UPDATE 2-UK chipmaker CSR boosted by focus on bluetooth and GPS

Tue Oct 23, 2012 9:09am EDT

Related Topics

* Q3 operating profit of $32.2 mln

* CSR to return $285 mln to shareholders before year end

* Refocused on platforms such as bluetooth

* Shares up 2 pct

By Christine Murray and Paul Sandle

LONDON, Oct 23 (Reuters) - British chipmaker CSR Plc posted a 33 percent rise in quarterly operating profit, helped by sales of its bluetooth and GPS technology in music devices and car dashboards.

The Cambridge, eastern England-based company reported operating profit of $32.2 million in the third quarter on revenue up 16 percent at $282.7 million.

It recently refocused on Bluetooth and GPS platforms in areas like music and automotive with the $310 million sale of its mobile division to Korea's Samsung Electronics Co Ltd , which took a 4.9 percent stake in CSR.

Chief Executive Joep van Beurden said CSR's chips were selling strongly into music products, such as stereo headsets, and to automakers for GPS navigation and audio entertainment.

Its low-energy bluetooth chips were also in Nike+ trainers, he said.

"If you go for a run or for a workout or to the gym, your shoes will tell your phone ... how fast you're running, how high you jump, how many calories you burn," he said.

Shares in CSR were 1.8 percent higher at 345 pence by 1205 GMT, second on the mid-cap leaderboard.

Analysts at brokerage Numis said the results for the three months to Sept. 28, and the company's guidance for fourth-quarter revenue between $235 million and $255 million, were ahead of expectations.

They said the beat was down to higher-than-expected revenue from legacy products which continue to contribute to revenue.

"Core revenue was in line (with expectations) and there is operational progress in automotive and audio, which should drive about 10 percent growth in core 2013 financial-year estimates," the brokerage said.

Investors will get a special $285 million payout before the end of the year after the completion of the disposal to Samsung. Details of the tender offer to shareholders will be announced during the fourth quarter, the company said.

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