Shares in microchip-maker CSR (CSR) soared to a six-year high as its shift from selling handset components to integrated systems continued to pay off, delivering underlying profit growth of 47 per cent. “The heart of our strategy is combining technologies into platforms,” chief executive Joep van Beurden told us - an approach he believes differentiates CSR and drives higher margins and market share.
It seems to be working so far, with revenues at the company’s voice and music division leaping 64 per cent year-on-year to $312m (£187m). Meawhile, sales of CSR's legacy handset products tumbled 35 per cent, and the company expects a further 65 per cent year-on-year decline this quarter as the business transformation continues. Revenues at CSR's consumer division also fell 30 per cent, largely due to declines in gaming and cameras. However, these losses could be offset if new products such as Bluetooth Smart and CSR Mesh - which connects multiple Bluetooth Smart-enabled devices to a mobile device or PC - gain traction.