Bosses at Edinburgh microchip firm Wolfson have admitted “disappointment” over flat revenues during what had been expected to prove a year of strong growth.
Chief executive Mike Hickey revealed losses doubled to more than $20 million during 2013, despite reducing overheads, an increase in sales of core products and Wolfson’s “strongest ever” position with major electronics firm Samsung.
He blamed consumers’ faster-than-anticipated take-up of nascent 4G mobile technology while the Murrayfield-based company had continued to concentrate efforts on its 3G predecessor.
“Overall, looking back on a year where we anticipated strong growth, we were disappointed with full year revenue that ended flat year-on-year, with strong sales in the first half being offset by a weaker second half performance,” Mr Hickey said.
Year-end revenues of $179.4m marked a marginal decline on the same time last year, with pre-tax losses more than doubling from $9.3m in 2012 to $20.3m last year.
Plans to cut around 50 jobs have already been outlined by the firm, which has a total staff roll of around 500 with efforts to reduce costs by 10% expected to be completed by the end of March.
But the company also hopes to capitalise on better margins from greater take-up of audio hubs as new 4G products come to market later this year, and as its “addressable market” continues to increase.