- Q3 2013 gross margin is expected to improve further to approximately 44%, depending on product mix and MEMS microphone ramp
Commenting on the results, Mike Hickey, CEO of Wolfson, said: "Sales grew strongly year-on-year in the first half of 2013. Revenue growth moderated in the second quarter due to widely reported lower-than-expected end product sell-through at some key customers. We expect this to continue to impact revenue over the next few months, as customer inventory is run down, before growth resumes.
"Our Audio Hub products continue to grow strongly driven by smartphones, tablets and other smart device applications. As our Audio Hubs provide more features to our customers' products, selling prices are increasing and this is accelerating our growth prospects in a very large market. This, coupled with increased participation in fast-growing markets such as China, and our MEMS microphones becoming material to revenue, gives us increased confidence in the underlying strength of our business."
*Underlying results exclude: charges for the amortisation of acquired intangible assets (H1 2013: $0.8m; H1 2012: $1.0m); share-based compensation charges, including associated payroll taxes (H1 2013: $0.8m; H1 2012: $2.7m); and, in H1 2013, severance costs of $1.5m (H1 2012: $nil) and an exceptional pension past service charge of $0.6m (H1 2012: $nil). The term "underlying" is not defined in IFRS and therefore may not be comparable with similarly titled measures reported by other companies. Underlying measures are not intended as a substitute for, or a superior measure to, IFRS measures.
Mike Hickey, CEO
Mark Cubitt, CFO
020 7618 9100 On the day
0131 272 7000 Thereafter
020 7618 9100
Download the Second Quarter and Interim Results Presentation 2013 (PDF)
Mike Hickey, CEO, and Mark Cubitt, CFO, will be hosting a presentation to investors and analysts at 09.00 BST at JP Morgan Cazenove, Holborn Bars, 138-142 Holborn, London EC1N 2NQ. An audio webcast of the Wolfson Microelectronics plc 2013 Interim Results presentation can be heard LIVE from 09.00 BST via http://www.wolfsonmicro.com/investor/
Additionally, there is a dial in facility: UK freephone: 0808 237 0035; US toll free: 1 877 841 4558. A replay of the conference call is available from 11.30 BST on: +44 (0) 203 426 2807 or 0808 237 0026 or US: 1 866 535 8030; Access Pin 640760#
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