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 30 March 2008.

First quarter financial highlights:

• Revenue up 15% to $46.4m (Q1 2007: $40.2m) 
• Gross margin of 52.0% (Q1 2007: 52.9%) (Q4 2007: 52.0%)
• Adjusted operating profit* up 13% to $3.7m (Q1 2007: $3.3m)
• Operating profit of $2.4m (Q1 2007: $3.2m)
• Adjusted fully diluted earnings per share** of 2.62 cents  (Q1 2007: 2.65 cents)
• Diluted earnings per share of 1.86 cents (Q1 2007: 2.61 cents)
• Continued focus on management of overheads: $19.6m excluding non-cash charges, representing a decline of 9% on Q4 2007
• Net cash balance at 30 March 2008 of $81.2m

First quarter operational highlights:
Wolfson continues to broaden and balance its customer and application base

• Mobile handset revenue up 10% on Q1 2007, representing 20% of total Group revenue with continued positive momentum from smart phones
• Revenue from non Portable Media Player (PMP) applications up 32% on Q1 2007, accounting for 89% of Group revenue
• Broader balance across top 5 customers – no one customer accounted for more than 11% of total Group revenue
• Excellent revenue growth from digital still cameras, headset, gaming and automotive applications

Continuing positive progress with AudioPlus™ products and technologies

• Launched three new Smart Power products targeted at the portable market, including a second power management solution for mobile handsets, the WM8400
• Ongoing design win success in high-end consumer audio solutions with our Pure Sound flagship product, the WM8741
• Wolfson AudioPlus™ active noise cancellation (ANC) discrete technology product selected by Audio-Technica
• Solid progress on first chip implementing MEMS technology for silicon microphone products
• Won the 2008 Editor’s Choice Award from US magazine, Portable Design, with WM8350 cited as “best audio IC” product of the year

Excellent design win momentum across multiple market segments: number of wins across Tier 1 customers up 65% on Q1 2007

Outlook

• Current order backlog in line with normal seasonal consumer demand trends and management expectations
• Second quarter revenues forecast to be in the range of $51m-$56m, representing growth of 3-13% on Q2 2007, having taken into account lower expectations for PMP and portable navigation devices (PNDs)
• Gross margins expected to remain stable at around 52%

*Adjusted operating profit excludes the impact of acquired intangible asset amortisation
** Adjusted fully diluted earnings per share represents the 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 Dave Shrigley, Chief Executive Officer of Wolfson, said: “We are pleased to have delivered a solid performance in the first quarter of 2008, with revenues in line with our earlier guidance and an operating profit that benefited from our continued focus on overhead management.  In particular, revenue growth from applications other than PMP was strong, up 32% on Q1 2007, highlighting the significant progress made in broadening and balancing our customer base and exposure across application areas.

Trading remains encouraging and we are continuing to achieve strong design win momentum from both existing and new customers.  Wolfson is on course to achieve solid progress this year, through focused execution of our AudioPlus™ strategy, a broadening of our revenue base across customers and applications, and conservative management of the business in the light of challenging industry and economic conditions. As a result, we remain confident of delivering another year of revenue growth.”

Enquiries:

Wolfson Microelectronics
Dave Shrigley, CEO
Mark Cubitt, Finance Director  
Tel: 0131 272 7000

Corfin Communications
Harry Chathli, Neil Thapar 
Tel: 020 7929 8989

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