, according to
Nokia.
Still, CSR's more positive outlook for the second quarter
mirrors similar signs elsewhere, after European semiconductor chip
makers including Infineon Technologies AG (IFX.XE) and
STMicroelectronics NV (STM) last week said that the industry may
have reached a bottom.
Apple also last month reported an unexpected rise in net income
for its second fiscal quarter as sales of the company's iPod and
iPhone products came in ahead of expectations, while Intel Corp.
(INTC), the world's largest chip maker, said sales of personal
computers had bottomed during the first quarter.
CSR Wednesday, meanwhile, reported a net loss of $11.28 million
compared with a $41.9 million loss last year.
Underlying operating expenses fell 12.1% to $52.1 million "as a
result of continued tight cost control."
CSR's results were ahead of consensus, Panmure Gordon said in an
investor note.
"The company continues to make significant operational progress
across its product range and should gain market share this year,"
it said.
At 0936 GMT, however, shares were down 0.8%, or 2 pence lower,
at 283 pence in a higher overall London market, having been up in
early trade.
The company said its proposed merger with California-based GPS
chip manufacturer Sirf Technology Holdings Inc.(SIRF) was on
schedule to complete in June.
Company Web site: www.csr.com
-By Erica Herrero-Martinez, Dow Jones Newswires; 44 20 7842
9353; erica.herrero-martinez@dowjones.com