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Second quarter and first half results to 5 July 2009
Tuesday, July 28, 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 second quarter and half year ended 5 July 2009.
Q209 sales grow over 30% sequentially, cash balance grows to over $100m
Key financials for the second quarter 2009:
- Revenue growth of 32% over Q1 2009
- Revenue $33.2m (Q2 2008: $53.9m)
- Gross margin of 50.5% (Q2 2008: 51.7%)
- Adjusted operating loss* of $1.2m (Q2 2008: $6.7m profit)
- Operating loss of $2.4m (Q2 2008: $5.5m profit)
- Operating cash inflow of $4.9m (Q2 2008: $4.5m)
- Adjusted diluted loss per share* of 0.6 cents (Q2 2008: 4.4 cents earnings)
- Diluted loss per share of 1.3 cents (Q2 2008: 3.7 cents earnings)
Key financials for the first half 2009:
- Revenue $58.4m (H1 2008: $100.3m)
- Gross margin of 50.4% (H1 2008: 51.8%)
- Adjusted operating loss* of $5.1m (H1 2008: $10.4m profit)
- Operating loss of $7.7m (H1 2008: $7.9m profit)
- Operating cash inflow of $10.9m (H1 2008: $0.4m outflow)
- Adjusted diluted loss per share* of 2.7 cents (H1 2008: 7.0 cents earnings)
- Diluted loss per share of cents of 4.3 cents (H1 2008: 5.5 cents earnings)
- Net cash balance at 5 July 2009 of $100.7m (29 June 2008: $84.8m), with no debt
Operating highlights:
- Good progress on Wolfson AudioPlus™ solutions
- Nokia selection of Wolfson's unique noise cancelling technology
- First revenues from our silicon microphone product line
- New family of stand-alone power management solutions launched
- Major product portfolio refresh with new products announced across all product lines
- Delivering on 2009 plan
- More new products delivered to market in first half of 2009 than in all of 2008
- Cash position further strengthened, up $8.5m over end 2008 to $100.7m
- Cash breakeven maintained at annual revenue levels of $125m to $130m
- Gross margin maintained above 50%
Outlook
- End consumer demand visibility continues to be poor and order patterns volatile
- Q3 2009 backlog currently $26m, up 6% on equivalent point in last quarter
- Q3 2009 gross margin expected to remain around 50%
- Continuing focus on product development execution while closely managing costs
Commenting on the results Mike Hickey, Chief Executive Officer of Wolfson, said: "We continue to execute well against our plan for 2009 of accelerated new product development and cash conservation. We brought more new products to market in the first half of 2009 than we did in all of 2008, whilst at the same time increasing our cash balance. We have significantly enhanced our portfolio with new platforms being sampled in all our product lines. We are delighted to report first revenues from our silicon microphone products and the selection of our unique noise cancelling technology by Nokia for their latest stereo headset. This is an encouraging affirmation of our technology and our focus on delivering new and innovative products to our customers.
Although our first half results overall reflect the ongoing challenging macroeconomic conditions, the second quarter saw a return to cash break-even as Q209 revenue grew by more than 30% sequentially, and our cash balance grew to over $100m. Whilst end market demand visibility remains poor and ordering patterns "choppy" we have refreshed our product portfolio with exciting new products which are gaining significant market traction, with more to come in the second half. With an innovative and strengthening product portfolio together with continuing tight cost control and an increasingly strong balance sheet, we remain well placed to return to sustainable profitability and growth when the market recovers."
*Adjusted means after adding back amortisation of acquired intangible assets. For earnings or loss per share purposes, this is calculated by adding back to net profit or net loss such cost net of the estimated tax impact and dividing by the number of dilutive shares in issue
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 presentation to investors and analysts at 0830 BST at The London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS.
An audio webcast of the presentation can be heard LIVE from 0830 BST via www.wolfsonmicro.com/investor or www.streetevents.com
Additionally, there is a dial-in facility: UK Dial-in +44 (0) 20 3023 4494; US Dial-in +1 866 966 5335. Replay of the conference call will be available from 0930 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.
Full Press Release
Presentation
CONTACTS FOR PRESS RELEASE SUPPORT MATERIALS
CORPORATE
Allan Hughes
VP Product & Solutions 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
