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

Hard to believe that this was over 3 just a few months ago.

Down 53p, ouch!

Wolfson cuts H2 sales forcast to 56-60 mln usd on sluggish pre-Christmas trade
AFX


LONDON (AFX) - Wolfson Microelectronics PLC has cut its second-half sales guidance to 56-60 mln usd after a 'lack of the typical pre-Christmas surge in demand' for some of its products.

It now expects a full-year sales growth rate of 50-55 pct, down from a forecast of 60-70 pct made after its interim results.

tc

DOWN over 30%

I was right to stay away from this!

So was I.......

good call guys. Being stung badly here. live and learn then !!

Wolfson Microelectro - Trading Statement
RNS Number:9185DWolfson Microelectronics PLC11 October 200411 October 2004 Wolfson Microelectronics plc Update on TradingWolfson Microelectronics plc (Wolfson or 'the Company'), a leading supplier ofmixed signal semiconductors for the digital consumer electronics market,provides an update on trading since the announcement of the interim results on26 July 2004.Statement on Current TradingIn common with other semiconductor companies, Wolfson is experiencing a slowdownin some of its end markets. Although trading until recently was broadly in linewith expectations, order intake levels have led the Company to reassess itsoutlook for 2004.In the consumer audio segment, particularly DVDs, the acceleration in ordersnormally seen at this time of the year is not occurring. This is due to a buildup of surplus inventories at manufacturers, causing some customers to cancelorders and delay placing new orders as they deplete their excess inventory.The Company is continuing to experience strong growth in portable products withsales in this segment expected to more than double in 2004, compared with theprevious year, making it the largest contributor to the Company. However, theuptake of multimedia mobile phones in the end market has been slower thanexpected, causing some customers to scale down their orders.Trading within the imaging product sector is in line with the Company'sexpectations.As a result, Wolfson now expects its second half revenues to be in the range$56m-$60m. This equates to full year revenues of $113m-$117m, representing anannual growth rate of 50%-55%. Gross margins continue to be in line withprevious guidance of 49-51%.The Company continues to expand its customer base, particularly in Japan and theUSA where it has won significant design-ins for major new digital consumerproducts that are to be launched under global brand names next year. Inaddition, the Company has expanded its portfolio with new products that arebeing adopted in the latest digital consumer applications. Hence, in spite ofthe challenging current market conditions the Company expects to deliver growthin 2005.David Milne, Chief Executive Officer of Wolfson, said: 'We are revising ourguidance for the second half because of a lack of the typical pre-Christmassurge in demand for some of our products. Although this is extremelydisappointing, Wolfson will still deliver substantial growth in 2004.'We are continuing to gain market share with our products that are featuring inan increasing number of high profile digital consumer applications supplied bytier-one US and Japanese multinationals. The business remains strong and weexpect to deliver growth in 2005.'Note on Cirrus Logic litigationAn initial determination in the US International Trade Commission investigationinitiated by Cirrus Logic (referred to in previous statements) is expectedaround mid-November. The Commission is expected to issue a final determinationby mid-February 2005.Enquiries:Wolfson MicroelectronicsDavid Milne, CEO 0131 272 7000George Elliott, CFOCorfin CommunicationsHarry Chathli, Neil Thapar 0131 272 7398 on the day and thereafter 0207 645 2990 This information is provided by RNS The company news service from the London Stock ExchangeENDTSTFGMMGMGKGDZZ

sales growth rate of 50-55 pct still sounds good, doesn't it?

Balance sheet as at 30th June looks very clean, modest stocks and substantial net cash. Prospects remain satisfactory, even if well below earlier expectations. I think the fall overdone, but only committed to 2500 shares at 102p, with stop loss at 80p, just in case this warning is not the first.

Re the above post - should have referred to this warning not being the last - even an old codger like me can tell it is the first!

partridge

Make sure you stick to your stop loss.

The fall was overdone when it fell in July but it went on & on falling.

There must be some shorting going on.

Plus the semiconductor matket is heading for downturn.

partridge, same here bought some more @ 102.5

shares plunge on sales warning
LONDON (Reuters) - Wolfson Microelectronics (LSE: WLF.L - news) has lost over a third of its market value after it scaled down its guidance for second-half revenues, blaming slowing demand in some key markets.

Shares in the firm were 30 percent lower at 115 pence by 8:35 a.m. on Monday, off early lows of 105p, after the supplier of parts used in DVD players and cameras said it now expected second-half sales to come in at between $56 million and $60 million (31 million and 33 million pounds).

In July, Wolfson had reported 94 percent growth in first-half revenues to $56.9 million and forecast even greater revenue growth in the second half.

"We are revising our guidance for the second half because of a lack of the typical pre-Christmas surge in demand for some of our products," Chief Executive David Milne said in a statement.

"Although this is extremely disappointing, Wolfson will still deliver substantial growth in 2004."

Wolfson's second-half guidance will put it on course to achieve 2004 revenues of between $113 million to $117 million, up between 50 and 55 percent on a year earlier.

Analysts had pencilled in 2004 revenues of $134 million, according to a consensus forecast from Reuters Estimates.

The Scotland-based company, which listed on the London market last year, said that while trading was broadly in line with expectations until recently, order intake levels had since suffered.

In the DVD market, an acceleration in orders usually seen at this time of the year was not taking place due to a build-up of surplus inventories at manufacturers, causing some customers to cancel orders and delay placing new orders.

Market purchases of multimedia mobile phones were also slower than expected, causing some customers to scale down their orders, Wolfson said.

However, the company said it continued to experience strong growth in portable products such as music players and forecast sales in this segment would more than double in 2004, making it the largest contributor for Wolfson.

Monday's warning caused Wolfson's market value to fall to around 116 million pounds

Milne added it was still seeing to experience strong growth in portable products such as music players and forecast sales in this segment would more than double in 2004.


http://uk.biz.yahoo.com/041011/214/f4b8d.html

Citigroup Smith Barney reiterates buy Wolfson Microelectronics (LSE: WLF.L - news).

http://uk.biz.yahoo.com/041011/336/f4bbo.html

azhar

Like I said in July, this fall is just silly but then it just goes on getting sillier.

I'm still staying out of this 1 until after the next big fall.

These things tend to happen in threes, don't know why.

Good call apple i.e. wanting to stay out.I'm in and staying in for the next 4/6 months as stated previously.

guys if you are investing for the medium term then WLF could be a great investment.

I understand from a friend that they are well positioned for the big change in DVD technology which is coming next year with the introduction of Blu-ray. This change will require significant changes to DVD equipment & could well play into their hands. I would expect to see them sign up some more major players in the coming months.

Whooa! Sure some people want to have the latest kit, but the vast majority are quite happy with players and things that fit in your ears. That sadly is the bulk of the market and provided the darn thing works then they are unlikely to buy again, just because it's blue.
My understanding is that the shorter wavelength of blue light means more data can be squeezed onto a disc - good news if you want to offer extra features to a film - interviews, discarded scenes etc.
However, I doubt there will be a surge in demand - much like the damp-squib effect of new phones (with cameras) - a great idea if you don't have a phone, but not sufficient to make you ditch the old one. For a technology to be a "must have\" it needs to offer a step-funtion of Improvments; neither DVD's or Phones have this, IMHO. I don't yet hold these. Maybe if the price came down to give a distinct buffer-zone should another PW come along -(yes they do come in 3's = one more to go.)
Regards

Wolfson not so fab as China problems escalate
Published: 13:12 Mon 11 Oct 2004
By Douglas Bence, Companies Correspondent
Email to a friend | Printable Version

'Fabless' semiconductor company Wolfson Microelectronics sees more than 50 million of its market value wiped away as investors run scared of its latest warning.

Sales of DVD players and multi-media mobile phones have dried up in the Far East, forcing the company to reduce its anticipated sales forecast for the second half of the year from between $113-117 million to $56-60 million. Gross margins remain between 49-51%.


After the downgrade Wolfson expects revenue growth between 50-55%. This compares with expectations of 70%-80% growth at its interims in July when the Edinburgh-based company first cautioned about the weak demand from Chinese manufacturers.


Shares in the company (WLF), which unfortunately Citywire tipped after their listing a year ago, crashed 62.5p to 101.5p, a fall of 38%.


Formed in 1984 by David Milne and Jim Reid, Wolfson supplies mixed signal semiconductors for the digital consumer electronics market. It is known as a 'fabless' semiconductor company because it designs chips and but subcontracts the manufacturing to partners in the United States, Asia Pacific and continental Europe.


Trading was in line with expectations until recently, but a slow down in the sales of the end products in the Far East led to orders being cancelled or delayed.


The biggest contribution to revenue comes from the sale of chips for MP3 players and Palm products which are still expected to double this year. Trading in the imaging product sector is in line with expectations.


We are revising our guidance for the second half because of a lack of the typical pre-Christmas surge in demand for some of our products, said chief executive David Milne. Although this is extremely disappointing, we will still deliver substantial growth in 2004.'


New customers in Japan and the US for new digital consumer products will allow the company to grow next year, he added.

2004 Citywire

Stay out if you can ufn.

hangon,

Blu-ray is a step change, 4.7Gb to around 30Gb which is eagerly awaited by PC users, they want bigger DVD writers.

BUT that's not the point, I doubt if WLF will get much of the market for the chips to control those drives. Those chips are normally designed by the drive manufacturers themselves.

The price of WLF just gets sillier, such is the reaction to management overestimates even though WLF is doing fine & has what looks to be a very good future.
Stay away from WLF, until after the 3rd big fall.