Wireless chip specialist CSR saw its shares slide throughout a difficult 2011, not least because of the unpopular acquisition of US chip designer, Zoran, as part of a strategic reshuffle.
Investors had baulked at the hefty price tag for the loss-making business, which was reduced after it released a profit warning during the takeover process. Indeed, Zoran lost a further $4.7m (£2.96m) in its first period under CSR's ownership, dragging the overall group business to a fourth-quarter pre-tax loss. But management remains confident that the deal enhances its ability to develop platforms for end-markets in which it has the scale to compete profitably – including automotive, imaging, location and audio, which enjoyed a particularly strong fourth quarter as customers, including Sony and Nokia, launched new products. Platform revenues now account for 56 per cent of revenues, up from 36 per cent a year earlier, which helped lift gross margins to a record 51 per cent.