Scottish firm Wolfson Microelectronics announced an annual profit of £6.7 million in its first results since the company went public last year.

The company – which was spun out of Edinburgh University – makes integrated circuits and chips for a variety of products, including Apple's iPod, Microsoft's Xbox and Palm's Treo 600. The company made £1.9 million in profit last year.

Highlights from the company's results report include: a 125 per cent increase in turnover to $75.7 million ($33.7 million in 2002). Research and development spend climbed to $9.4 million from $4.9 million.

Company CEO David Milne said: "I am delighted by the progress of our company in 2003. This is the second year in a row we have doubled our turnover. Our growth is driven by demand from a host of new digital consumer products that need the high performance mixed signal interfaces we supply.

"In 2004 we are continuing to see a healthy build-up of our first half order book and are excited by the interest customers are showing in our new products for multimedia mobile phones and digital cameras."

The company is growing. It increased its employee headcount by 59 last year and is investing in new facilities in Edinburgh and Swindon. It plans to introduce 25 new products this year.

The company's annual report reveals that it took a $700,000 hit last year in relation to previously reported legal action set against it by US firm Cirrus Logic. The latter company competes in the consumer audio market and claims that Wolfson infringed on two of its patents.

The report repeats Wolfson's belief that the Cirrus cases have no merit: the company has countersued Cirrus, alleging "patent invalidity and unenforceability, unfair competition and tortious interference in the US".

The company's stock currently stands at £3.05 per share.