Bluetooth specialist Cambridge Silicon
Radio (CSR) has made an encouraging start
to life as a listed company, reporting a
robust financial performance in the first
half of 2004 and a string of new contract
wins for clients such as Sony, Nokia and
Orange, following its successful IPO in
February.
CSR was SEP’s second portfolio company
to enjoy IPO success in less than six months
following a flotation by fabless semiconductor
company Wolfson Microelectronics in October.
SEP remains a shareholder in CSR, whose
single chip radio devices are used in a
wide range of Bluetooth applications from
phones to laptops and in-car communications
systems.
CSR reported a 60% rise in revenue to $58.9
million in the second quarter of the year,
with total revenues for the first half of
2004 totalling $95.7 million, compared with
$44.2 million for the second half of 2003.
Pre-tax profits stood at $21.8 million,
compared with $4.5 million over the second
half of last year. The company’s market
capitalisation at the end of June was around
£540 million.
CSR chief executive John Hodgson said:
“This is a strong set of results,
underpinned by the increasing adoption of
Bluetooth technology into mobile phones
and headsets. We are pleased that we continue
to hold the majority of design wins going
forward, and as the real potential of Bluetooth
begins to be realised, we look forward to
the future with confidence.”
SEP invested in CSR in September 2002,
leading a £15 million investment round
which was the company’s final injection
of private equity prior to IPO. CSR, which
was founded in 1999, had a market capitalisation
at launch of £240 million and its
shares have performed very well since flotation.
On the 23rd July, a secondary share placing
by Credit Suisse First Boston on behalf
of a number of shareholders, including Scottish
Equity Partners, went exceptionally well.
Approximately 13% of the company was sold,
raising £57.7 million.
