CSR reports strong Q307 growth; launches cheap internet radio chip
Wireless and Bluetooth chip designers CSR plc (CSR.L), one of the stars in the Cambridge High Tech Cluster, reported that its revenues grew 12% year on year to $240.1m in the third quarter of 2007 and was bullish on the medium term outlook.
Recently installed CEO Joep van Beurden (pictured) said: “For Q4 2007, we expect strong handset shipments and continued growth in markets beyond the handset.
“Revenues for Q4 2007 are expected to be slightly below Q3 2007 as a result of the usual quieter seasonal period towards the end of the quarter and in the range of $220m to $240m, an increase of 27% to 39% over the equivalent period in 2006”.
CSR has traditionally struggled to convince the stock market that the seasonal downturn is just that: seasonal. But maybe not this time around. Its share price was up 7% to 632p in early trading. CSR is now valued at around £835m.
The Group also launched RadioPro, a WiFi internet radio design based on its UniFi single-chip WiFi technology. It provides wireless streaming of internet radio via WiFi, without the need for a PC and can support over 10,000 radio stations through a dedicated internet radio portal. With a bill of materials of less than $15, CSR's RadioPro is the lowest cost internet radio solution available, and comes with the advantage of being software upgradeable. It is already in use by a number of lead customers and radios using it will in shops in time for Christmas.
Internet radio products have so far come with a hefty price tag of $200. With CSR’s chip design coming in at under $15, there is the potential for ODMs to slash the price of internet radio products.
RadioPro is based on two low power chips from CSR: UniFi, CSR's single-chip WiFi solution and the Multimedia Application Processor, an integrated chip with a RISC processor, a DSP and a stereo codec. The low power design of RadioPro boasts up to 25 hours of active streaming time running on a 1500mAH battery, enabling truly portable internet radio products.
On general prospectes for future growth, the company said there was a significant increase in demand for wireless products.
CSR's “total addressable market” for products requiring connectivity integrated chips is estimated to be over 5 billion units a year by 2010 and ranges from mobile phones to digital televisions.
CSR has strong Bluetooth market share in the higher volume mobile phone and headset segments. Legislation for use of hands free devices such as headsets is continuing with, for example, it being illegal from July 2008 to drive in California while holding a mobile phone.
Bluetooth is increasingly being incorporated into new build cars. New applications are being developed such as incorporation in HiFi systems and toys, as well as internet radio.
Future generations such as Bluetooth 3.0 will drive Bluetooth's adoption into other areas, the company believes.
7th November 2007
