UK chipmaker, Wolfson Microelectronics, has announced a 37 per cent fall in third quarter profits with global customers scaling back orders to well below seasonal expectations.
The Edinburgh-based firm, which supplies chips used in Apple’s iPod and iPhone, said that annual sales would be at the lower end of forecasts with full year revenue estimated to be between $196m (£125m) and $206m (£132m) compared to the average market forecast of $207m.
Wolfson continues to be affected by economic uncertainty and expects fourth quarter revenue of between $35m (£22m) and $45m (£28m). Overall, the group has underperformed the FTSE All Share technology, hardware and equipment index by over a quarter in the last three months.
In response to these results, Wolfson said it would reduce annual costs by around £4m to reduce the impact on margins.
Dave Shrigley, chief executive officer of Wolfson, is confident that the company is in a strong position to return to growth when market conditions improve.