Dialog Semiconductor Plc. / Quarter Results
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Company reports revenue in second quarter of $45.0 million, achieving 25%
growth over the first quarter of 2009
Kirchheim/Teck, Germany, 28th July 2009 - Dialog Semiconductor plc (FWB:
DLG), a leading provider of high integrated innovative Power Management
Semiconductor solutions, today reports results for its second quarter
ending 26th June 2009.
Q2 2009 Financial Highlights
- Revenue for Q2 2009 was $45 million, an increase of 25% over the prior
quarter and 31% over the corresponding quarter of 2008
- Net profit in Q2 2009 of $3.3 million or 7.3% of revenue compared to
$0.8 million in prior quarter, our seventh successive quarter of
- Diluted earnings per share of 7 cents in the quarter
- Total cash increased in Q2 2009 over prior quarter by $2.7 million to
stand at $43.5 million. Dialog remains debt free with credit lines
- Received and recorded $2.3 million BenQ payment settlement, benefiting
income statement and balance sheet (as explained in Financial Overview)
Q2 2009 Operational Highlights
- Continued design win success in the smartphone market, now shipping to
three top tier smartphone manufacturers
- Samsung's launch of their Alias 2 cellphone using Dialog e-ink display
- Revenue diversification, with one of the top 5 cellphone manufacturers
emerging as a new 10% customer for our advanced 3G/HSPA platform IC
- Successful launch of a new Power Management IC as a companion device
for Intel(R) Atom(TM) series of processors
Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'We had a strong second quarter with growth in revenue, gross margins and
net income. Through this industry downturn, Dialog has continued to make
great strides and is now emerging as one of the leading high performance
Mixed-Signal semiconductor companies, developing advanced and innovative
products that target high growth end markets.
We continue to be extremely encouraged by our design win successes, as we
add more top tier customers and believe these will drive continued growth
Revenue in Q2 2009 was $45.0 million, an increase of 25% over the $36.0
million in the prior quarter and increase of 31% on the $34.4 million of
revenue delivered in the corresponding quarter of 2008. This includes $2.0
million of revenues in relation to a net cash settlement of $2.3 million
which we received and recorded in the quarter. This cash settlement was
against receivables which had previously been written down and revenues
that had not been recognised in 2006 as a result of the insolvency of BenQ
Mobile. Excluding this, Q2 2009 revenue was $43.0 million.
Gross margin for the second quarter was 45.7%, positively impacted by 2.4
percentage points by the BenQ settlement. This represents an increase of
9.0 percentage points over that achieved in the prior quarter and an
increase of 10.3 percentage points over that achieved in Q2 2008. Excluding
the impact of $2.0 million of revenue relating to the cash settlement from
the BenQ insolvency, gross margin for Q2 2009 would have been 43.3%.
In Q2 2009, net profit was $3.3 million or 7 cents per diluted share, our
seventh consecutive quarter of profitability. This compares to a net profit
of $0.8 million or 2 cents per diluted share in the prior quarter and to a
net profit of $0.3 million or 1 cent per diluted share delivered in Q2
2008. Excluding the effect of the cash settlement from the BenQ insolvency,
net profit would have been $1.0 million or 2 cents per share.
At the end of Q2 2009, we had a cash, cash equivalents and restricted cash
balance of $43.5 million. This represents an increase of $2.7 million over
the cash and cash equivalents balance at the end of Q1 2009 and an increase
of $16.1 million over the cash, cash equivalents and securities balance at
the end of Q2 2008.
At the end of Q2 2009, our inventory level was $19.0 million, an increase
of $1.4 million over the prior quarter, in line with the increased seasonal
demand as we entered Q3-2009.
During Q2 2009, we continued to tightly manage our Operating Expenses
whilst investing in our sales and marketing organisation. We achieved an
SG&A rate of 15.5% and R&D rate of 22.4% of revenues. Excluding the effect
of onetime charges, SG&A and R&D, would have been 14% and 21% respectively.
Our success with smartphone products continues as we now ship to three top
tier manufacturers with leading smartphone offerings in the market.
Samsung also launched their Alias2 cellphone which includes our e-ink
driver technology in an innovative power saving keyboard implementation.
Adding Samsung as a new volume customer is an important milestone for
Dialog and a result of our recent focus on expanding our business in Asia.
We saw increased revenue contribution from our 3G/HSPA platform customers
as 3G technology continues to be aggressively promoted by the carriers
worldwide. In addition, one of the top 5 global cellphone manufacturers
emerged as a greater than 10 percent revenue contributor for Dialog in the
quarter for our 3G/HSPA solution.
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 and
module manufacturers on the tremendous value proposition that this
technology delivers over traditional TFT LCD displays and active matrix
OLED competing technologies.
AUTOMOTIVE & INDUSTRIAL
During the quarter we launched the DA6001 power management and clocking IC
as a companion device for the Intel (R) Atom(TM) processor. As the Atom
processor is becoming prevalent in many automotive infotainment, industrial
and the fast growing netbook markets, this represents an exciting new
opportunity for Dialog to expand its addressable market. Dialog developed
this device in collaboration with Intel and a global Tier 1 infotainment
customer and is the highest integrated solution available on the market.
We have also recently announced a joint development centre with
TridonicAtco in Austria, a leading industrial lighting manufacturer, to
jointly develop energy saving lighting and LED integrated circuits which we
see as an opportunity to capitalise on this emerging trend in the industry.
Our current products in the automotive and industrial segment continued to
be impacted by the global economic downturn in the quarter. However, we see
modest signs of recovery in our business going forward partially attributed
to the various government incentive packages encouraging consumer car
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, given our positive first half results, we now believe for
the financial year 2009, our revenue will be up by at least low double
digits on that recorded in the prior year. We expect to maintain
profitability for the year at least at a similar rate to that achieved in
Dialog Semiconductor invites you today at 10 am CET to listen in a live
conference call to management's discussion of Q2 2009 performance, as well
as guidance for financial 2009. To access the call please use the following
dial-in numbers: Germany: 0800 101 2072, UK: 0800 358 0886, US: 1 877 941
2930 with access code 4114032 required. An instant replay facility will be
available for 30 days after the call and can be accessed at +49 69 58 99 90
568 with access code 142062# (Germany). An audio replay of the conference
call will also be posted soon thereafter on the company's website at:
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 26th June 2009 is available
under the investor relations section of the Company's web site.
For further information please contact:
Dialog Semiconductor FD - London 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 firstname.lastname@example.org email@example.com
Note to editors:
Dialog Semiconductor creates energy-efficient, highly 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
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 300 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, however, any subsequent statement will supercede any
28.07.2009 Financial News transmitted by DGAP
Issuer: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
Phone: +49 7021 805-412
Fax: +49 7021 805-200
Indices: MIDCAP, PRIMEALL, TECHALLSHARE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
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