LONDON – Struggling fabless chip company Wolfson Microelectronics plc (Edinburgh, Scotland), has announced it has made a multi-year intellectual property licensing and component supply deal with Samsung Electronics Co. Ltd.
The value of the deal was not disclosed but Wolfson said the deal would make it Samsung's primary audio component partner and that the company expected to be the major supplier of audio components across Samsung's Galaxy range of smartphones and tablet computers, including the recently announced Galaxy S4 smartphone that will sell during 2013.
Wolfson has been a long-term supplier of audio components and technology to Samsung and had design wins in the Galaxy S3, the Galaxy Note II and the Galaxy Note 10.1.
Mike Hickey, Wolfson CEO, said the agreement was a "significant milestone" for Wolfson.
Wolfson Microelectronics has been making losses for a while.
In 2012 the company made loss after tax of $6.1 million on revenues of $179.7 million. In 2011 the company made a loss after tax of $17.9 million on revenues of $156.9 million. So things are getting better.
The company made profits after tax of about $1 million or about 2 percent of revenues of about $50 million in the last two quarters of 2012.
There is therefore hope of an improved profit in 1Q13 to be announced shortly.