Dialog Semiconductor Plc. / Quarter Results
21.10.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Kirchheim/Teck, Germany, 21 October 2008 Dialog Semiconductor plc (FWB:
DLG), a leading provider of Power Management Semiconductor solutions
announces its results for the third quarter of 2008.
THIRD QUARTER 2008 HIGHLIGHTS
Financial Highlights:
Strong cash generation from operations with continued revenue growth and
profitability:
- Revenue for the third quarter was $44.0 million, an increase of 28.0%
on the prior quarter and 78.0% on Q3 2007
- Cash, cash equivalents and securities increased in Q3 2008 by $4.0
million to $31.4 million. Dialog is debt free with unused credit
facilities.
- Further improvement in net profitability with net profit of $1.9
million (4.3% of sales): our fourth consecutive profitable quarter
- Quarterly gross margin increased to 40.9%, representing an increase of
5.5 percentage points over the prior quarter
- We remain well positioned for a strong finish to FY 2008 and to
continue these trends over the longer term
Operational Highlights:
- Increase in design wins, with existing and new customers: broader
customer base
- Continued Tier 1 customer commitments within wireless accounts for
Smartphones and 3G/HSDPA cellular platforms
- Offering highest integrated power management SoC (System on Chip)
solutions
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Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'As expected, we continue to deliver strong revenue growth as a business,
both on a sequential quarter and year on year basis, despite the difficult
external environment. This growth, coupled with our continuing improvement
in gross margin has allowed us to deliver our fourth consecutive profitable
quarter: a significant achievement.
'In uncertain times, Dialog enters the fourth quarter of 2008 with
increased confidence based upon its increasing market share and its strong
cash generation from growing, profitable revenues. Revenues for the full
year 2008 will show substantial growth over the prior year, delivering
profitability in line with our expectations. The recent design wins
achieved from both existing and new customers mean that Dialog is
excellently positioned to deliver a continuation of these trends over the
longer term.'
OPERATIONAL HIGHLIGHTS
During the third quarter, we have remained tightly focused on following our
core strategy, namely to add value to our customers Wireless and
Automotive products by delivering to them the highest integrated
mixed-signal power management solutions. As our customers products become
ever more sophisticated, and as the general consumer becomes ever more
demanding, the need for effective and efficient power management solutions
like our own is becoming increasingly clear.
We are particularly pleased with the performance this quarter in our
Wireless segment, including increasing revenue from our design wins in
Smartphone platforms, the highest forecasted growth sector of the cellular
market. Additionally, for 3G/HSDPA, we have now increased the customer base
for our standard product to 6 customers and saw strong revenue from a Tier
1 customer during the quarter which we expect will continue to ramp in the
fourth quarter. We firmly believe that this product is one of the highest
integrated solutions available today and has applications in mainstay
products such as cellular phones as well as in growth products such as
wireless data cards.
The Consumer area of our business, particularly in the portable hand-held
application area remains a growth market for Dialog and we are pleased with
the progress we are making in a number of customer opportunities in this
area. During the third quarter, as expected, we saw the first revenue
contribution from the ramp of a new product for a handheld media player.
This ramp should continue to increase in the fourth quarter as the
traditional seasonal build in the Consumer segment gains momentum.
Our Automotive and Industrial segment continued to perform in line with our
expectations during the third quarter. Automotive manufacturers are
placing greater emphasis on energy savings and efficiency, as underlined
most clearly by the emergence of hybrid car technologies. We continue to
see new opportunities for the application of our power management
technologies in this segment, particularly in motor control and sensing
technologies. Dialog remains a respected and proven quality supplier to the
Tier 1 automotive suppliers in the industry.
Our commitment to developing highly differentiated products for new and
emerging always-on, low-power display technologies based on passive
matrix OLED technology continues and we are pleased to report further
progress in this area. During the third quarter, we sampled our first
Smartxtend integrated device and, in conjunction with our display partner
we also demonstrated a passive matrix OLED solution at the CEATEC show in
Japan. We will continue to engage with potential customers in these
segments and remain positive on the prospects for our display solutions.
Against this backdrop, during the quarter we launched a new Dialog website
as part of our efforts to refine and improve our corporate identity and
brand awareness.
FINANCIAL HIGHLIGHTS
We have continued to build in the third quarter on the steady improvement
we have seen in our financial position throughout the course of the current
financial year. Revenue for the period stands at $44.0 million, a
sequential increase of 28.0% on the $34.4 million of revenue delivered in
the second quarter of 2008 and an increase of 78.0% over the comparative
period last year.
This growth in revenue has also fed through into a further improvement in
our net profitability during the period. At the period end, net profit was
$1.9 million. This compares to net profit of $271,000 delivered in the
prior quarter and to the net loss of $5.5 million registered in the third
quarter of 2007.
The significant improvement we are now seeing in profitability has been
aided by our commitment to deliver better product mix and increased gross
margin. We are pleased to report that gross margin at the close of the
third quarter was 40.9%. This represents an increase of 5.5 percentage
points over the second quarter of 2008 (35.4%) and an increase of 4.5
percentage points over the comparative period last year (36.4%).
We are very encouraged by our ability to generate positive cash flow from
our operations. We enter the fourth quarter with a balance of $31.4 million
in cash, cash equivalents and securities. This represents an increase of
$4.0 million over the prior quarter. We remain debt free and our credit
facilities remain untapped.
OUTLOOK
In uncertain times, Dialog enters the fourth quarter of 2008 with increased
confidence based upon its increasing market share and its strong cash
generation from growing, profitable revenues. Revenues for the full year
2008 will show substantial growth over the prior year, delivering
profitability in line with our expectations. The recent design wins
achieved from both existing and new customers mean that Dialog is
excellently positioned to deliver a continuation of these trends over the
longer term.
Information about Dialog Semiconductor
Dialog Semiconductor creates some of the worlds most energy-efficient,
highly integrated, mixed-signal integrated circuits. These are optimised
for personal mobile 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 Tridonic.
With its unique focus and expertise in system power management, Dialog
brings decades of experience to the rapid development of integrated
circuits for power and motor control, and audio and display processing.
Dialogs processor companion chips are essential for enhancing both the
performance of hand-held products and the consumers multimedia experience.
Automotive applications include intelligent motor control for comfort and
safety systems. Over one billion parts have been shipped to date. With
world-class manufacturing partners, Dialog operates a fabless business
model. Dialog Semiconductor plc is headquartered near Stuttgart, Germany
with operations in Austria, China, Germany, Japan, Korea, Taiwan, UK, and
the USA. The company employs approximately 250 worldwide, and 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.
For further information please contact:
Dialog Semiconductor FD - London A&B 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 matt.dixon@fd.com c.schaetzle@abfd.de
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
DGAP 21.10.2008
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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
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DGAP-Adhoc: DIALOG SEMICONDUCTOR Plc.: Dialog Semiconductor Plc announces its results for the third quarter of 2008
| Source: EQS Group AG