CSR says markets tough

Source: Reuters

Date :10/29/2008 5:43:09 AM

Bluetooth specialist CSR reported revenue of $205.5 million (128.4 million pounds) for the third quarter, towards the low end of expectations, and said the difficult economic environment was impacting its end-market.

The company, which makes chips and devices using wireless-link bluetooth, said its gross margin was steady at 44.5 percent, while adjusted pretax profit was $30.8 million, down from $57.6 million for the same period a year ago.

The market was expecting revenue of $207.5 million and adjusted pretax profit of $33.1 million, according to a consensus of nine analysts compiled by Reuters.

CSR said the current macroeconomic environment was affecting end-customers and, reflecting the slowdown, it now expected fourth quarter revenue to be in the $140-160 million range. A Reuters-compiled analyst consensus had fourth quarter revenue at $190 million.

"The current macroeconomic environment and resulting uncertainty are inevitably affecting end-consumers and will negatively impact our addressable market," the company said in a statement.

"Whilst visibility is limited, we currently expect the downturn to extend well in 2009 and potentially beyond."

(Reporting by Paul Sandle; Editing by Mike Nesbit)

LONDON (Reuters)