Wireless connectivity solutions semiconductor group CSR PLC (LSE: CSR) jumped more than 12% early in the session after the company said second-quarter revenue was in the upper range of expectations and that the integration of SiRF Technology Holdings, Inc. was on track.
CSR expects to generate annualized cost synergies of US $ 35 million from the acquisition of SiRF Technology, and has confirmed that it is on track to meet or even exceed that number.
“The SiRF merger has strengthened CSR’s expanded market position and long-term growth platform, creating a leading provider of wireless connectivity solutions and location platforms,” the company said. .
Financial highlights included a 40% increase in revenue to US $ 113 million, which included a week-long contribution of US $ 2 million from SiRF. Gross margins increased slightly, from 0.1% to 41.2%. The underlying operating loss fell to US $ 4.6 million from US $ 16.5 million in the previous quarter. The underlying diluted loss per share of $ 0.04 improved from a loss of $ 0.06 in the first quarter. CSR’s balance sheet also improved, with a combined net cash balance of $ 396 million.
Looking ahead, CSR announced that the next generation of Bluetooth devices began shipping in Q2 and that SiRF launched two new location platforms and recorded a number of “significant” design wins. of GPS.
For the third quarter, CSR expects revenue between $ 195 and $ 215 million.
Commenting, Joep van Beurden, Chairman and CEO, said: “The combination with SiRF has significantly strengthened our market position and our growth platform, while increasing our financial strength. We now offer our customers a comprehensive set of innovative Global Navigation Satellite Systems (GPS / GNSS), Bluetooth and integrated Wi-Fi solutions. As end consumers increasingly demand greater wireless connectivity for their phones, cars, laptops, netbooks and other consumer electronics, so our own customers are increasingly attaching importance to connectivity offerings such as ours. . “