Dialog Semiconductor Plc. / Quarter Results
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Company reports revenue in first quarter of $36.0 million, achieving 14%
growth over the first quarter of 2008
Kirchheim/Teck, Germany, 28th April 2009 - Dialog Semiconductor plc (FWB:
DLG), a leading provider of Power Management Semiconductor solutions, today
reports its first quarter ending 27th March 2009 results.
Q1 2009 Financial Highlights
- Revenue for Q1 2009 was $36.0 million, an increase of 14% over the
corresponding quarter of 2008.
- Cash and cash equivalents increased in Q1 2009 over prior quarter by
$3.9 million to stand at $40.8 million. Dialog remains debt free with
credit lines untapped.
- Recorded sixth consecutive quarter of profitability with a net profit
in Q1 2009 of $0.8 million or 2.2% of revenue compared to $68,000 in
Q1 2008.
- Inventory levels further reduced in Q1 2009 by $2.4 million to $17.5
million.
Q1 2009 Operational Highlights
- Successful launch of our new Platform Power Management IC (DA9052) -
offering the Industry's highest level of integration and
configurability for a Power Management standard product.
- First volume shipments of our e-ink display driver technology to a Tier
1 Cellphone manufacturer.
- Continued ramp of our expanded base of six customers for our advanced
3G/HSPA integrated solutions, including adoption of the technology in
the emerging netbook market.
- Continued design win success in the Smartphone Market.
Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'Our performance in the first quarter exemplifies our commitment to our
strategy. Despite the current economic conditions, we have maintained the
positive momentum we created in 2008 with an impressive start to this year.
'We continue to execute on our strategy of market share expansion, customer
diversification and transition to a more balanced portfolio of standard
products. Additionally, we have created deeper relationships with our
customers and suppliers while continuing to lead with arguably the highest
integrated energy efficient power management products on the market today.'
FINANCIAL OVERVIEW
Revenue in Q1 2009 was $36.0 million, an increase of 14% over the $31.5
million in the first quarter of 2008 and a sequential decrease of 31% on
the $51.9 million of revenue delivered in the prior quarter. This first
quarter is typically the lowest quarter of our financial year due to the
seasonally lower consumer demand for our wireless segment products,
compounded further this year with the difficult global economic conditions.
However, despite these negative market conditions, we are extremely pleased
to have achieved such an increase in our sales above 2008's comparative
period.
In Q1 2009, net profit was $0.8 million or 2 cents per diluted share: our
sixth consecutive quarter of profitability. This compares to a net profit
of $68,000 or 0 cents per diluted share in Q1 2008 and to a net profit of
$4.6 million or 10 cents per diluted share delivered in Q4 2008.
Gross margin for the first quarter was 36.7%. This represents an increase
of 3.2 percentage points over the 33.5% achieved in the comparative period
last year and a decrease of 5.4 percentage points over the 42.1% achieved
in Q4 2008. Excluding the impact of Non Recurring Engineering (NRE) income
of $2.3 million recorded in the quarter, gross margin for Q1 2009 would
have been 39.2%.
At the end of Q1 2009, our inventory level was $17.5 million: a reduction
of $2.4 million over the prior quarter. This continued improvement further
demonstrates our ability to efficiently manage our supply chain.
At the end of Q1 2009, we had a cash and cash equivalents balance of $40.8
million. This represents an increase of $12.2 million over the cash and
cash equivalents balance at the end of Q1 2008 and an increase of $3.9
million over the prior quarter. During the quarter, we generated $5.0
million of cash from operations, compared to the cash outflow of $5.6
million recorded in Q1 2008. We are very encouraged by our continuing
ability to generate positive cash from our operations, especially in the
challenging first quarter of our financial year. We remain debt free and
our credit facilities remain untapped.
We continued to tightly manage our Operating Expenses in Q1 2009, ensuring
we remained profitable. We achieved competitive rates of SG&A at 11.8% and
R&D at 22.2% of revenues despite the seasonally lower trading quarter.
On April 17th 2009, we received notification of a net cash settlement of
approximately $2.2 million against a receivable which had previously been
written down in 2006 as a result of the insolvency of BenQ Mobile. This
will be accounted for in our Q2 2009 financial statements.
OPERATIONAL OVERVIEW
WIRELESS
During the first quarter of 2009, we continued to gain significant traction
in the market, particularly with some of the newly introduced products.
Within the wireless segment, we have launched a very high integrated
configurable platform power management IC, which is a novel approach and
addresses a wide range of portable media consumer and Smartphone
applications. We believe this will allow us to participate in new platforms
with the key application processor providers beyond our current
relationships.
Our business continues to be driven by the success of our growing range of
3G/HSPA integrated power management and audio products, and our customer
base now includes six Cellular customers. Additionally, we continue to see
the adoption of our solutions by leading Smartphone manufacturers in more
of their models. In the second half of 2009, we expect to see increased
revenue from these design wins as our customers advance in their product
launch and production ramp.
During the quarter, we began shipping in volume our e-ink driver technology
into a Tier 1 Cellphone manufacturer whose product will be introduced to
the market shortly. Our Smartxtend(TM) passive matrix OLED developments
remain
on track for production silicon at the end of this year. We continue to
engage positively in discussions with the Tier 1 Cellphone manufacturers on
the tremendous value proposition - greater than 30% power and cost
savings, that the SmartXtend(TM) technology delivers over traditional TFT
LCD
displays and active matrix OLED competing technologies.
AUTOMOTIVE & INDUSTRIAL
Despite the difficult global environment the current automotive industry is
experiencing, we continued to see demand for our power control and sensing
technologies in Q1 2009, driven by the growing trend for new electric and
hybrid technologies within the automotive industry. We have successfully
engaged with a Tier 1 supplier and existing customer in the development of
a new advanced sensor processing device which complements our existing
business and expect to see first samples in the second half of this year.
We will continue to launch new standard products which will expand and
complement the markets which we address with our power management
technology including in-vehicle infotainment and other embedded
applications. Within the industrial part of our business we continue to
engage in joint development of products with customers for energy saving
integrated circuits, supporting advanced fluorescent, high intensity and
LED lighting applications.
OUTLOOK
Due to the current economic conditions, we retain a cautious outlook on our
business for 2009 and continue to carefully manage operating expenses and
cash. However, with the positive start to the year in the first quarter, we
now believe in the first half of 2009 our revenue will be up on that
recorded in the first half of 2008. We maintain our previous outlook to
achieve year-on-year growth for 2009 and we expect to maintain
profitability for the year at a similar rate to that achieved in 2008.
Dialog Semiconductor invites you today at 09:30 GMT/ 10:30 CET to listen in
a live conference call to managements discussion of Q1 2009 performance, as
well as guidance for financial 2009. To access the call please use the
following dial-in numbers: Germany (free call): 0800 101 4960, UK: 01452
569 393, US: 1 866 434 1089 with no access code required. An instant replay
facility will be available for 30 days after the call and can be accessed
at 0800 101 3104 (Germany). An audio replay of the conference call will
also be posted soon thereafter on the company's website at:
http://www.diasemi.com/investor_relations.php
Additional information to this adhoc release including the company's
consolidated income statement, consolidated balance sheet and consolidated
statements of cash flows for the period ending 27th March 2009 is available
under the investor relations section of the Company's web site.
Note to editors:
Dialog Semiconductor creates energy-efficient, integrated, mixed-signal
circuits optimised for personal mobile, lighting & display and automotive
applications. The company provides flexible and dynamic support,
world-class innovation and the assurance of dealing with an established
business partner. Customers with a significant contribution to revenue
include Sony-Ericsson, Apple, Bosch and TridonicAtco.
With its unique focus and expertise in system power management, Dialog
brings decades of experience to the rapid development of integrated
circuits for power management, audio, display processing and control.
Dialog's processor companion chips are essential for enhancing both the
performance of hand-held products and the consumers' multimedia experience.
With world-class manufacturing partners, Dialog operates a fabless business
model.
Dialog Semiconductor plc is headquartered near Stuttgart with a global
sales, R&D and marketing organisation. In 2008, it had more than $160
million in revenue and was the fastest growing European public
semiconductor company, achieving a growth rate of more than 85%. It
currently has approximately 290 employees. The company is listed on the
Frankfurt (FWB: DLG) stock exchange.
Forward Looking Statements
This press release contains 'forward-looking statements' that reflect
management's current views with respect to future events. The words
'anticipate,' 'believe,' 'estimate, 'expect,' 'intend,' 'may,' 'plan,'
'project' and 'should' and similar expressions identify forward-looking
statements. Such statements are subject to risks and uncertainties,
including, but not limited to: an economic downturn in the semiconductor
and telecommunications markets; changes in currency exchange rates and
interest rates, the timing of customer orders and manufacturing lead times,
insufficient, excess or obsolete inventory, the impact of competing
products and their pricing, political risks in the countries in which we
operate or sale and supply constraints. If any of these or other risks and
uncertainties occur (some of which are described under the heading 'Risks
and their management' in Dialog Semiconductor's most recent Annual Report)
or if the assumptions underlying any of these statements prove incorrect,
then actual results may be materially different from those expressed or
implied by such statements. We do not intend or assume any obligation to
update any forward-looking statement, which speaks only as of the date on
which it is made.
For further information please contact:
Dialog Semiconductor FD - London A&B FD - Frankfurt
Neue Straße 95 Erwan Gouraud Claudine Schaetzle
D-73230 Kirchheim/Teck T +44 20 7831 3113 T +49 69 920 37 185
Germany erwan.gouraud@fd.com c.schaetzle@abfd.de
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
28.04.2009 Financial News transmitted by DGAP
Language: English
Issuer: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
Großbritannien
Phone: +49 7021 805-412
Fax: +49 7021 805-200
E-mail: birgit.hummel@diasemi.com
Internet: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Indices: MIDCAP, PRIMEALL, TECHALLSHARE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
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