This is an edited version of the full financial results announcement
for Q3 2008, which is available to download at: http://www.csr.com/results
CSR (LSE: CSR) today announced its unaudited financial results for the
third quarter of 2008. Performance for the quarter was in line with
guidance - revenues were $205.5m up 9% over the second quarter. The
company has also achieved gross margins of 44.5%, consistent with
guidance and the prior quarter. However, the difficult economic
environment is having an impact on customer end markets and as such the
company expects to reduce combined R&D, sales, general and
administration expense in 2009 by around $20m from 2008 levels.
CSR expects to maintain or extend its leadership position in the key
markets of handsets, headsets, automotive and consumer electronics and
believes that its strong portfolio of wireless products and technologies
will help CSR achieve this.
CSR’s major Connectivity Centre product,
BlueCore7, is on track. BlueCore7 was launched earlier this year and
integrates classic Bluetooth with Bluetooth low energy, FM transmit and
receive and even CSR’s own eGPS navigation
technology. CSR is confident that BlueCore7 will appeal to key Tier 1
handset manufacturers and will begin shipping in the first half of 2009
as planned.
The development of MusiCore, CSR’s chip that
enables music phones with 100 hours of high quality music playback, plus
Bluetooth functionality, has progressed according to plan. The company
is developing MusiCore to an aggressive schedule and expects that this
product will win design slots with Tier 1 manufacturers during the first
half of 2009.
UniFi, CSR’s market leading embedded Wi-Fi
technology with extremely low power consumption and industry leading
coexistence, has already been designed into more than six handsets, with
additional design wins with Tier 1 manufacturers in the pipeline. CSR’s
next generation Wi-Fi product is on track to sample to customers during
the fourth quarter.
The headset market continues to be strong for CSR, due to the company’s
technological superiority and innovation. CSR estimates its market share
to be around 80%. CSR’s products are
particularly strong in high-end headsets where customers demand the
highest quality product with the greatest range of features for their
devices. CSR wins almost all designs in this segment.
