Wolfson whistles on way to bank

SCOTTISH chip company, Wolfson Microelectronics, has recorded a dramatic increase in its Q2 2006 results. It says that demand for its audio chips from makers of MP3 players and music phones contributed to a doubling in profits.

The company supplies digital to audio components such as codecs and digital amplifiers to most of the leading vendors. Pre-tax profits rose to $11.5 million (£6.23 million) for Q2 2006 compared to Q2 2005's $5.76 million (£3.1 million).

Wolfson's major triumph was to get inside the Apple iPOD, although the company doesn't explicitly name its customers. An FT report, however, estimates that some 20 per cent of its revenues are derived from sales to Apple.

Out of the Top Ten mobile phone manufacturers, Wolfson claims to supply five of them. It doesn't say whether that includes Sony Ericsson, however.

"Everyone on the planet wants to put their chips into mobile phones," commented Wolfson CEO, David Milne. "Volumes are high and there is pressure on margins."

Milne is confident that, whatever the economic outlook, there will continue to be strong demand for his company's products. "People still have Christmas and birthdays- they still want iPODs and phones." µ

L'INQ
Wolfson