A new thread for Cambridge Silicon Radio, a bluetooth play for 2004.

Cambridge Silicon Radio Holdings Ltd, the Bluetooth technology group that is about to list on the London Stock Exchange, said its offering will be priced at 160-200 pence a share.

The indicative price range corresponds to an offer size of 54-68 mln stg and a market capitalisation for the company of 192-239 mln stg after flotation.

CSR designs and manufactures single-chip radio devices - focusing initially on solutions for the 2.4GHz Bluetooth personal area networking standard. The background and experience of our development team give CSR a unique advantage to help OEMs exploit the new wave of wireless networking, allowing us to offer the most highly integrated single-chip Bluetooth solutions, which are based on commodity CMOS technology with all its inherent advantages.

www.csr.com

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CSR, which has secured over 70 mln usd of funding from a number of investors including Compaq Corp, Philips Electronics NV, Sony Corp, Intel Corp and 3i Group PLC, was founded in 1998.

The company claims on its Website to be the world's leading provider of Bluetooth, accounting for 60 pct of all Bluetooth end-products.

Bluetooth is a low-cost, short-range radio link between mobile PCs, mobile phones and other devices, enabling users to connect a wide range of devices easily and simply, without the need for cables.

CSR Q1 results now out ..... To my amateur eye, they look stunningly good ...... Pre-market has marked sp up just 11p, but real market reaction will come shortly after 08:15 with company conference call.

Sorry to crow, but did I make a good call or what?????!!!!! ....... Sp has now truly roofed it = +180 this morning

Meant to post the following here instead of Traders Room ........... A real rollercoaster on this share for the last month ...... Rocketed from 1200 to 1400 in the first week, tumbled back to 1200 in the general fallout and suddenly found favour again today pushing sp to 1448 (near peak) on at least double normal volumes.

I know I have said it before, but will say again .... This is a company with a great product and track record and, though a heavyweight, deserves a place in anyone's portfolio, even if for some strange reason it does tend to be quite volatile.
Thread List

have just posted on this share in Traders Room ..... well worth watching or even buying

Nick Fletcher
The Guardian


The biggest major casualty of the day was CSR, the bluetooth equipment group formerly known as Cambridge Silicon Radio. Its shares slumped 25% to 856p after it cut revenue forecasts for the year, blaming weaker than expected second-half demand from a major headset customer - thought to be Motorola. Panmure Gordon originally advised clients to sell after the news, but revised that to hold after this morning's fall. "The shares, which will need time to settle, are clearly being penalised for the lack of visibility and the fact that most brokers have been bullish," said Panmure. "We have downgraded our price target from 1280p to 1000p and cut our recommendation from buy to hold."

Others brokers were more optimistic. Bridgewell maintained its overweight rating, saying, "We believe both CSR's competitive position and the fundamentals of the bluetooth market remain strong." Charles Stanley said it expected the share price to recover and told clients to accumulate. "There may or may not be technical factors [for the share price fall], with a large volume of trading, such as investors cashing in some of their significant profits since the IPO, or active traders of one sort or another selling the shares short," said the broker.

19 September 2006


Citigroup (NYSE: says buy CSR


Deutsche says buy BP (cutting the price target to 690p from 700p) and CSR (cutting the price target to 1100p from 1240p).

UBS (Virt-X: UBSN.VX - news) says buy CSR.

From UK-Analyst.com: September 19th 2006
Brokers' notes


Following the profits warnings from CSR on Monday, UBS said it thought the long-term story remained intact. The broker noted that the group attributed the bulk of the shortfall to push outs by headset customers as well as two other customers in other application areas. Although the broker accepted that the revenue guidance downgrade suggested some slackening of Bluetooth momentum in the mono headset market, UBS said it believed that medium-term growth prospects for CSR remained broadly intact, evidenced by design win market share increasing in the third quarter to in excess of 60%. The broker trimmed its current-year earnings per share estimates to 50.44p from 56.87p and its 2007 forecast to 59.1p from 65.04p. The broker also slashed its target to 1,200p from 1,700p, but maintained a "buy" stance. The stock rose 48p to 904p

Wednesday September 20, 2006
The Guardian

CSR, the Bluetooth specialist, bounced back a little after this week's profit warning. Its shares added 48p to 904p, with Deutsche Bank saying the previous day's 25% drop was an over-reaction. ABN Amro was also positive on the company.

Dresdner Starts CSR With Sell Rating

Dow Jones: Dresdner starts CSR (CSR.LN) coverage with a sell rating, after a warning on Monday sent the stock down 25%. Says there were warning signs of clearly rising headset inventory at its main customers, GN Store Nord (GN.KO) and Plantronics (PLT). However, to compound matters, Dresdner believes GN is planning to start using rival Broadcom (BRCM). Meanwhile, in wireless, believes CSR's share is also set to fall. GN is not immediately available to comment. Dresdner has a 770p target. CSR closed -3.2% at 875p.

CSR profits warning is rude awakening for investors in chip-making companies


By Eric Culp In Frankfurt
24 September 2006 (The Business)

INVESTING in semiconductor companies is seldom for the faint-hearted. Roller-coaster chip demand and selling prices see to that.

So a second-half revenue warning from Bluetooth chipmaker CSR within weeks of a buoyant second-quarter statement and well ahead of post-Christmas stocktaking, is mildly shocking, if not surprising.

For one thing, US rival Broadcom warned recently that orders from one of its biggest customers, Motorola, were slowing. CSR isnt overly exposed to Motorola, counting Nokia and Samsung among its top customers.

But Mondays warning is still a rude wakening for CSRs management and investors.

Slowing sales momentum comes at a time when the company needs all the R&D dollars it can get to broaden its portfolio by focusing on more integrated products those that offer memory, signal processing, radio frequency on one chipset.

CSR will have to continue offering side products, too, including those that dont belong to Bluetooth family, like FM Radio and WiFi. For the latter, it may even look to some small acquisitions.

But the sales outlook doesnt look good near-term. At CSR, management has scaled back a forecast for fourth-quarter revenue growth to being less than 5% of the previous three months. That leaves CSR headed for 2006 sales of around $730m rather than the $800m analysts had anticipated.

The slowdown comes at a critical time. The CSR is in the middle of an R&D push to bring new Bluetooth products to market. Headcount rose 13% to 810 in the second quarter.

Curbing spending in this area isnt an option given the pace of competition. Infineon, STMicro and Texas Instruments have been doing beauty parades among some top OEMs, and reporting some wins.

Assuming earnings-revenues ratios remain constant, the consensus estimated EPS for 2006 should fall below 50p a share. Discounting the current consensus by higher relevant expenses, including marketing and R&D spending, and CSRs 2006 earnings might come in between 45p and 48p. That leaves shares trading at roughly a 19X price-to-earnings multiple.

This is still cheaper than 21X that of Broadcom and 25X of Atheros Communications, a specialist in WiFi, an area CSR is getting into.

If the company or any of its OEM vendors dont come up with further negative news between now and Christmas, todays valuation could even attract a big-budget bidder.

Sony cuts price of delayed PlayStation 3 console

Justin McCurry in Tokyo
Saturday September 23, 2006
The Guardian


Sony said yesterday it would cut the price of the long-awaited PlayStation 3 game console by 20% in Japan when it goes on sale in November.

The company feared the original price of 62,790 (284) would push gamers towards cheaper rivals made by Microsoft and Nintendo in the battle for supremacy in the console market. The cheaper PS3, with a 20GB hard drive, will now cost 49,980, the firm said.

Ken Kutaragi, head of Sony's game unit, said: "What is important is that we get more consoles sold to make up for the price cut, and get more game makers and chip makers in our camp."

The Times
October 03, 2006
Stock Markets

Danish customer's profit warning spells further trouble for CSR
By Nick Hasell

CSR fell a further 3 per cent yesterday after a profit warning from a Danish customer stoked fears that last months trading alert from the Cambridge-based developer of semiconductors may not be its last.

The trading update from GN Store Nord was overshadowed by the sale of its ReSound business to Phonak, the Swiss hearing aid maker, for $2.63 billion (1.4 billion), but analysts who scrutinised GNs statement were unsettled by the weakness of its flagship mobile headset operation, which it said would make a loss this year after a 42 per cent fall in quarterly sales.

Dresdner Kleinwort said that performance exceeded its worst fears and suggested that further problems could lie ahead in the headset market, which accounts for around one third of CSRs revenues. With the German broker also suggesting that GN may start to source semiconductors from Broadcom, of the United States, as well as from CSR, it repeated its sell advice and 770p target. CSR dropped 29p to 814p.

Down 111p at 669p


CSR warns of weakness ahead - MoneyAM

CSR, the bluetooth microchip designer, said third-quarter revenue rose 32%.

However it warned its second-half results would be weaker than expected due to a shift in the mobile phone market.

The Cambridge-based company, whose radio chips are used in mobile phones, portable digital assistants and laptops for swapping data over a short range, said revenue for the three months to September 29th rose to $214.1m versus $162.5m in the same period a year earlier.

Pretax profit rose 15% to $52.3m from $45.5m.

However CSR warned that fourth-quarter revenue was likely to be between $160m-$180m, lower than originally expected, due to the growing number of cheaper mobile phones that do not incorporate bluetooth technology.

'Whilst it is disappointing that our second half 2006 will not be as strong as anticipated, the Board is confident that further significant growth will be achieved in 2007,' CSR CEO, John Scarisbrick, said in a statement.

Diluted earnings per share rose to $0.28 vs $0.24, while CSR said its Bluetooth unit market share for the third quarter was more than 50%.

CSR said it expects the Bluetooth market worldwide to grow by between 60% and 70% in 2006, driven by mobile phones and headsets.

Is there another bus due shortly or is that the third one?

2nd

Closed down 135p at 645p.

time to bring this back to watch



red = 25 dma
green = 50 dma

good break out and looks right ..... have just bought for myself

It is interesting to note that the company has decided to try something new like the GPS market on the mobile phones prior to the result announcement next month. I have a feeling the results are not going to be all that spectacular like it usually is.
However, the potential of GPS on mobile phone can be pretty massive. Just think you could possibly locate the phone when its stolen (possible reduction of crime theft) or keep track on your own children etc.
Just imagine how popular it will be, like it has been with Bluetooth in the pass years plus the popularity of the tom tom etc. I think we should watch this company in the near future especially after the results and see what they have to say for future developments