Wolfson Microelectronics is a global leader in the supply of high performance mixed-signal semiconductor solutions to the consumer electronics market.

In the home, in the office and on the move, our innovative technology can be found at the heart of many of the world's leading digital consumer goods, including mobile phones, tablet computers, premier hi-fi equipment, gaming devices, MP3 players, flat panel televisions, digital still cameras and portable navigation devices.

Wolfson is committed to the design and supply of ground-breaking audio products, including its architecture-defining audio hub solutions, silicon micro-electro-mechanical system (MEMS) microphones, power management integrated circuits and noise cancellation solutions, all of which come together to allow Wolfson to deliver industry-leading audio solutions to consumer electronics applications. This rich portfolio allows Wolfson's global customers to better differentiate their digital consumer products and create whole new end-user experiences.

Wolfson's headquarters are located in Edinburgh, UK, and we have over 420 employees working out of 12 locations worldwide. Our customers are located worldwide and so are our sales and engineering teams, with offices across Europe, the US, Australia and Asia.


http://www.wolfsonmicro.com/

Acquisition of Wolfson Microelectronics Plc

http://www.moneyam.com/action/news/showArticle?id=4799895

1st Quarter Results

RNS


RNS Number : 7387F

Wolfson Microelectronics PLC

29 April 2014






29 April 2014



Wolfson Microelectronics plc

First quarter results to 30 March 2014



Improved margins and costs offset lower revenues; strong second half expected



Wolfson Microelectronics plc ("Wolfson" or "the Company"), a leading supplier of audio solutions for consumer electronic products, announces its financial results for the first quarter ended 30 March 2014.



Financial summary:

· Revenue of $28.8m (Q1 2013: $48.1m)

· Gross margin 47.1% (Q1 2013: 40.3%)

· Underlying* overheads reduced by 18% sequentially and year-on-year to $18.1m (Q1 2013: $22.1m)

· Net cash inflow from operating activities of $1.6m (Q1 2013: $11.6m outflow)

· Underlying* operating loss of $4.5m (Q1 2013: $2.8m loss)

· Operating loss of $5.7m (Q1 2013: $6.3m loss after exceptional charge)

· Cash and short-term deposits of $25.2m at 30 March 2014 (29 December 2013: $25.9m), no debt ($25m working capital facility undrawn)



Operational summary:

· Revenue continued to be impacted, as expected, by customer inventory overhangs caused by last year's faster-than-anticipated transition from 3G to 4G (LTE) smartphones

· Higher value-added Audio Hubs starting to come to market resulted in gross margin recovering strongly, up 680 basis points year-on-year

· Firm spending control and the benefit of recent re-structuring reduced overheads by 18% sequentially

· Wolfson and MediaTek announced a collaboration that will result in Wolfson's High Definition (HD) Audio solutions being a pre-integrated option on MediaTek's mobile LTE reference platform

· Wolfson continues to strengthen its relationship with Samsung with a number of design wins across a widening range of products including its GALAXY range of smartphones (including LTE models), tablet computers, digital still cameras, televisions and personal computers

· Outside of mobile phones and tablet computers, Wolfson's audio solutions are being adopted for a wide range of consumer electronics applications including the Internet of Things (IoT)



Outlook:

· Q2 2014 revenue is expected to be in the range of $28m - $36m depending on customer new product introduction timing and sell-through

· Gross margin in Q2 2014 is expected to be between 45% and 47%, depending on product mix

· LTE platforms that include Wolfson products are expected to come to market and be deployed as the year progresses



Recommended Cash Acquisition:

· As announced today, the Board of Wolfson has recommended a cash acquisition of Wolfson by Cirrus Logic Inc for the entire issued and to be issued ordinary share capital of Wolfson

· Under the terms of the acquisition, Wolfson shareholders will be entitled to receive 235 pence in cash per Wolfson share. The acquisition price per Wolfson share represents a premium of approximately 75.4 per cent. to the closing price per Wolfson share of 134.00 on 28 April 2014 (being the last Dealing Day prior to the date of this announcement)









Commenting on the results, Mike Hickey, CEO of Wolfson, said: "As expected, revenue continued to be impacted by customer inventory overhangs caused by last year's faster-than-anticipated flagship smartphone transition from 3G to LTE. However, these near-term revenue headwinds are being offset by strong improvements in gross margin as new higher value-added products start to contribute, and we realise the benefits of cost base reductions resulting from last year's restructuring activities.



"We are on track for a strong recovery in revenue as LTE smartphone platforms that do include Wolfson products are expected to come to market in the second half. Our position as audio partner of choice for most LTE silicon platform vendors has been further strengthened by our collaboration with MediaTek for its LTE solutions, which should also improve our position in the fast-growing Chinese smartphone and tablet market where MediaTek has strong market share."





*Underlying results exclude: charges for the amortisation of acquired intangible assets (Q1 2014: $0.3m; Q1 2013: $0.4m); share-based compensation charges, including associated payroll taxes (Q1 2014: $0.9m; Q1 2013: $1.0m). Also, in Q1 2013, severance costs of $1.5m (Q1 2014: $nil) and an exceptional charge of $0.6m (Q1 2014: $nil). The term "underlying" is not defined in IFRS and therefore may not be comparable with similarly titled measures reported by other companies. Underlying measures are not intended as a substitute for, or a superior measure to, IFRS measures.

Closed up 75%

Yes.


A nice littler earner!

Not for me Fred. :-(