CSR shares tumble after gloom on growth

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The Independent Online

CSR, the chip designer specialising in Bluetooth wireless technology, saw its shares fall 8.9 per cent yesterday after reining back expectations for the final quarter of this year.

CSR, the chip designer specialising in Bluetooth wireless technology, saw its shares fall 8.9 per cent yesterday after reining back expectations for the final quarter of this year.

In a third-quarter trading update the company said revenues increased by 32 per cent on the previous quarter to $77.7m (£42m) and by 344 per cent compared with the third quarter last year.

However, CSR warned that the fourth quarter would not see the same growth rates. The company said: "CSR continues to expect revenues for full-year 2004 in line with current consensus expectations. Following the strong growth in quarter three over quarter two, CSR expects single-digit per cent growth in revenue in quarter four over quarter three."

John Hodgson, the chief executive, said CSR was merely trying to cool expectations after an unusually busy third quarter. He said: "Quarter on quarter it is very difficult to predict. We made as much revenue in quarter three as we did in the whole of last year. We are in a very strong position as a company so I think we can look forward with enthusiasm. Our profit in quarter three was more than our revenue in the same quarter a year ago."

CSR was also hit by a statement from the German chip maker Infineon, where profits fell £70m below expectations. Mr Hodgson said he was confident there would continue to be growth in years to come. "There is no doubt in my mind whatsoever," he said.

The number of Bluetooth chips shipped this year is expected to total 145 million compared with 64 million last year. That is projected to rise to 250 million next year.

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