Dialog Semiconductor Plc. / Final Results
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Company reports revenue in 2009 of $217.6 million, achieving 34.5% growth
Kirchheim/Teck, Germany, 11th February 2010 - Dialog Semiconductor plc
(FWB: DLG), a leading provider of Power Management Semiconductor solutions
today reports results for Q4 and the audited financial year ended 31st
Q4 and Financial Year 2009 Financial Highlights
- Revenue for Q4 2009 was $77.6 million, an increase of 31.4% over the
prior quarter and 49.5% on Q4 2008. For the financial year, revenue was
$217.6 million representing an increase of 34.5% over 2008.
- Cash, cash equivalents and restricted cash increased in Q4 2009 by
$76.8 million to stand at $123.1 million, an increase of $86.2 million
over the prior year period, including $59.7 million from an equity
offering in September 2009.
- Further improvement in net income in Q4 2009 with a net income of $19.9
million or 25.6% of revenue. For the financial year, net income was
$32.7 million or 15.0% of revenue, including the positive impact of a
$7.5 million deferred tax asset.
- For the financial year 2009, gross margin was 44.9%, representing an
increase of 6.2 percentage points year over year, including the benefit
of an exceptional cash settlement of $2.3 million in Q2 2009.
- Q4 2009 diluted and basic earnings per share of 31 cents and 34 cents
respectively. For the financial year 2009, diluted and basic earnings
per share of 60 cents and 67 cents respectively.
Q4 and Financial Year 2009 Operational Highlights
- Continued Power Management design wins within the smartphone market
segment, with 2009 seeing the ramp of high volume designs in several
industry leaders' products.
- Success within the emerging 3G Android smartphone segment with the
first design win announced in Q4 2009 with LG for China Mobile.
- Adoption of our 3G/HSPA Power Management technology in convergent
devices including ebooks and netbooks.
- Platform partnership announced with NEC Electronics(R) based on NEC
Emma Mobile(TM) processor and Dialog's Configurable Power Management
- Entrance in 2009 to the portable audio market with industry's lowest
- Strategic partnership with Intel(R) and first design wins in 2009 for
Power Management companion products for Atom(TM) processors.
- Increased demand from Automotive and Industrial segment during Q4 2009
- Winners of Global semiconductor association and Elektras's European
fabless company awards for 2009.
Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'2009 was a very successful year for Dialog where we led the industry and
continued to grow. We focused our efforts on solidifying our position as
the leading Power Management IC provider to the industry's leading
smartphone manufacturers, 3G/HSPA cellphones and portable media devices
while delivering strong revenue growth and improved profitability through
the economic downturn. We also reinforced our customer relationships and
strengthened our already robust balance sheet.
'As a leader in portable power management integrated technology, we are now
a highly credible partner worldwide for delivering and extending the
battery efficiency of portable devices. With our current design wins, and a
pipeline of innovative new products, leading to further design win
opportunities, we are very encouraged by our long-term growth prospects as
energy efficiency assumes an ever increasing importance in product design.'
Revenue in Q4 2009 was $77.6 million, a sequential increase of 31.4% on the
$59.1 million of revenue delivered in the Q3 2009 and an increase of 49.5%
over the $51.9 million in the comparative period last year. For the
financial year 2009, revenue was $217.6 million: an increase of 34.5% over
2008, where revenue was $161.8 million.
Gross margin in Q4 was 48.0%. This represents an increase of 5.9 percentage
points over the 42.1% in the comparative period last year, demonstrating
operational leverage from much higher volumes. For the financial year 2009,
the gross margin was 44.9% representing an increase of 6.2 percentage
points over the gross margin of 38.7% registered in 2008. Excluding the
effect of the $2.3 million cash settlement from the BenQ insolvency
received in Q2 2009, gross margin for 2009 would have been 44.4%.
The growth in revenue led to further improvement in our operating profit
during Q4 2009. Operating profit in Q4 2009 was $14.2 million or 18.3% of
total revenues compared to $9.6 million or 16.3% of total revenues in the
prior quarter. For the full year 2009, our operating profit grew by $22.7
million from $6.0 million in 2008 to $28.7 million in 2009, representing
13.2% of total revenue.
The net tax credit of $3.9 million for the year ended 31 December 2009
includes a one-off benefit of $7.5 million - or 14 cents per diluted share,
being the recognition of a proportion of the deferred tax assets
principally relating to carried forward losses. The current year taxable
profits also benefit from the utilisation of brought forward tax losses
leaving a residual minimum level tax charge mainly applying to taxable
profits in Germany. Going forward and on a quarterly basis, we will
consider whether it is appropriate to continue to recognise further
currently unrecognised deferred tax assets.
In Q4 2009, our ninth consecutive quarter of profitability, net income was
$19.9 million or 31 cents per diluted share (34 cents per basic share).
This compares to a net income level of $8.8 million or 18 cents per diluted
share (19 cents per basic share) delivered in the prior quarter and to a
net income of $4.6 million or 10 cents per share (basic and diluted) in the
fourth quarter of 2008. For the 2009 financial year, net income was $32.7
million or 60 cents per diluted share (67 cents per basic share), compared
to $6.8 million and earnings per share of 15 cents recorded in 2008 (basic
At 31 December 2009, we had a cash, restricted cash and cash equivalents
balance of $123.1 million, with no debt. This represents an increase of
$76.8 million over the cash and securities balance of the prior quarter and
$86.2 million for the financial year. Of this increase, $33.2 million was
generated from operations during the year and $59.7 million originates from
the Company's successful international equity offering which closed in
September 2009, where 12 million ordinary shares were issued at a price of
At the end of Q4 2009, our inventory was $26.2million, almost flat compared
to the prior quarter despite total revenues increasing by 34.5%. This
demonstrates our capacity to tightly manage our supply chain.
Our design win success with cellphone customers for Power Management
continued in 2009 as we expanded our customer base to now number more than
10: including major design wins in smartphones and 3G/HSPA enabled
cellphones. Additionally, our 3G/HSPA modem platform solution and power
management technology is also now being successfully adopted in ebook,
netbook and other convergent portable devices; markets which we believe
represent new growth areas for Dialog in the future.
Transition of our portfolio to a balance of standard and custom devices
also continued in 2009 where we launched new standard product families
which will provide us with a platform on which to accelerate further
diversification. These include programmable power management devices which
revolutionize the way analog designers can design and configure their
systems. Additionally, we have sampled with customers the first devices
from a family of new ultra low power audio products which are currently
under development, setting a new benchmark in the industry for lowest power
Our Smartxtend(TM) passive matrix OLED developments remain on track for
industry adoption within the portable device and cellphone markets. In
2009, we continued to develop the technology and, by the end of Q4 2009,
had sampled our first optimised product with our OLED module partners for
product development and evaluation. This technology delivers a strong
value proposition over traditional TFT LCD displays and competing active
matrix OLED technologies. Dialog also maintains its early leadership in
e-paper/e-ink display based products, winning designs during the year in
innovative portable applications.
We continue to execute on our strategy to strengthen technology leadership
and in February 2010 - post year end - we purchased complimentary power
management technology from Diodes Zetex GmbH. As part of this transaction,
Dialog has also acquired specific Diodes intellectual property rights and
an employee team located in Munich, Germany.
Automotive and Industrial Segment:
2009 was a difficult year for our Automotive and Industrial segment, with
the global economic crisis having a marked effect on the automotive
industry, affecting sharply our automotive revenue early in the year.
However, some pick-up did begin to take place later in the year and our
shipments recovered to near historical levels. This is a dynamic we see
continuing into 2010.
The transition to increasing use of energy saving lighting, including LEDs,
is also providing an opportunity for Dialog to further build on its
existing lighting business for the future. To capitalize on this
opportunity, during 2009 we announced a joint development centre in Austria
with TridonicAtco - a leader in lighting.
Additionally, to support the increasingly popular Intel(R) Atom(TM)
processors, we provide very high integrated power management and clocking
companion devices for Automotive Infotainment and Embedded Industrial
processor applications. During 2009, we shipped the first samples and
announced a strategic partnership with Harman Becker who will use our
products in their automotive infotainment systems.
The first quarter of 2010 has started strongly across all of Dialog's
business areas and, for the full year, we expect our revenue profile will
broadly follow the consumer seasonal trends we have seen in prior years.
Industry analysts predict that the semiconductor market will grow in 2010,
with the rate of growth dependent upon how quickly consumer confidence and
the broader macro-economic environment recover: something which is still
unclear. Overall, despite this market uncertainty, we remain confident in
our ability to grow our revenue faster than the market in the year ahead
and to deliver a successful result for 2010.
- // -
Dialog Semiconductor invites you today at 10:00 CET/ 09:00 UK to listen in
a live conference call to managements discussion of Q4 2009 and full year
2009 performance. To access the call, please use the following dial-in
numbers: Germany +49 (0) 6103-485-3002, UK +44-207-153-2027, USA
+1-480-629-9726, with no access code required. An instant replay facility
will be available for 30 days after the call and can be accessed at
+49-6958-999-0568 with access code 142537#. An audio replay of the
conference call will also be posted soon thereafter on the company's
Additional information to this adhoc release including the company's
consolidated income statement, consolidated balance sheet, consolidated
statements of cash flows and selected notes for the period ending 31
December 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 Matt Dixon Claudine Schaetzle
D-73230 Kirchheim/Teck T +44 20 7269 7214 T +49 69 920 37 185
Germany email@example.com firstname.lastname@example.org
Information about Dialog Semiconductor:
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
With its 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 motor control. Dialog's
processor companion chips enhance 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 2009, it had $218 million in
revenue and was one of the fastest growing European public semiconductor
companies. It currently has approximately 340 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 supersede any
11.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Company: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
Phone: +49 7021 805-412
Fax: +49 7021 805-200
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service