Page last updated at 12:08 GMT, Tuesday, 28 July 2009 13:08 UK

Loss of 6.8m for microchip firm

Xbox 360
Wolfson Microelectronics chips are in some games consoles

Wolfson Microelelectronics has announced losses of £6.8m in the first half of this year.

Sales for the same period fell 42% to £58.4m which the company said was down to adverse conditions in the consumer electronics market.

The Edinburgh-based firm, which makes microchips for mobiles, TVs and gaming consoles, said it would be well placed when there was an economic recovery.

Nokia has signed a deal to use Wolfson technology in its latest headset.

But the chief executive of Microelectronics, Mike Hickey, said it was uncertain when demand would pick up.

'New products'

He said: "Whilst end market demand visibility remains poor and ordering patterns 'choppy' we have refreshed our product portfolio with exciting new products."

Wolfson's fortunes have improved as the year has progressed.

Sales in the second quarter of the year grew 32% compared with the first quarter and losses have narrowed in the same period.

The Asian market accounted for 75% of the company's revenue in the first half and business with South Korea held up well.

Earlier this year, the Financial Services Authority fined Wolfson £140,000 for failing to tell the market it had lost the iPod contract.

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