LONDON – Audio and MEMS mixed-signal chip company Wolfson Microelectronics plc (Edinburgh, Scotland) has announced a reduction in its net loss in the second quarter as it has increased its sales revenue. The company said it expects to return to "underlying profitability" in the second half of 2012.
The company made a net loss of $2.2 million on revenue of $40.3 million in 2Q12. This compares with a net loss of $6.2 million on revenue of $30.3 million in 1Q12. A year before in 2Q11 the company made a net loss of $2.6 million on revenue of $38.6 million. Revenue was up 33 percent sequentially and 5 percent year on year.
Wolfson said ramping sales were largely due to design-ins with smartphones and that three leading manufacturers of mobile devices have selected Wolfson MEMS microphones for products due to launch in 2H12.
Revenues in 3Q12 are expected to be in the range $46 million to $54 million, depending on customer product ramps with the mid point being 24 percent up on 2Q12.
"Despite consumer market headwinds persisting, our first half results are in line with previous guidance and we have achieved considerable revenue momentum. Our audio hubs and MEMS microphones continue to be adopted at record levels by brand-leading companies, particularly in smartphones and tablet computers," said Mike Hickey, CEO of Wolfson, in a statement.
Kris, the MEMS microphones market is commoditized to the hilt with low margins. The volumes have to be high enough to erase Wolfson's losses. Besides Wolfson may also have loss-leading product lines which might have been offset by the microphone sales.