Toshiba, Wolfson reach huge profits on iPod boom
Scottish technology firm Wolfson Microelectronics and Far East giant Toshiba have both revealed stellar results, boosted by Apple’s massive level of iPod sales.
Close to home, Wolfson today revealed its financial results for 2005, admitting that its revenues from its portable device business shot up by an astonishing 100 per cent – $108 million from $54 million in 2004.
Revenues rose 40 per cent to $166.6 million, up from $119.3 million last year. Pre-tax profits climbed 156 per cent year on year to $38.7 million, while gross margins now stand at a hugely impressive 50.2 per cent. Earnings per share increased to 24.95 cents (2004: 9.17 cents).
Wolfson CEO David Milne said: “Our strategy of developing advanced components for the rapidly expanding digital consumer electronics market has provided strong growth for us during 2005. We are delighted that many of the world’ s leading consumer electronic brands turned to Wolfson for high quality audio and imaging chips to differentiate and enhance the user experience of their products.
“With the continuing expansion of digital consumer market, Wolfson is confident of delivering further growth in 2006,” he said.
In the Far East, Toshiba has its own compelling story: its quarterly profits rose 14-fold, driven by strong sales of flash memory.
Toshiba expects its net profit to total 65 billion yen ($552.4 million) for the year to March, up from its previous target of 55 billion yen but missing the average estimate of 72 billion yen from 18 analysts polled by Reuters Estimates.