CSR sees reduction in headcount

Performance for the quarter was in line with guidance - revenues were $205.5m up 9% over the second quarter. The company has also achieved gross margins of 44.5%, consistent with guidance and the prior quarter. However, the difficult economic environment is having an impact on customer end markets and as such the company expects to reduce combined R&D, sales, general and administration expense in 2009 by around $20m from 2008 levels. Reflecting the economic slowdown, the Company currently expects fourth quarter revenue to be in the $140m-$160m range. “In the short and potentially the medium term, we all recognise that the rapidly deteriorating global economic environment is clearly impacting demand for our customers’ products. We are therefore accelerating completion of the operational assessment we undertook earlier this year and we have identified significant further efficiencies we can secure alongside an expected reduction in headcount" states Joep van Beurden, CEO at CSR. He continues in saying: “We have a leading global market position, a strong balance sheet, a low fixed cost base, a world class R&D operation that is more focused and streamlined than ever before and a pipeline of new products that are very well attuned to what our customers want and which will lead the market when they start shipping next year. Coupled with our exclusive focus on the Connectivity Centre, notwithstanding the current economic environment, we fully expect to increase our market share of the global connectivity segment next year, while benefiting from our careful financial management.”