Wolfson

I've seen shares fall on good results before but this is just silly!

Surely this has got to be a buying opportunity!

Financial Highlights

Revenue increased by 94% to $56.9m (H1 2003, $29.3m)
Gross margin improved to 50% (H1 2003, 46.4%)
Profit before tax increased by 123% to $9.3m (H1 2003, $4.2m)
Diluted earnings per share increased 94% to 5.77c (H1 2003: 2.98c)

Operational Highlights

158 design wins in the period
9 new products introduced in the period
Continued strong uptake of products by major OEMs
Increased sales in Japan and Korea to 29% of group turnover
31 new technical and commercial staff

seawallwalker,

I sold yesterday, shortest time I've ever held a share.

Good stuff, but what about simonpayton.

He should too..........

Should what???

I sold WLF first this this morning when it dropped to -0.3%, so I am out....

Simon

Chart looking tasty once again. I'm in for the recovery @ 174 p/s. Am I right to say this is below its floating price?

Correct it is.

It is tempting but it keeps slipping below the 170p mark followed by a 10p rise.

Does not seem to know where it should be yet.

It used to be 320p & then it fell for no good reason & I thought it looked like a bargain but it only recovered a little bit & then it fell again for no good reason & keeps on repeating this & looking like a bargain.

BUT I wasn't tempted until the big fall after the good results BUT it fell yet again so I took a small loss & got out & then it fell even further.

If I knew why WLF was so out of favour then I could decide if it was worth a punt again.

Do you know?

Just before the last results ther was a big rise in the price from 250ish to 290 ish, that was as a result of Instituion Buying.

I can not see why they should have bought and then watched their interests disappear by a 1 loss per share.

None of which adds up.

Crazy!

It seems crazy but there has to be a reason even if that reason is misinformation & inncorrect rumour.

I haven't heard anything.

If had then at least I could disagree with it or agree with it.

The only negagtive I rememeber is the demand in China was expected to decrease. This is significant as over 10% (I Think) profits are from there. Not sure of the detail. DYOR and post ur comments here for everyone to see.

yr Turnover m
2000 8.78
2001 11.12
2002 20.92
2003 42.44

Up yr on year and the price is still slumping I think this one is going to see a good recovery for the next six months. I'm in @174 with a medium/long term view.

Wolfson wobbles on China caution
Published: 11:36 Mon 26 July 2004
By Cliff Feltham, Companies Correspondent

Soaring demand for sophisticated electronic chips needed for MP3 players and other gadgets has created near boom conditions for Wolfson Microelectronics, but the shares are down sharply on concerns about China.

Chief executive David Milne today forecast that the second half would be even better than the first resulting in annual revenue growth of between 70-80%.

But the shares slid 32p to 219p just above last October's float at 210p on Wolfson's caution that demand from Chinese manufacturers of DVDs may not be as strong as expected.

The share price has been as high as 332p. The float was marred by news of a lawsuit from US group Cirrus Logic alleging patent infringement. Wolfson today said it continued to defend the case vigorously. Legal costs amounted to $1.8 million in the first half to the end of June. A similar figure is expected in the second half. The case is due to be heard later this year.

Edinburgh-based Wolfson (WLF) is known as a 'fabless' semiconductor company. It designs chips and sells them to large consumer electronics manufacturers. It does not actually own the huge wafer fabricator plants where the chips are produced. It subcontracts the manufacturing, hence the description 'fabless'.

First half revenues grew by 94% to $56.9 million (32 million) while profits before tax increased 123% to $9.3 million. Margins were an exceptional 50% reflecting the premium prices customers are prepared to pay for high quality chips. The company sees margins continuing in this area for sometime.

Milne told Citywire that the company had surpassed expectations 'on every measure'. Demand has been driven by manufacturers of audio and video systems and portable devices such as MP3 players, multimedia mobile phones, digital cameras and games consoles. This market is expected to double over the next three years.


'These new products based on digital technology require high performance mixed signal interface products such as those produced by Wolfson to allow users access to digital information,' said Milne.


As well as a strong 2004 the company is also anticipating 'high growth' continuing into 2005 underpinned by a healthy order book. But the market was slightly un-nerved by news that demand from Chinese makers of DVDs may not be as strong as anticipated.

Citywire Verdict:
Wolfson is in lift-off at the moment fuelled by the launch of new digital consumer products but at some stage margins are bound to come under pressure as manufacturing capacity out-strips demand. However, today's fall looks an over reaction and in the meantime the shares look good value.

Retracing again after a decent rise. Any views?

A little patience and this share will company will show its quality.

Agree with Fred1new

A bit more patience & I might even get a better price before it recovers.

I'm also waiting to top up but below 170.

September 27, 2004 12:37 PM US Eastern Timezone

Wolfson Moves into Audio for Digital Still Cameras; Launches First In A Series Of Audio CODECs For Cameras

SAN DIEGO & EDINBURGH, Scotland--(BUSINESS WIRE)--Sept. 27, 2004--Wolfson Microelectronics plc (LSE:WLF) today announced a mono CODEC addressing all of the major digital still and video camera audio requirements on a single chip, in response to growing demand for high-quality sound in portable, digital recording and camera equipment. The Wolfson WM8974 is a low-power, feature-rich CODEC and is the first in a series of products to be coming from Wolfson targeting digital still cameras and digital-voice recording applications.


The WM8974 features a DSP core that provides a wind-noise filter to improve audio recording during video-recording mode, a five-band equalizer to improve audio output and a programmable notch filter to reduce motor noise. The WM8974 also includes an integrated PLL supporting a wide operating frequency range from 12 to 19MHz. The device supports a differential or single-ended microphone complemented by the microphone pre-amp and ALC, followed by an output stage where the drivers for speakers and headphones are included to reduce component count in the final system. With the support of up to 5V, the speaker driver is capable of driving an industry-leading speaker output of up to 900mW.

The WM8974 operates at power supplies as low as 2.5 volts and consumes less then 10 milliamps during 48kHz playback, and operates on 1.62 volts in standby.

"Digital still cameras are increasingly differentiated by their audio capabilities and Wolfson is releasing a series of compact, high performance, affordable solutions that address this opportunity," said Yan Goh, product marketing manager at Wolfson

For what it is worth, I think this stock has great potential, but not buying in till the price knows where it wants to be.

Up one minute down the next, where is the support level?

seawallwalker

I agree.

Tue 28 Sep 2004


Boston boost as Wolfson grows


SCOTTISH technology company Wolfson Microelectronics has opened an office in Boston, its second in the US and its sixth base overseas.

The Boston office will support the companys expanding business on the east coast and complement Wolfsons first US office in San Diego, California.

Jeff Rozmus, who has been with the company for two years, is relocating to Boston to run the new office.

The semiconductor-maker also said it had moved into making audio chips for digital still cameras.

Wolfson has created a single chip that covers all the major digital still and video camera audio requirements in cameras, in response to growing demand for high- quality sound.

"Digital still cameras are increasingly differentiated by their audio capabilities, and Wolfson is releasing a series of compact, high-performance, affordable solutions," said product marketing manager Yan Goh.

http://business.scotsman.com/technology.cfm?id=1134932004

Down again, another 4%

The price looks more & more attractive every day.

I'm not buying yet, I just don't know where the bottom is going to be.

Maybe the best time to buy will be in a couple of years when the Semiconductor market begins another upswing.