An Edinburgh computer chip manufacturer has reported a near 60 per cent increase in first quarter profits, boosted by some notable deals signed with leaders in the computer industry.
Wolfson Microelectronics, based in Westfield Road within view of Murrayfield, has also scored with its pre-tax losses in the same period.
In 2012, the microchip maker posted a loss of $8.4 million (£5.4 million). The first quarter losses for 2013 have been sliced by a quarter, falling to just $6.3 million (£4.04 million).
It is the firm’s 59 per cent sales increase that is the real headline though, which sees Wolfson’s revenue hit $48 million (£31million) from January to March.
Much of the recent success can be attributed to two main deals the company has signed with Chinese electric firm Lenovo, and Korean giant Samsung.
Talking about the new contracts, which will see HD audio microchips as well as other components used in the Asian firm’s tablets, phones and computers, chief executive Mike Hickey said:
“The growth momentum we built up last year has continued into the first quarter, with record first quarter sales up close to 60% year-on-year.”
Hickey also said that he was eager to build on the new growth, and boost cash flow further. His sentiments echo the thoughts of many business leaders in Scotland at the moment, many of whom are funding new growth with factoring, for example.
Working with an invoice finance broker can also open up new leads hitherto unexplored, while for his firm’s continued success, Hickey is encouraged that the new deals will provide a strong foundation to exploit Asia’s emerging markets.