Loss of £0.83 million for the three months to July 1 takes first-half pre-tax loss to £7.07 million
Wolfson Microelectronics has reported an underlying loss of $1.3 million (£0.83 million) for the second quarter of the year but expects to move back into profitability in the second half.
The loss for the quarter compared with a loss of $2.9 million (£1.85 million) at the same point a year ago.
There was a slight improvement in the level of operating losses in the second quarter, from $3.5 million (£2.23 million) last year to $3 million ($1.91 million) for the three months to July 1, 2012.
First-half revenues were $70.6 million (£44.9 million), down 11 per cent on the $79.7 million (£50.7 million) reported for the first half of 2011.
This left a first-half pre-tax loss of $11.1 million (£7.07 million), up 16 per cent on the $7 million (£4.46 million) reported for the first half of 2011.
However, Wolfson has reiterated a statement made previously it expects five new smartphone customers will lift the financial performance in the second-half.
This relates to a spike in demand for Wolfson's “audio hub” chips, underpinned by a recent major new contract win with mobile phone giant, Samsung for its new Galaxy S III smartphone.
Wolfson's WM1811 Audio Hub provides high definition audio quality which is a low-powered technology designed to extend smart phone battery life.
The technology firm said development costs for the first-half had raised underlying operating expenses to $42.1 million (£26.8 million) on $41.6 million (£26.5 million) last year.
Overall research and development spending rose to $24.8 million (£15.8 million), or 35 per cent of revenues compared with $22.4 million (£14.2 million) and 28 per cent of revenues last year.
Wolfson said the rise in costs reflects the inclusion of Dynamic Hearing acquired in September 2011, amounting to $1.5 million (£0.96 million).
The company also increased research and development spending in development of two new process technology nodes.
The Edinburgh-based semiconductor manufacturer said second quarter revenues rose by a third on the previous quarter to $40.3 million (£25.6 million) from $30.3 million (£19.3 million) and rose by five per cent year-on-year.
Sales of mobile phone components rose by 30 per cent year-on-year, driven by smartphone design-ins.
Design-in value – where Wolfson components have been chosen for inclusion in new smartphone, tablet computers and smart device designs – is now reported to be at record levels
Wolfson chief executive, Mike Hickey, said: “Despite consumer market headwinds persisting, our first half results are in line with previous guidance and we have achieved considerable revenue momentum.
“Our Audio Hubs and MEMS microphones continue to be adopted at record levels by brand-leading companies, particularly in smartphones and tablet computers. Consumer demand for great audio in smart devices is driving this product adoption success.
“Customer new product launches, mainly smartphones with Wolfson devices inside, enabled strong sequential revenue growth of 33 per cent in the second quarter.
“This momentum, coupled with further customer new product launches expected this year, positions the company well to achieve a further step up in revenue and an anticipated return to underlying profitability in the second half of 2012.”
Shares in Wolfson dropped nearly half a percent in early trading today to 205 pence.