Slide 1: CSR plc First Quarter 2009 Results Presentation
CSR plc First Quarter 2009 Results Presentation 6 May, 2009
Slide 2: Disclaimer
Disclaimer 2 This communication contains “forward-looking statements” that represent the current expectations and beliefs of management of CSR plc (“CSR”) concerning the proposed merger of SiRF Technology Holdings, Inc. (“SiRF”) with SiRF Acquisition Sub, Inc. , a direct, wholly-owned subsidiary of
Slide 3: Agenda
Agenda 3 1. First Quarter 2009 Results and Outlook 2. Operational review and Update on SiRF transaction
Slide 4: First Quarter 2009 Financial Results
First Quarter 2009 Financial Results
Slide 5: Overview
Overview 5 • First quarter revenue towards upper end of guidance • Continued cash generation • Strong balance sheet with closing cash of $263m • Tight inventory control: reduced by $17m to $49m • Good operational progress • BC7000 firmly on track at lead customer and other Tier 1s • Promising custom
Slide 6: Financial Summary Q1 2009 Q4 2008
Financial Summary Q1 2009 Q4 2008 6 Revenue towards the upper end of guidance at $80.6 million for first quarter 2009 Gross margin of 41.1%, we expect this to recover through 2009 as volumes and product mix improve Tight cost control lead to first quarter 2009 underlying OPEX of $52.1m Underlying op
Slide 7: Outlook
Outlook
Slide 8: Outlook
Outlook 8 First signs that Handset destocking is coming to an end We anticipate an end to customer inventory destocking in headsets and consumer shortly Despite this, we are not in a position to “call the bottom” – overall demand picture remains uncertain Market share gains with several key customer
Slide 9: Handsets
Handsets
Slide 10: Handsets – Bluetooth
Handsets – Bluetooth 10 First quarter ahead of expectations, but at historically low level First quarter saw significant supply chain destocking This appears to have largely ceased Material gain in design-win market share We will start to see the effects of this in the second quarter Expect further
Slide 11: Handsets – Next Generation Products
Handsets – Next Generation Products 11 CSR9000 and UniFi6000 have been very positively received since launch: sampling with a large number of other potential customers First revenue from these products by the end of the year MusiCore is shipping in a Tier 1 handset at modest volume
Slide 12: Headsets, Automotive and Consumer
Headsets, Automotive and Consumer
Slide 13: Headsets
Headsets 13 Destocking is ongoing in the headset segment: excess inventory overhang is expected to clear shortly Market share remained strong during the quarter Won in excess of 80% of all qualified Bluetooth mono headsets Won 100% of all qualified stereo headsets designs Apple’s planned inclusion o
Slide 14: Automotive and Consumer
Automotive and Consumer 14 Weak consumer demand for all electronic non-cellular products PND market mirroring headset market in both demand and inventory Continued to gain a number of important design-wins including slot with a large US PND manufacturer Automotive volumes have held up well Higher at
Slide 15: SiRF Transaction Update
SiRF Transaction Update
Slide 16: Compelling Financial, Commercial and Strategic Rationale
Compelling Financial, Commercial and Strategic Rationale Strong Financial Case Strengthens and diversifies CSR Strengthens our leadership position in the Connectivity Centre 16 Diversifies revenue base, by customer, technology and market from day one Substantial combined cash (pro-forma $372 million
Slide 17: SiRF First Quarter 2009 summary financials
SiRF First Quarter 2009 summary financials SiRF Q109A SiRF Q108A 17 Revenue of $34.2m - towards the upper end of guidance First quarter cash balance of $110m Non-GAAP gross margin of 47.4% Non-GAAP operating expenses of $29.9m Non-GAAP net loss of $13.8m Second quarter revenue guidance of $42m to $4
Slide 18: Summary
Summary
Slide 19: Summary
Summary Strong balance sheet and enhanced revenue outlook Continued operational progress; Significant new product design-wins during the quarter On target to complete the SiRF merger by the end of the second quarter 19
Slide 20: Appendix
Appendix
Slide 21: Update on the Process to Completion
Update on the Process to Completion Expected date Event 21 25 Feb – 25 March Mid May May - June June HSR waiting period passed Circular to be sent to CSR shareholders and publication of the Prospectus F-4 registration statement sent to SiRF shareholders CSR and SiRF shareholder meetings to approve t
Slide 22: Disclaimer
Disclaimer 22 This communication contains “forward-looking statements” that represent the current expectations and beliefs of management of CSR plc (“CSR”) concerning the proposed merger of SiRF Technology Holdings, Inc. (“SiRF”) with SiRF Acquisition Sub, Inc. , a direct, wholly-owned subsidiary of