CSR reports record full year revenues

• Record full year revenues and underlying gross margin
• Full year dividend increased by 15%. $50 million buyback proposed
• Expect good growth in Core revenues for 2013

*Underlying results are based on International Financial Reporting Standards, adjusted for amortisation of intangibles, fair value adjustments to inventory, share option charges, acquisition fees, integration & restructuring costs, litigation settlements, patent settlements, gain on disposal of development operations, other operating income, option premium for options on tender offer, the unwinding of discount on litigation settlements, the loss on close period share buybacks, the deferred tax effect of change in UK tax rate, the movement in uncertain tax positions and the recognition of tax losses brought forward. Please refer to the supplementary information for a reconciliation of IFRS to underlying measures on pages 31 and 32.

· Q4 2012 Financial performance:

o Revenue of $249.2m (Q4 2011: $244.0m), Core revenue $155.6m increased 7% year-on-year (Q4 2011: $145.6m),

o Increased underlying Core gross margin of 59.2% (Q4 2011: 55.8%),

o IFRS operating profit of $117.5m (Q4 2011: loss of $50.6m) mainly due to the Samsung transaction,

o Underlying operating profit of $15.3m (Q4 2011: $0.6m).

· Momentum in platform strategy, with platform revenue 58% of reported revenues (Q4 2011: 56%):

o CSR Bluetooth® Smart solution utilised in One Key wireless smartphone remote control from LG Electronics,

o Introduced Sonata, CSR's first consumer Wi-Fi® streaming DLNA networked audio processor, at CES in January 2013.

· Continued technical innovation:

o Announced latest version of IPS™ Universal Print Interpreter software with support for new Apple and Google print protocols,

o Extended reach of aptX®low latency codec to gaming and automotive markets adding 22 aptX licencees during the quarter for a total of 120 at 28 December 2012,

o Winner of two industry awards: SiRFstarV™ and SiRFusion™ location technologies honoured by CES in Best of Innovation Design and Innovation Awards category; also named "Outstanding EMEA Semiconductor Company" by the Global Semiconductor Alliance (GSA).

· Dividend and buyback:

o Proposed final dividend of $0.08 per ordinary share (2011: $0.071), representing a dividend of $0.118 per ordinary share for the financial year (2011 $0.103), an increase of 15% on 2011 full year dividend,

o Intention to return $50 million via buyback.

Joep van Beurden, Chief Executive Officer, said: "2012 has seen CSR accelerate its transformation, becoming a leader in integrated and differentiated technology platforms in several growing market segments. We delivered record revenues and underlying gross margins and ended the year with another good quarter with revenues at the top end of our guidance and increased underlying profits. The growth of our Core business has been especially pleasing with strong growth in Voice & Music and a solid performance by Auto.

"During the quarter, we successfully completed our tender offer and returned $285 million to our shareholders. We have ended the year with $333.3 million in cash and cash equivalents. Given the strength of our financial position, our confidence in future prospects and our focus on delivering returns to shareholders, the Board is recommending a final dividend of $0.08 per ordinary share, implying a full year increase of 15% year-on-year. In addition, we are proposing to return $50 million to shareholders via a share buyback.

"In 2013, we will continue to invest to develop our platforms in our five chosen markets of Auto, Voice & Music, Imaging, Bluetooth Smart and Indoors Location, which we believe hold good growth potential.

"Overall, our business continues to perform well, with continued strength in stereo Voice & Music. In addition, mono audio revenue growth in China driven by the enforcement of hands-free driving legislation and greater resilience in our Legacy business, is resulting in greater than expected revenues in the short term."

OUTLOOK

We expect first quarter revenues to be in the range of $215 million to $235 million.

For the full report, please see  www.csr.com

Notes to Financial Summary Tables

Non-GAAP Disclosure: Although International Financial Reporting Standards ("IFRS") disclosures provide investors with an overall view of CSR's performance, CSR also provides underlying line item disclosure. CSR believes that these underlying items (in particular, underlying gross profit, underlying gross margin, underlying cost of sales, underlying R&D expenditure, underlying SG&A expenditure, underlying operating profit, underlying operating margin, underlying finance (expense) income, underlying profit before tax, underlying tax, underlying profit for the period and underlying diluted earnings per share derived therefrom) provide additional information on underlying trends that is useful to investors. Management uses these underlying measures, along with the most directly comparable IFRS financial measures, to assess CSR's operating performance and value creation. These underlying measures form the basis for management's performance targets and resource allocation decisions, and are also used to determine and manage the long term growth of the business. We present and discuss these underlying measures in order to: (a) provide consistency with the way management views the business and discuss performance with investors; (b) ensure that the measures are fully understood in the light of how CSR manages the business; (c) properly define the metrics used and confirm their calculation; (d) share the metrics with all investors at the same time; (e) assist investors in their assessment of the long-term value of CSR; and (f) assist investors in understanding management decisions. The term "underlying" is not defined in IFRS, and may therefore not be comparable with similarly titled measures reported by other companies. Underlying measures should not be considered in isolation from, as substitutes for, or as superior measures to, IFRS measures. A reconciliation of each underlying measure to the most comparable IFRS measure is provided as part of the Supplementary Information, from pages 31 and 32.

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