StockMarketWire.com - Wolfson Microelectronics narrowed its first-half pretax loss to £8.8 million, from a loss of $11.4 million. Revenue was $93.5 million, from $70.6 million.

"The Company expects to return to strong revenue growth within the subsequent couple of quarters as customer inventory normalises, customer new products launch and revenues from higher value Audio Hubs and MEMS microphones both become material," it said.

Wolfson said third-quarter revenue was expected to be in the range of $40 million to $50 million, depending on customer new product ramps and product sell-through.

Its third-quarter gross margin was expected to improve further to approximately 44%, depending on product mix and MEMS microphone ramp.

Of the just-completed half, CEO Mike Hickey said sales grew strongly, while 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."





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