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CSR Narrows Second Quarter Guidance, Announces Further Share Buyback

June 24, 2014

Hana Stewart-Smith

LONDON (Alliance News) - CSR PLC Tuesday narrowed its revenue expectations for its second quarter, and revealed plans to return an additional USD20 million to shareholders through a share buy-back in addition to the USD50 buy-back it announced in February.

The chip maker said it now expects its revenue in the second quarter to be between USD190 million to USD200 million, it had previously guided between USD190 million to USD210 million at the time of its first-quarter results in April.

CSR said it had already returned USD45.9 million of its planned USD50 million share buy-back, and as a result of selling some intellectual property assets from its camera business, plans to buy back a further USD20 million.

The company has sold intellectual property assets relating to its camera-on-a-chip business for USD44 million. CSR decided to stop future investment in the business in December 2013. It does not expect any material effect on revenue and underlying operating costs as a result of the sale.

It also will allocate USD20 million of the proceeds to its Employee Benefit Trust, in order to purchase shares in the market and reduce dilution from the future issue of shares under incentive programmes.

Additionally, the company said Tuesday it had acquired Cambridge based private company Reciva Ltd. Reciva provides radio and streaming music services under a common interface. CSR did not provide financial details of the acquisition.

Shares in CSR were trading down 0.4% at 572.00 pence Tuesday morning.

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Source: Alliance News

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