Dialog Semiconductor Plc. / Quarter Results
06.05.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Kirchheim/Teck, Germany, 6 May 2008 Dialog Semiconductor plc (FWB: DLG),
a leading provider of power management semiconductor solutions announces
its results for the first quarter of 2008.
OVERVIEW
Momentum maintained with break even Q1
- Q1 2008 revenues stand at US$31.5m up 132% on Q1 2007 (Q1 2007:
US$13.6m) resulting in net profit of US$68,000 (Q1 2007: US$8.1m net
loss)
- Q1 2008 gross margin stands at 33.5% in traditionally quietest trading
period
- New customer opportunities position Dialog for significant revenue
growth in H2 2008
- Liquid asset balances stood at US$28.6m at end of Q1 2008 (Q4 2007:
US$35.8m) and Dialog remains debt free
---------------------------------------------------------------------------
Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli,
said:
'It is a significant achievement for us to have delivered a breakeven Q1,
given this is seasonally the quietest period in our business, and this
achievement further validates the investments we have made in our new
products and business platform. Whilst general economic conditions remain
uncertain, we continue to be confident that we will deliver substantial
growth in the second half of 2008 and that at this early stage we remain on
track to meet our expectations for the full year.'
OPERATIONAL HIGHLIGHTS
FY 2007 saw Dialog invest heavily in building a newer, more efficient
platform for future growth. The benefits of that platform have already
begun to flow through in FY 2008 to our bottom line, as evidenced by our
breakeven this quarter. We continue to fine tune our platform and make
best use of our fabless operation model and in this period we further
improved our efficiency by completing our move to a worldwide customer
drop-ship delivery model direct from our manufacturing sub-contractors in
the Far East. This supply chain model will further reduce our delivery
cycle time to customers and offer a much enhanced service compared to our
previous European-based logistics operation.
In our Wireless segment, we continued this quarter to increase our number
of design wins in this segment through the use of our 3G/HSDPA integrated
audio and power management chips. This traction with major customers in
Asia we anticipate should lead to the recognition of new revenue in H2
2008. We have also completed during the period our preparation for the
volume ramp into production of a new product for a new, Tier 1 brand smart
phone customer. We expect this ramp to occur during Q2 2008.
Our Automotive and Industrial segment performed strongly in Q1 and we have
seen a healthy flow of opportunities in smart system on chip (S-O-C)
applications in intelligent motor control and sensing. In addition, Dialog
continues to focus on developing technology appropriate for engagements in
the next generation of infotainment products; leveraging its strong
position in core power management and audio technology. In the case of
audio technology, Dialog has made excellent progress this quarter in the
development of advanced audio technology offerings. Through these
offerings we are currently targeting the introduction of new world class
products in FY 2009.
In the Consumer arena, Dialog remains focused on developing further
products for consumer applications and we anticipate shipment of such
products to commence in H2 2008. This combination of new design wins,
combined with further business wins secured this quarter from within our
existing wireless customer base allows us to remain confident in the growth
prospect for this area of our business.
Looking ahead, Dialog continues to invest in the development of new, highly
differentiated products for new and emerging always-on, low-power display
technologies. In Q1 2007, Dialog began promoting its optimised low drivers
for Passive Matrix OLED technology to customers and anticipates that the
first products will begin sampling in Q3 2008. As previously guided, our
portfolio of display products including e-paper and MEMS based display
drivers should start contributing revenue in 2008.
FINANCIAL PERFORMANCE
Q1 2008 revenue stands at US$31.5m: some 132% higher than Q1 2007 and 8.8%
lower than Q4 2007, in line with the typical and expected seasonality
levels associated with our business. Even though this quarter is
traditionally our quietest period, we have moved further along with our
turnaround strategy and delivered a Q1 2008 net profit of US$68,000: a
significant achievement.
As expected and as is typical at this stage in our Financial Year, our Q1
2008 revenue contains proportionally less consumer and cell phone product
revenue relative to Q4 2007. As a result our gross margins have reduced in
Q1 from their particularly high level in Q4 2007 (Q4 2007: 41.5%).
However, with gross margin for the quarter standing at 33.5%, we continue
to operate within the average gross margin range of 33.0% recorded for FY
07 and are working to deliver greater gross margin improvements.
Dialogs cash and securities balance decreased to US$28.6m in Q1 2008 from
US$35.8m at the year end. This decrease was primarily a timing effect
driven by an increase in Trade Receivables close to the end of the period
and should be viewed against the backdrop of a particularly low balance as
at the end of the 2007 financial year.
OUTLOOK
We are pleased to have delivered a breakeven Q1 2008 in what is typically
the quietest period for our business. We believe this achievement further
validates the investments we have made in our new products and business
platform during the previous financial year.
Whilst general economic conditions remain uncertain, we continue to be
confident that we will deliver substantial growth in the second half of
2008 and that, at this early stage, we remain on track to meet our
expectations for the full year.
The Companys un-audited financial statements for the period ending 28
March 2008 which are available at www.dialog-semiconductor.com have been
prepared in accordance with International Financial Reporting Standards
(IFRS) and filed within the Exchange Reporting System of Deutsche Börse.
Companys un-audited financial statements for the period ending 28 March
2008 which are available at
www.dialog-semiconductor.com.dialog-semiconductor.com have been prepared in
accordance with International Financial Reporting Standards (IFRS) and
filed within the Exchange Reporting System of Deutsche Börse.
Information about Dialog Semiconductor
Dialog Semiconductor develops and supplies power management, audio and
display driver technology, targeting the wireless and automotive and
industrial segments. The companys expertise in mixed signal design, with
products manufactured entirely in CMOS technology, enhances the performance
and features of wireless, hand-held and portable electronic products. Its
technology is also used in intelligent control circuits in automotive and
industrial applications. Dialog Semiconductor plc is headquartered near
Stuttgart, Germany with operating facilities in the UK, the USA, Austria,
Japan and Taiwan. The company is listed on the Frankfurt (FWB: DLG) stock
exchange.
Forward Looking Statements
This press release contains 'forward-looking statements' that reflect
managements 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 Semiconductors 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.
Für weitere Informationen:
Dialog Semiconductor
Neue Strasse 95
D-73230 Kirchheim
Deutschland
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
FD-London
Matt Dixon
T +44-7703-330-913
matt.dixon@fd.com
A&B FD - Frankfurt
Claudine Schaetzle
T +49-69-920-37185
c.schaetzle@fd.de
DGAP 06.05.2008
---------------------------------------------------------------------------
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
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: Dialog Semiconductor reports results for the first quarter 2008
| Source: EQS Group AG