Share price in the Edinburgh technology firm, Wolfson Microelectronics (LSE:WLF), continued its ascent that began in November 2011 when it had traded at 96.00 pence. By noon today, 26 June 2012, shares continued climbing to 205.40 from yesterday’s close of 190.00.
Major Deal with Samsung Announced
Wolfson announced this morning that Samsung has been using Wolfson’s WM1811 ultra-low power HD Audio Hub for use in its new smartphone, the Galaxy S III. This is not Wolfson’s first alliance with Samsung. Samsung has previously included the WM8994 Audio Hub in its Wave and Galaxy S smartphones. The Galaxy S III hit the markets on 29 May 2012. Samsung anticipates sales of the Galaxy S III, which is comparable to the Apple iPhone, to exceed 10 million units in July. J.K. Shin, Chairman of Samsung, the world’s largest handset manufacturer said that the Galaxy S III will probably sell much faster than its predecessor models. Observers are now indicating that consensus estimates for Wolfson’s target share price for the year are as much as 60 pence too low.
Wolfson CEO, Mike Hickey:
“We are delighted that Samsung has once again demonstrated its confidence in our Audio Hub solutions, this time by incorporating the WM1811 into its flagship GALAXY S III smartphone, the launch of which will further strengthen Samsung’s position as a world leading smartphone manufacturer. Our continued success with Samsung, particularly within its range of smartphones and tablets, is testament to the unrivalled quality of our HD Audio Hubs, and the unique features in our products that allow manufacturers to create differentiated audio experiences.”
Lost in the Crowd?
Wolfson also released an announcement on 23 May that managed to slip under investor and analyst radar amongst other news, but which may bode just as fortuitously as today’s news. The company has introduced the first quad-core, high-definition, audio processor System-on-a-Chip (SoC). That’s not just Wolfson’s first SoC of this kind. It’s the first ever in the world. Wolfson expects the WM5110 to revolutionize the audio performance to smartphones, tablets, and portable multimedia devices. Duncan Macadie, a Product Line Manager, described the development, saying “The WM5110 HD Audio Processor provides ten times the processing capability of our previous generation of products. It caters for the needs of both OEMs and consumers, providing the best HD Audio performance on the market today, and enables the clear differentiation that OEMs need to stand out in the global marketplace at a competitive cost.”
Company Spotlight
Wolfson Microelectronics celebrated its 25th anniversary in 2010. It has more than 400 sales and engineering employees in twelve locations worldwide, including the US, Japan, China, Taiwan, Korea, Singapore, and India. The company’s approach is to “speak the language of design engineers,” which rewards its customers with product functionality that consistently meets or exceeds expectations. Its products are based on the company’s core competencies and capabilities to engineer and manufacture high performance and ultra-low power consumption products that differentiate it from its competitors.