CAMBRIDGE, England Bluetooth specialist CSR’s performance in the first quarter of its financial year ending 2nd April 2004 was stronger than expected fuelled by an increase in revenue resulting from end market demand for the high growth applications including mobile phones and headsets, PCs and PC peripherals. The increase in mobile phone revenue resulted partly from the first significant shipments to Nokia.
Revenues for the quarter amounted to $36.8 million, representing a 38% increase from $26.7 million in Q4 2003, and a 243% increase from $10.7 million for Q1 2003. Revenue was predominantly made up of chip and development product shipments with negligible royalty.
Average selling prices (ASPs) for CSR’s products declined slightly during the quarter by just over 2%.
Gross profit for the quarter was $17.8 million, up 32% from $13.5 million for Q4 2003 and up 315% from $4.3 million for Q1 2003. Gross margins were 48.3% of revenue, compared to 50.4% for Q4 2003 and 40.0% for Q1 2003.
Operating profit for Q1 2004 was $6.7 million, 87% above the $3.6 million achieved in Q4 2003. This compares to an operating loss of $2.7 million in Q1 2003.
CSR’s design wins (qualified end products and modules notified on the Bluetooth Special Interest Group website) saw 72 new products, including mobile phones, headsets, laptops, PDAs, PC peripherals and consumer electronics from 53 different customers incorporating CSR’s solutions. This figure represents over 60% of all Bluetooth product qualifications listed on the Bluetooth website in the quarter.
The company won 7 of the 9 mobile phone design wins in the quarter, namely the Nokia 6230, 6230a, 6810 & and 6820b, Sharp GX30, BenQ P30 Smart phone and a Pantech mobile phone. In addition, CSR won 14 headset designs including the Jabra BT100 and the Plantronics M2500. To date, CSR now has 22 mobile phone qualifications representing 33% of the industry total.
CSR’s third generation IC, Bluecore3 ROM, started shipping in March 2004.
Headcount increased from 198 at the end of Q4 2003 to 210 at the end of Q1 2004 and as a result of increased business levels and new R&D projects, CSR expects to add headcount throughout the remainder of 2004 principally in R&D, sales and applications engineering.
For Q2 2004, CSR expects to exceed the rate of growth experienced in the first quarter and also believes that the annual growth in both units shipped and revenue for 2004 will be at a higher rate than was achieved in 2003 although the growth rate during the second half of 2004 is unlikely to be as high as in the first half of 2004.