CSR plc unaudited results for the quarter ended 30 March 2007

Released: 02/05/2007

Strong results and cash flow, increased investment in R&D

CSR plc [LSE: CSR], the wireless solutions provider and the leader in Bluetooth technology, today announces its unaudited financial results for the quarter ended 30 March 2007.

Financial Highlights

• Revenue: $160.1m (Q1 2006: $134.9m)


• Gross margin: 45.1% (Q1 2006: 47.3%)


• R&D expenditure (excluding amortisation of acquired intangible assets): $33.2m (Q1 2006: $22.4m)


• SG&A expenditure (excluding the patent dispute settlement): $18.5m (Q1 2006: $16.5m)


• Underlying operating profit*: $20.4m (Q1 2006: $24.8m)


• Underlying operating margin*: 12.8% (Q1 2006: 18.4%)


• Underlying diluted earnings per share*: $0.11 (Q1 2006: $0.14)


• Operating profit: $3.9m (Q1 2006: $24.3m)


• Profit before tax: $4.6m (Q1 2006: $25.8m)


• Diluted earnings per share: $0.02 (Q1 2006: $0.14)


• Net cash inflow from operating activities: $57.7m (Q1 2006: outflow $9.0m)

Note*: Excluding the $15.0m patent dispute settlement and $1.5m amortisation of acquired intangible assets

First Quarter 2007 Operational Highlights

• Design win momentum strong across all applications


• Important Nokia and Samsung handset design wins in both GSM and CDMA


• BlueCore5 MM and BlueVox QFN (low cost headset) now in volume production


• GPS technology acquisitions: product offering well received by customers

Outlook

CSR has had a good start to the year with first quarter seasonality being less pronounced than in prior years.

Strong customer demand, supported by bookings, gives us the expectation of $195 million to $220 million of revenue in Q2 2007. With expectations of growing mobile phone attach rates and continued Bluetooth growth beyond the mobile phone market, CSR remains on track to meet its expectations for the full year.

Commenting on the results, John Scarisbrick, CEO said:

"CSR has made a good start to the year as we retain and build upon our position as the unequivocal Bluetooth market leader. Net operating cash flow remains very strong, inventory has returned to normal levels and we have increased our rate of investment in research and development to ensure we continue to capitalise on the growing market for wireless applications.

The outlook for 2007 remains positive. We expect mobile handset attach rates to grow to 40% – 50% this year. The market beyond the mobile phone, which now accounts for over 50% of our revenues, will continue to grow. This, together with our first quarter results and forward bookings to date, places CSR on track to meet its expectations for the full year".

Enquiries:

Investors

Media

Tom Buchanan/ Chris Blundell

Brunswick

+44 207 404 5959

A conference call for analysts and investors will be held at 08.00 UK time today. To access this call dial +44 (0) 1452 561 263, password: CSR. The call will be available later today for replay on +44 (0) 1452 55 00 00; Passcode: 7391066#.

A recording of the analyst and investor call will also be available on the investor relations pages of the CSR website (www.csr.com) for six months.

View the full results announcement in PDF format (184 KB).

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