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CSR investors jittery over Bluetooth market share despite 104% jump in pretax profits
Added: (Tue Feb 28 2006)
CSR, the Bluetooth technology specialist, gathered pace...in negative territory this morning, losing 11% to 921p in early trading despite posting a doubling of pretax profits of 104% and offering investors an upbeat assessment of its prospects as it posted profits and revenues for the fourth quarter more than double the year earlier level.
The group said pretax profit for the three months to December 30th to $38.6m from $18.9m a year earlier as revenues rose by the same amount to $162.9m from $79.8m.
Looking ahead, the company said it is confident on the outlook for 2006 as a whole and it predicted continued expansion in the market for wireless Bluetooth technology. Specifically on the prospects for the first quarter of this year, CSR said it expects revenues to be up 88%-104% from a year earlier. However, there are concerns that Texas Instrument may chip away, (sorry about the pun at the company's blue tooth technology at mass production end of the market. Texas has won four of the last six handset designs registered by Finland’s Nokia, to which CSR was once sole supplier. Another concern is the delayed launch of Sony’s PlayStation 3 console, for which it is expected to provide the semiconductor design for the wireless controller.