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Results for the quarter ended 5th April 2009

Wednesday, April 29, 2009

Wolfson Microelectronics plc (“Wolfson” or “the Company”), a leading supplier of mixed-signal semiconductors for consumer electronic products, announces its financial results for the first quarter ended 5 April 2009. 

Key financials for the first quarter 2009:  

  • Revenue down 46% to $25.2m (Q1 2008: $46.4m)
  • Gross margin in line with guidance at 50.2% (Q1 2008: 52.0%) (Q4 2008: 49.5%)
  • Operating loss of $5.2m (Q1 2008: $2.4m profit)
  • Adjusted operating loss* of $3.9m (Q1 2008: $3.7m profit)
  • Diluted loss per share of 2.94 cents (Q1 2008: 1.86 cents earnings)
  • Adjusted fully diluted loss per share** of 2.16 cents (Q1 2008: 2.62 cents earnings)
  • Reduction in working capital of $7.3m (Q1 2008: $10m increase)
  • Net cash inflow from operating activities of $6.0m (Q1 2008: $4.8m outflow)
  • Cash increased to $97.8m at 5 April 2009 from $92.2m at 28 December 2008, with no debt 

First quarter operational highlights: 

  • Mobile handset revenue up 25% to $11.9m (Q1 2008: $9.5m), accounting for 47% of total
    revenue
  • Revenue from flat panel TV up 56% to $2.8m (Q1 2008: $1.8m), representing the second largest application segment in the quarter at 11% of revenue
  • New product development on track against milestones
  • Design win momentum maintained across multiple market segments 

Outlook 

  •  Market visibility continues to be poor
  • Q2 2009 backlog currently $25m, of which $10.9m has already been shipped and invoiced
  • Q2 2009 gross margin expected to remain around 50%
  • Continuing focus on product development execution while closely managing costs and cash 

*Adjusted operating loss/profit excludes the impact of acquired intangible asset amortisation
** Adjusted fully diluted loss/earnings per share represents the loss/profit after tax, adding back amortisation of acquired intangible assets net of the estimated tax impact of such cost, divided by the number of diluted shares in issue. 

Commenting on the results Mike Hickey, Chief Executive Officer, said: “As anticipated, trading in the first quarter of 2009 was very challenging when compared to the same period last year, as our customers in the consumer electronics industry continue to be affected by the difficult economic environment. 

While disappointing, the fall in revenue in the first three months of this year was in line with our expectations and our management of operating cost mitigated the resultant loss in the period, ensuring further good cash generation. 

More positively, we have continued our strong growth in the multimedia and smartphone market and are on track with the execution of our 2009 plan, bringing a record number of new products in development to the initial sampling stage. With our backlog up 25% on same time last quarter, new products progressing to plan, continuing tight cost control, healthy cash generation and a strong financial position, we remain well placed to return to sustainable profitability and growth when the market recovers.” 

Enquiries:
Wolfson Microelectronics
Mike Hickey, Chief Executive
Mark Cubitt, Finance Director
T: 0131 272 7000 

Corfin Communications
Harry Chathli, Neil Thapar 
T: 020 7977 0020 

Mike Hickey, CEO and Mark Cubitt, Finance Director, will be hosting a conference call for investors and analysts at 1100 BST. UK Dial-in +44 (0)20 3023 4494; US Dial-in +1 866 966 5335. The conference call can also be heard LIVE from 1100 BST via http://www.wolfsonmicro.com/investor or www.streetevents.com Replay of conference call available from 1200 BST: on +44 (0)20 8196 1998 or +1 866 583 1035 Access Pin 606587#.


This document contains certain statements that are not historical facts, including statements about Wolfson’s expectations and beliefs and statements with respect to its business plan, operations and financial performance and condition and other objectives. Such statements are forward-looking statements. These statements typically contain words such as “intends”, “expects” “anticipates”, “estimates”, “aims”, “believes”, “assumes”, “should”, and words of similar import, which are predictions of or indicate future events and future trends. Undue reliance should not be placed on such statements, which are based on Wolfson’s current plans, estimates, projections and assumptions. By their nature, forward-looking statements involve known and unknown risk and uncertainty because they relate to events and depend on circumstances which may occur in the future and which in some cases are beyond Wolfson’s control. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited, to future revenues being lower than expected; increasing competitive pressures within the industry; general economic conditions or conditions affecting the relevant industries, both domestically and internationally, being less favourable than expected.

 
 
CONTACTS FOR PRESS RELEASE SUPPORT MATERIALS
CORPORATE

Allan Hughes
VP Marketing
Wolfson Microelectronics plc
allan.hughes@wolfsonmicro.com
+44 (0) 131 272 7000

US

Al Haun
Precision Communications
al_haun@comcast.net
+1 (508) 876 9400

EUROPE

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

JAPAN

David Huerta
Jspin Communications
david@jspin.co.jp
+81 352 691 038

CHINA

Sunray Liu
Beijing New Synergy Consulting
sunray@1and7.com
+86 10 8811 3067

SOUTH KOREA

Terry Kim
Shout Korea Communications
wolfson@shoutkorea.com
+82 255 89890

TAIWAN

Thomas Chou
Access PR
wolfson@accesspr.com.tw
+ 888 2 8773 4277

ROW

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