Business and Trading Update

Monday, October 05, 2009

Wolfson provides the following business and trading update ahead of its third quarter results to be announced on Wednesday, 28 October 2009.

Revenue for Q3 2009 is expected to be around $35m, consistent with the level implied by the backlog reported at the time of the half-year results on 28th July 2009. Gross margin is expected to be around 51%. The Company has maintained its tight control of costs and cash management.

Traditionally, backlog for the fourth quarter builds at an earlier stage than for the other calendar quarters. However, backlog for Q4 2009 is currently in line with that of both Q2 2009 and Q3 2009 at the equivalent points in time. Second half revenue forecast and backlog have been adversely affected by a faster than anticipated shift in product mix at a major customer following a previously announced design loss. Overall visibility of end customer demand remains poor, with very short lead times and volatile ordering patterns.

Wolfson continues to bring new products to market at a run rate double that in 2008. The customer traction gained from these new products is very encouraging, evidenced by a recent audio hub design win with a new Tier 1 mobile phone customer for a US CDMA handset. There have been additional significant design wins across multiple customers and markets and no further design losses. The Company is increasingly confident of a strong revenue ramp as 2010 progresses as a result of these new products and design wins.

An up-to-date Q4 backlog will be provided on the day of the Q3 2009 results announcement.

Enquiries:
Wolfson Microelectronics
Mark Cubitt, Finance Director T:0131 272 7000
Corfin Communications
Harry Chathli, Neil Thapar T:020 7977 0020

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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