Big brands call Wolfson for latest phone chips

Published on Wednesday 5 May 2010 21:09

WOLFSON Microelectronics yesterday hailed a flurry of new contract wins that are expected to boost revenues next year.

The Edinburgh-based company revealed that one of its audio chips had been selected by a "leading brand" – which analysts believe is Microsoft – for use in a new mobile phone running the Windows operating system.

One of Wolfson's chips was also chosen for use in another smartphone, which analysts suggested was being launched by Motorola, Blackberry-maker RIM or SonyEricsson.

Management said the new client could become one of its top customers next year, prompting Cazenove to upgrade its 2011 revenue forecasts by $10 million (6.6m) to $170m.

Wolfson beat first-quarter revenue predictions after last year's new products and contract wins at the Scots microchip maker translated through to sales.

The firm posted a 13 per cent rise in sales to $28.5m, beating consensus forecasts of $25.7m.

Losses before tax widened from $5.8m to $6.9m, but did not extend as far as analysts' predictions of $7.1m, following increased spending on research and development.

Mark Cubitt, Wolfson's chief financial officer, said the firm was still on course to return to profit in the second half of the year, but did not predict a profit figure. Chief executive Mike Hickey said: "Last year we launched 30 products, which totally refreshed our range. We're not going to compete with that figure this year, but already we've launched nine new chips in the first quarter."

Shares in Wolfson – which has about 400 staff, including 300 in Edinburgh – closed down 1.6 per cent or 2.75p at 167p.