News

Wolfson sees deterioration in order intake

27 October 2008 08:00:00

Scottish semiconductors firm Wolfson Microelectronics said it has experienced a further broad based deterioration in order intake and rescheduling of orders as the market environment continued to weaken.

The group now expects fourth quarter revenue to be in the range $35m-$45m, resulting in anticipated full year 2008 revenue in the range of $196m-$206m. Fourth quarter and full year gross margin expected to be around 51%

Adjusted operating profit fell to $9.1m in the quarter ended 28 September from $14.5m last time. Revenue decreased 14% to $60.5m, due to the anticipated reduction in the company's sales into portable media players (PMP) and portable navigation devices (PND), and more widely reflecting the slowing macro-economic environment.

"Wolfson continues to be affected by the unprecedented uncertainty surrounding global consumer confidence, leading customers across a broad range of applications to further scale back their orders to volumes well below normal seasonal patterns," said chief executive Dave Shrigley.

"In response we are continuing to control costs tightly to mitigate the impact on margins and maintain cash generation," he added.

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