LONDON Sales at Wolfson Microelectronics surged 21 per cent to £34 million ($70 million) in the third quarter ended September 30 compared with the same period last year, and the supplier of audio chips for consumer electronics products like the iPod said it was expecting 11 to 14 per cent growth in full-year revenues to between $226 million and $232 million.
However, the good figures and bullish forecast disappointed investors and the shares dipped as the company revealed the results, recovering slightly later.
Wolfson also suffered from the continuing weakness of the U.S. dollar, since it reports in the U.S. currency while it has a sterling cost base. Each one cent weakening of the dollar against sterling is said to cut the company's s operating profit by $260,000 over a year.
Operating profit for the quarter was $13.7million, compared with $15.5million in the third quarter of 2006.
Operating expenses were $23.3 million for the quarter, higher than anticipated, reflecting recent increases in headcount for new product development.
Wolfson (Edinburgh, Scotland) launched its AudioPlus power management devices earlier this month and the company said it has started shipping the parts to at least one major, but un-named manufacturer of mobile audio products.
Commenting on the results Dave Shrigley, Chief Executive Officer of Wolfson, said: "Wolfson set a new record in the third quarter by delivering its highest-ever quarterly revenues. The company has made good progress with the integration of its recently acquired technologies and has benefited from some significant new design wins.
"Looking ahead, order backlog for the fourth quarter remains encouraging in the current peak season for the consumer electronics market. As a result, we remain on track to achieve double-digit growth for the full year and are confident that our momentum will continue to drive superior performance."