CSR reports strong results

Core growth is driving increased profitability at CSR plc, which today reported fourth quarter and full year results for the period to 27 December 2013. The company proposed to increase its FY dividend by 15%, and plans to return up to $50 million to shareholders via a share buyback during the course of 2014.

Fourth Quarter Financial Summary

Underlying*


IFRS


Q4 2013

Q4 2012


Q4 2013

Q4 2012

Revenue

$208.2m

$249.2m


$208.2m

$249.2m

Core revenue**

$157.2m

$155.6m


$157.2m

$155.6m

Gross margin

52.8%

49.9%


51.9%

48.6%

Operating profit (loss)

$11.8m

$15.3m


($95.2m)

$117.5m

Profit (loss) for the period

$11.1m

$10.3m


($76.1m)

$64.7m

Diluted earnings (loss) per share

$0.06

$0.05


($0.47)

$0.32

Cash, cash equivalents and treasury deposits

$306.2m

$333.3m


$306.2m

$333.3m

 

Full Year Financial Summary

Underlying*


IFRS


2013

2012


2013

2012

Revenue

$960.7m

$1,025.4m


$960.7m

$1,025.4m

Core revenue**

$722.3m

$661.1m


$722.3m

$661.1m

Gross margin

52.4%

50.8%


51.6%

49.6%

Operating profit (loss)

$104.3m

$74.0m


($48.4m)

$107.9m

Profit (loss) for the period

$81.1m

$55.4m


($46.3m)

$51.2m

Diluted earnings (loss) per share

$0.46

$0.27


($0.28)

$0.25

Full year 2013 performance

o Revenue $960.7m (2012: $1,025.4m), Core revenue increase of 9.3% to $722.3m (2012: $661.1m),

o Underlying earnings per share $0.46 increase of 70% (2012: $0.27); IFRS loss per share $0.28 mainly due to Cameras impairment of $76.9m. (2012: earnings per share $0.25 reflecting recognition of profit of $127.2m on the transaction with Samsung).

 
Financial performance Q4 2013

o Revenue of $208.2m (Q4 2012: $249.2m) down 16% year-on-year, reflecting a 46% decline in Legacy revenues,

o Increased Core gross margin up 1.0 points to 60.2% (Q4 2012: 59.2%),

o Underlying operating profit of $11.8m (Q4 2012: $15.3m) primarily due to decline in Legacy revenue,

o IFRS operating loss of $95.2m mainly due to Cameras impairment (Q4 2012: operating profit of $117.5m, reflecting recognition of profit of $127.2m on the transaction with Samsung),

o Underlying diluted earnings per share increased to $0.06 (Q4 2012: $0.05),

o IFRS diluted loss per share of $0.47 mainly due to Cameras impairment, (Q4 2012: earnings per share of $0.32).



Momentum in platform strategy

o Accelerating design win momentum in Bluetooth Smart,

o Launched a new Bluetooth® Smart CSR1012™platform, which is optimised to help create low-power wearable accessories,

o Growing pipeline of automotive factory-fit design wins for Automotive Infotainment platform systems-on-a-chip (SoC).


Continued technical innovation

o In January 2014 at CES, launched VibeHub™ platform enabling multi-room networked home audio products via Wi-Fi® and Bluetooth,

o In February 2014, launched CSR Mesh which enables an almost unlimited number of Bluetooth Smart enabled devices to be networked together and controlled directly from a single smartphone, tablet or PC.


Dividend/buyback

o Propose final dividend of $0.091 per ordinary share (2012: $0.08), representing a dividend of $0.136 per ordinary share for the financial year (2012: $0.118), an increase of 15% on 2012 full year dividend,

o Intention to return up to $50m via buyback.


Joep van Beurden, Chief Executive Officer, said: "2013 has seen CSR deliver good Core growth, driven by a strong increase in Voice & Music revenue and a solid performance by Auto with growth starting in Bluetooth Smart, contributing to increased overall profitability and underlying earnings compared to 2012.

"We have ended the year with $306.2 million in cash, cash equivalents and treasury deposits after buybacks of $67.8 million. Given the strength of our financial position, our confidence in our future prospects and our focus on delivering returns to shareholders, the Board is recommending a final dividend of $0.091 per ordinary share, implying a full year increase of 15% year-on-year. In addition, we are proposing to return up to $50 million to shareholders via a share buyback during the course of 2014.

"Looking forward, we see good potential for our Core business. In Auto, we are experiencing strong design win momentum for automotive factory-fit infotainment platform SoCs. We continue to see good underlying growth in Voice & Music, after taking account of the non-recurring growth in China in the first half of 2013. Our market leading aptX® audio codec technology added 17 license agreements during Q4 2013 and is now being used for in-vehicle infotainment systems.

"We have a strong and growing pipeline of Tier One Bluetooth Smart design wins. We believe that Bluetooth Smart is emerging as a key technology for the Internet of Things (IoT) and have recently announced CSR Mesh, a disruptive new Bluetooth Smart technology which extends its use further into smart home and IoT applications."


OUTLOOK

We expect first quarter 2014 revenues to be in the range of $170 million to $190 million. We expect Legacy Products revenue in 2014 to decline by around 65% compared to 2013 revenue.

*Underlying results are based on International Financial Reporting Standards, adjusted for amortisation of intangibles, share option charges, integration & restructuring costs, release of litigation provision, litigation and patent settlements, fair value of contractual milestones, gain on disposal of development operations, goodwill and non-current asset impairment charges, other operating income, option premium for option on tender offer, the unwinding of discount on non underlying items, the deferred tax effect of change in UK tax rate, the tax effect of UK patent box, prior year adjustments and 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 26 to 28.

** Core comprises Auto, Voice & Music and Consumer.


For the full report see www.csr.com

____________________________________________________

 




Looking for something specific?