Shares digital

The shares in chip designer Wolfson Microelectronics (WLF) plunged 18% to 116p last week, after the Scottish firm admitted it has lost a key MP3 player design slot with an unnamed major customer, widely thought to be Apple (AAPL:NDQ). This is a three-year low for Wolfson’s stock, despite chief executive Dave Shrigley’s reassurances full-year earnings forecasts need not be changed, as business from headset and automotive customers is expected to compensate.

Shares says: A damaging blow but lowly valuation now looks to be pricing in hefty earnings downgrades. RM