Wolfson eyes lower sales as losses continue

Audio chip designer Wolfson Microelectronics has posted a loss for the third quarter after suffering a 17 per cent drop in revenues.

The Edinburgh-based firm also warned that sales were likely to remain weak as its customers in the smartphone and mobile computing arenas cancel or delay product launches.

Wolfson, which counts the likes of Samsung among its customers, reported an operating loss of $3 million (£1.9m) for the three months to 29 September, deeper than its second-quarter loss of $2.5m and in stark contrast to the $1.6m profit it posted for the same period a year ago.

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Revenues fell to $43.9m, from $53m a year earlier, and the group said sales for the fourth quarter could be towards the lower half of its previously forecast range of $40m to $50m.

Chief executive Mike Hickey said: “The third quarter was in line with expectations with a slowing of sales, after a strong start to the year, due to high customer inventories.

“Customer product sell-through issues, product cancellations and slippage of some programmes into 2014 means sales are likely to remain weak until boosted by customer new product introductions during the first half of 2014.”