Scotland business

Wolfson Microelectronics loses out in tech race

Lenovo phone Image copyright Other
Image caption Wolfson counts Lenovo among its customers

Audio chip maker Wolfson Microelectronics has announced growing losses for 2013 after losing out to a competitor.

The Edinburgh firm made an underlying loss for the year of $12.6m (£7.7m) compared with $2.9m (£1.8m) in 2012.

Revenues for the year were flat at $179m (£108m).

The company said it was disappointed with the results and a strong start to the year was offset by a weaker second half performance.

Chief Executive Mike Hickey said: "This was caused by a faster-than-anticipated transition from 3G to 4G (LTE) smartphones, which benefited a competitor."

He added: "We expect to resume our growth trajectory in the second half of 2014 as customer phone inventories unwind; customers' new products launch with Wolfson's next generation, higher content Audio Hubs."

"We have secured a $25m bank facility to support this anticipated growth."

Wolfson employs about 500 staff across a dozen locations worldwide, including 280 at its Edinburgh headquarters. The overall headcount includes about 50 contractors.

During 2013, it said it was cutting 10% of its workforce.

Wolfson, which counts Samsung, Smart and Lenovo among its customers, said it planned to reduce its overhead costs by $10m (£6.2m) a year, effective from the first quarter of 2014.

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites