Wolfson shares fall 15pc on $20m loss
Audio semiconductor company Wolfson Microelectronics has seen its shares plunge 15 per cent this morning, after it reported revenues and gross margins dwindled in the fourth quarter as it turned a loss.
The Edinburgh firm said revenue was hit by a "very volatile" phone market and faster-than-expected transition to 4G smartphones "benefitting a competitor".
Revenue fell 25 per cent from $56.1m to $42m (£25.7m) in the fourth quarter from a year earlier. For the year as a whole, revenue was flat.
Loss before tax was at $20.4m (£12.5m) – up 53 per cent from the $9.4m loss seen in 2012. Full-year gross margins were 42.3 per cent, from 46.9 per cent in 2012.
Strong growth in the first half of the year was offset by a weak second half, said Wolfson. Revenues were down 21 per cent “as demand from key customers slowed markedly… the largest customer in 2013 represented 47 per cent of revenue.”
The cancellations from one of the Blackberry and Samsung supplier’s major customers meant a tough quarter, and it issued a second profit warning in October, which saw shares nosedive 18 per cent.
Shares are currently down just over ten per cent:
(Google)