Caution hits orders at CSR

City A.M. Reporter
CHIPMAKER CSR is seeing caution among its customers in the car, home audio and mobile sectors, and now expects fourth-quarter revenue to fall short of market expectations.

The Cambridge-based company, which makes GPS, bluetooth and wifi chips, said consumer demand was being hit by economic uncertainty in Europe and unemployment in the US, echoing comments made by its peers.

“There’s caution in the market, there’s caution in the order patterns,” chief executive Joep van Beurden said yesterday.

“On the inventory side things are OK, but people are just not willing to take risks with pre-orders.”

CSR’s lack of a bluetooth-wifi combination chip has left it sidelined as rivals captured most of the smartphone market. But van Beurden said yesterday its new combination chip was ready for internal validation.

CSR said it expected fourth-quarter revenue to be between $230m (£200m) and $250m, just short of consensus forecasts of $255m.

CSR met market expectations for the third quarter by posting revenue of $243m, including a one-off contribution from its acquisition of Zoran Corp in August.

On a standalone basis, revenue was $209.2m, down from $222.1m, while adjusted earnings per share fell to $0.13 from $0.19, although it beat forecasts of $0.11.

Shares in the group, which have nearly halved since 1 January, touched a two-and-a-half-year low before recovering to close 2.44 per cent down at 179.7p.