CSR Boosts Q1 Revenue

CSR reports revenues of $160.1M, up from $134.9M in 1Q06

May 2, 2007

2 Min Read

CAMBRIDGE, U.K. -- CSR plc [LSE: CSR], the wireless solutions provider and the leader in Bluetooth technology, today announces its unaudited financial results for the quarter ended 30 March 2007.

Financial Highlights

  • Revenue: $160.1m (Q1 2006: $134.9m)

  • Gross margin: 45.1% (Q1 2006: 47.3%)

  • R&D expenditure (excluding amortisation of acquired intangible assets): $33.2m (Q1 2006: $22.4m)

  • SG&A expenditure (excluding the patent dispute settlement): $18.5m (Q1 2006: $16.5m)

  • Underlying operating profit*: $20.4m (Q1 2006: $24.8m)

  • Underlying operating margin*: 12.8% (Q1 2006: 18.4%)

  • Underlying diluted earnings per share*: $0.11 (Q1 2006: $0.14)

  • Operating profit: $3.9m (Q1 2006: $24.3m)

  • Profit before tax: $4.6m (Q1 2006: $25.8m)

  • Diluted earnings per share: $0.02 (Q1 2006: $0.14)

  • Net cash inflow from operating activities: $57.7m (Q1 2006: outflow $9.0m)



Note*: Excluding the $15.0m patent dispute settlement and $1.5m amortisation of acquired intangible assets

First Quarter 2007 Operational Highlights

  • Design win momentum strong across all applications

  • Important Nokia and Samsung handset design wins in both GSM and CDMA

  • BlueCore5 MM and BlueVox QFN (low cost headset) now in volume production

  • GPS technology acquisitions: product offering well received by customers



Outlook

CSR has had a good start to the year with first quarter seasonality being less pronounced than in prior years.

Strong customer demand, supported by bookings, gives us the expectation of $195 million to $220 million of revenue in Q2 2007. With expectations of growing mobile phone attach rates and continued Bluetooth growth beyond the mobile phone market, CSR remains on track to meet its expectations for the full year.

Commenting on the results, John Scarisbrick, CEO said:

"CSR has made a good start to the year as we retain and build upon our position as the unequivocal Bluetooth market leader. Net operating cash flow remains very strong, inventory has returned to normal levels and we have increased our rate of investment in research and development to ensure we continue to capitalise on the growing market for wireless applications.

The outlook for 2007 remains positive. We expect mobile handset attach rates to grow to 40% – 50% this year. The market beyond the mobile phone, which now accounts for over 50% of our revenues, will continue to grow. This, together with our first quarter results and forward bookings to date, places CSR on track to meet its expectations for the full year".

CSR plc (London: CSR)

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