Double-digit sales declines across all four divisions at CSR point to a brutal six months for the microchip maker. These partly reflect its transition towards selling integrated systems rather than handset components, which helped boost its gross margin by 5 percentage points to a record 56.2 per cent. Even so, underlying operating profit fell by almost a third to $41m (£24m).
Sales at CSR's voice and music, automotive and consumer segments slumped 10, 12 and 18 per cent, respectively, dragging its core revenues down 13 per cent to $328m. The company blamed weak demand for digital cameras and gaming, fierce Chinese competition in the automotive aftermarket, and last year's sales boost caused by a new Chinese law requiring drivers to use hands-free equipment to make phone calls. Revenues also fell 63 per cent at CSR's legacy segment, which it no longer invests in.