Shares digital

Last week's shock profit warning drove the shares of CSR (CSR) down by 24% to a three-year low of 324p. The silicon chip designer blamed market share loss at a key client and weaker than expected demand from China for a revenue shortfall in the first half of 2008.

Despite the short-term disappointment, CSR is sticking to its goal of $2 billion in revenues by 2012, against the $848.6 million achieved last year. Management plans to supplement a strong position in mobile phones with revenues from new areas such as such as global positioning systems (GPS) and WiFi.

CSR also announced the departure of long-standing chief financial officer Paul Goodridge, who will depart at the end of May and be replaced by Will Gardiner, currently director of finance, technology and enterprise at BSkyB (BSY).

Shares says: Looks cheap but earnings forecasts could still be too optimistic.

by: Russ Mould