CSR posts first-quarter beat on wireless speaker demand
* Q1 revenue up 5 percent to $237.9 mln, beating forecasts
* Shares reach five-year high
LONDON May 8 (Reuters) - British chipmaker CSR said demand for its technology in wireless speaker systems used with smartphones helped first-quarter numbers beat market expectations, sending its shares to a five-year high.
The company, which specialises in Bluetooth wireless chips, posted a jump in underlying operating profit to $19.1 million, from $2.7 million for the same period a year ago, on 5 percent higher revenue of $237.9 million.
"There's a big trend towards wireless bluetooth wireless speakers," Chief Executive Joep van Beurden told Reuters, citing a 175 percent rise in the market in the United States last year.
"What we offer in that market is essentially a single chip wireless speaker, so it's the bluetooth radio and everything you need to create excellent audio."
Shares in the group rose more than 5 percent to a five-year high of 550 pence on Wednesday morning.
Analyst Lorne Daniel at FinnCap, who has a "buy" rating on the stock, said it was a strong set of results, with a 4 percent beat on the top line and a 6 percent beat on adjusted pretax profit, which came in a $17.7 million.
CSR said it expected revenue for the second quarter to be between $245 million and $265 million, guidance that Daniel said was slightly ahead of market forecasts.
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