Loss of iPhone deal hits Wolfson Microelectronics

30 October 2009

30 October 2009 | Allie Anderson

A Scottish microchip supplier has reportedly blamed third quarter losses and a drop in fourth quarter orders on the loss of a contract with Apple.

Edinburgh-based Wolfson Microelectronics makes microchips for mobile phones, computer games and TVs. The company, which trades internationally and gives its figures in dollars, announced yesterday it had made a pre-tax loss of $1.5 million (£916,350) in the three months to 4 October. Projected fourth quarter sales had fallen 13 per cent from $26 million (£15.88 million) in the third quarter to $22.5 million (£13.75 million). The firm had made microchips for the earlier versions of the Apple iPhone but lost out on the contract to supply audio chips for the newer 3GS version in the summer. Speaking to the Daily Telegraph, Wolfson's CEO Mike Hickey said: "One of our biggest customers [Apple] is selling more of the new product that doesn't have our chip than the older one that does have it, and the sales of the new version have been much quicker than we anticipated." "Current trading remains challenging as the full impact of previously announced design losses works through," he added in a statement. "We are confident of the material positive effect that our new product design wins will have on revenues as we progress through 2010."

SMoct2009

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