Press Releases

Fourth Quarter and Full Year Results to 2 January 2011

Date:
Tuesday, February 08, 2011

Strong Growth momentum achieved in 2010  

Wolfson Microelectronics plc (“Wolfson” or “the Company”), a leading supplier of mixed-signal semiconductors for consumer electronic products, announces fourth quarter and audited full year results for 2010. 

Full year financial summary: 

  • Revenue up 30% to $157.3m (2009: $121.3m)
  • Gross margin of 49.5% (2009: 50.7%)
  • Underlying* operating loss reduced to $1.5m (2009: $7.7m loss)
  • Operating loss reduced to $11.3m (2009: $15.3m loss before exceptional charge)
  • Underlying* diluted earnings per share of 0.4 cents (2009: 3.8 cents loss)
  • Diluted loss per share of 5.7 cents (2009: 8.9 cents loss)
  • Net cash inflow from operating activities of $6.9m (2009: $11.8m)
  • Cash and short-term deposits at 2 Jan 2011 of $97.1m (3 Jan 2010: $97.8m) and no debt 

Fourth quarter financial summary: 

  • Revenue up 67% to $45.8m (Q4 2009: $27.5m)
  • Gross margin of 47.0% (Q4 2009: 50.9%)
  • Underlying* operating profit increased to $1.3m (Q4 2009: $4.3m loss)
  • Operating loss reduced to $1.0m (Q4 2009: $5.9m loss) 

Full year operational summary: 

  • Promised increase in revenues and return to underlying profitability delivered
  • Strong revenue growth in mobile phones up 52%, smartphones up 76%, gaming up 130% and eBooks up nearly 400%
  • Power management revenues grew by 163%
  • Launched 30 new products
  • Record design-in performance up 40%
    • Wolfson’s Audio Hub architecture gaining wide acceptance
    • Most of the design-ins are in the fastest growing consumer electronics product segments with Tier 1 manufacturers
    • The estimated value, as well as the number, of design-ins has increased
    • The majority of the design-ins will start to ramp to volume manufacturing during 2011 

2011 key developments to date: 

  • Introduction of the WM0010, a fully programmable audio DSP with a suite of sound enhancement software, primarily targeting smartphone and tablet PC markets
  • Introduction of the WM2200, the world’s first ambient and transmit  noise cancellation solution in a single package, primarily targeting the mobile phone market
  • Introduction of the WM229, Wolfson’s first digital ambient noise cancellation stereo headset
  • Wolfson’s WM8325 power management integrated circuit selected as a partner for the NVIDIA TegraTM 2 dual core CPU reference solution, primarily targeting smartphone and tablet PC markets. 

Outlook: 

  • Q1 2011 revenue expected to be in the range of $38m to $44m
  • Q1 2011 gross margin is expected to be around 47% and, as adverse mix and a temporary supplier yield issue normalise through 2011, recover to around 50% on a full year basis
  • Excellent 2010 design-in performance is expected to drive strong revenue growth in 2011 

Commenting on the results, Mike Hickey, CEO of Wolfson Microelectronics, said: 

“We achieved strong growth momentum in 2010, delivering the second-half step-up in revenue and return to underlying profitability that we promised. We further strengthened our product portfolio, and our Audio Hub architecture is being adopted in the most exciting and fastest-growing consumer electronics products such as smartphones, tablet PCs, eBook readers and the latest gaming devices. These developments, together with another record breaking year of design-ins, give us confidence that we can achieve further strong revenue growth in 2011 and beyond.”

Enquiries:

Wolfson Microelectronics
Mike Hickey, CEO
Mark Cubitt, CFO
T: 0131 272 7000

Corfin Public Relations
Harry Chathli
Neil Thapar
T: 020 7596 2860

Mike Hickey, CEO, and Mark Cubitt, CFO, will be hosting a presentation to investors and analysts at 09.30 GMT at JP Morgan Cazenove, 20 Moorgate, London, EC2R 6DA.  An audio webcast of the Wolfson Microelectronics plc Full Year Results and presentation can be heard LIVE from 09.30 GMT via http://www.wolfsonmicro.com/investor

Additionally, there is a dial in facility: UK Dial-in +44 (0) 20 3140 0785; US Dial-in +1 718 705 7514. Replay of conference call available from 10.30 GMT on: +44 (0) 20 3140 0698 or +1 877 846 3918 Access Pin 375635# 

*Underlying results exclude: charges for the amortisation of acquired intangible assets (2010: $5.3m; 2009: $5.0m) and share-based compensation charges, including associated payroll taxes (2010: $4.5m; 2009: $2.6m). Also, in 2009 an exceptional charge of $0.5m is excluded. The term "underlying" is not defined in IFRS and therefore may not be comparable with similarly titled measures reported by other companies.  Underlying measures are not intended as a substitute for, or a superior measure to, IFRS measures. 

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Press Contacts

Technology PR

Chris King
EML Wildfire
wolfson@emlwildfire.com
+44 (0) 208 408 8000

Company Contacts

Derek Milne
Communications Director
Wolfson Microelectronics plc
derek.milne@wolfsonmicro.com
+44 (0) 131 272 7000

Laura Moore
PR Manager
Wolfson Microelectronics
laura.moore@wolfsonmicro.com
+44 (0)131 272 7137