CSR breaks $1bn mark for full year revenues
A 15 per cent increase in full year dividends, another $50m share buy-back, a $152m turnaround in pretax profits, its highest share price in two years and revenues surpassing $1 billion for the first time – things have gone very well for CSR in 2012.
The Bluetooth pioneer has reported record revenues of $1,025.4m (£673m) for 2012, up 21 per cent on the previous year and is comfortably the highest revenue earner in the Cambridge technology cluster with almost £100m (around 16 per cent) more than ARM, the next largest.
The big difference between these two is that ARM’s pretax profits in 2012 were £221m and CSR’s £66m, but considering that in 2011 CSR had made a pretax loss of £33m, it is showing very healthy improvement in this area and at noon CSR shares were up 41.2 pence to 426.60 pence a share, a 10.7 per cent increase.
The company is using its resurgence to increase shareholder value. Following a $50m share buyback at the beginning of last year and a $285m tender offer that followed the Samsung deal, CSR has announced another $50m buyback plan, all with the aim of increasing earnings per share.
Overall revenues were boosted by the full integration of Zoran, which it acquired for £300m in 2011 and which accounted for $301m (£198m) of its full year revenues. Without it, revenues would have fallen one per cent.
Since it offloaded its location and handsets business (the ‘legacy’ business) to Samsung for £200m, a deal that closed in Q4 of 2012, the company has focused on five core sectors, where it says it has its strongest market position and best margins. With no new products coming through, legacy income is falling, but according to CEO, Joep van Beurden, has greater resilience than expected and still accounts for 36 per cent of revenues while the core business is 64 per cent.
In the core business there were marked improvements in Voice and Music, but a fall in Consumer products if you discount the massive Zoran contribution. CSR says this drop is largely to do with a shift in consumer-led behaviour – people are using their smartphone cameras more and more at the expense of dedicated digital cameras.
Van Beurden said: 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.
First quarter revenues are expected to be in the range of $215m to $235m for 2013 (Q1 2012: $227m).