Wolfson Microelectonics ([url=https://www.proactiveinvestors.co.uk/chart.asp?WLF new=true]LSE: WLF[/url]) fell 23% after announcing that its product had not been selected for inclusion in the next generation of a portable media player by 'a major Tier 1 customer'. The name of the customer was not disclosed, but market gossip is pointing the finger at Apple, which is a major client of Wolfson.
Wolfson was keen to point out that is still had a strong relationship with the customer as a product supplier for other high growth product areas and portable media players represented only 14% of group revenues.
"With particularly good performance in handsets, digital still cameras, gaming, headsets, GPS and automotive...this is evidence of the ongoing broadening and balancing of the Wolfson portfolio of technologies, customers and applications so as to diversify the revenue base." the company said.
Yet investors still worried about the long term impact of the news, despite Wolfson maintaining its guidance for the second half of 2008 and confirmed it still expected to post first quarter revenues of US$44-48 million.