LONDON Bluetooth chip specialist CSR plc doubled both sales and profits for the year ended 30 December 2005, but the results were not enough to see the company’s share price fall by 14 percent on the London stock exchange.
CSR (Cambridge, England) saw sales grow by 92 percent year on year to $486.5m and said it won 460 new designs during the year, nearly half in handsets or headsets. Pre-tax profits for the year were up 94 percent to $114.4 million.
Latest handset design wins include Kyocera, LG, Nokia, Pantech Curitel, Philips, Purple Labs, Quanta, Samsung, Research in Motion and TCL, and the company said new areas of application for its chips, for instance MP3 adaptors, look promising.
The company claimed over the year it had won 69 percent of design wins using the Enhanced Data Rate version of the Bluetooth protocol.
CSR did not give an up-date of the success it has had in breaking into the Wi-Fi chips business.
Looking ahead, the company said it anticipates continued strong growth in the Bluetooth market for 2006 and estimates year on year growth in unit shipments to be around 60 percent. It added it expects attach rates in mobile phones to reach 35 percent for the year as whole.
For the first quarter of this year, it expects sales to be between $125 million to $135 million, which is almost double achieved for the first quarter of 2005, but slightly downrated from previous forecasts.
"We estimate the Bluetooth market has more than doubled in unit terms during the year, and these results reflect CSR's position within this market and our success in driving down the cost of our Bluetooth solutions, whilst simultaneously increasing their functionality and reducing size and power consumption," commented outgoing CEO John Hodgson.
Hodgson retires at the end of this month, to be succeeded by John Scarisbrick.
"The handover process has worked very smoothly, aided by John's previous close familiarity with CSR through his time as a non-executive director, as well as his extensive knowledge and experience in the semiconductor industry," said Hodgson.