WOLFSON Microelectronics has seen sales rise by more than 59 per cent, as demand for its smartphone audio chips were buoyed by the success of Korean giant Samsung.
The Edinburgh-based firm recently signed a deal that will see the audio chips it designs used in all of Samsung’s smartphones and tablets. Its technology is also powering handsets from the likes of BlackBerry and Lenovo, China’s second-biggest mobile seller, resulting in revenues of $48m (£30.9m) in 2013’s first quarter, against $30.3m a year earlier.
However, the company revealed that it fell into a loss during the first quarter, although at $6.3m this was narrower than in the first quarter of 2012. And though sales beat expectations, shares stayed flat as the company warned that growth in the second quarter of the year would not be as strong.
Chief executive Mike Hickey told City A.M. that this year, Wolfson Microelectronics hopes to make its first annual profit since 2008. “The loss does bother us, but we do think we’ll be in full-year profit,” he said. The firm, which also makes chips for other goods such as TVs, expects to be boosted by growth in China.