July 31, 2012 / 9:48 AM / in 5 years

UPDATE 1-Wolfson Micro eyes second half return to profit

* Q2 revenue up 5 pct to $40.3 mln

* Says seeing strong momentum in smartphones

LONDON, July 31 (Reuters) - Wolfson Microelectronics , the British chipmaker whose audio technology is in Samsung’s Galaxy S3 smartphone, said it expected to return to profitability in the second half as more handsets using its chips launch.

The company, which makes audio processors, reported an underlying operating loss of $1.3 million in the second quarter, an improvement on the $2.9 million loss in the same period a year ago.

Revenue rose 5 percent year on year to $40.3 million, it said on Tuesday.

Chief executive Mike Hickey said the group was building strong momentum as more and more companies selected its chips, including Blackberry maker Research in Motion and Sony .

He said the popularity of smartphones, where the company is growing its market share, was helping offset weaker consumer demand for other electronic products.

“Mobile phone revenues were up 30 percent year-on-year, and represented over 50 percent of our revenue in the first half, up form around 35 percent in same period last year,” he told reporters on Tuesday.

The Edinburgh-based company said third-quarter revenue would be the range $46 million to $54 million, and it was on track to meet analysts’ expectations for full-year revenue of $176 million.

Its shares were 0.5 percent lower at 205 pence by 0940 GMT.

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