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Wolfson in return to the high-score charts

Wolfson chief Mike Hickey.
Wolfson chief Mike Hickey.

Edinburgh microchip firm Wolfson revealed a return to the high-score charts after posting a 59% increase in first-quarter revenues.

The firm which has picked up new orders from a string of smartphone, tablet and computer gaming manufacturers, including Samsung and Chinese giant Lenovo said its income of $48.1 million was up significantly on the $30.3m total posted during the first three months of last year.

That helped the firm reduce losses to $6.3m in the period, down from $8.4m the previous year.

And Wolfson said it expected to see quarter two sales of between $44m and $54m and increase of between 33% and 44% depending on the timing of client product launches, with a further “step up” during the second half.

Audio hubs formed 85% of Q1 revenues, while sales of microphone components also grew ahead of a strong year in prospect.

Gross margins are also expected to improve, thanks to what the company described as a “more favourable product mix”.

Chief executive Mike Hickey said Wolfson was “well-positioned”, but the result was not as encouraging as investors had hoped.

N+1 Singer analysts Pia Tapley and Tintin Stormont said second quarter forecasts were “slightly light” against expectations.