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. --------------------------------------------------------------------------- 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 --------------------------------------------------------------------------- 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 --------------------------------------------------------------------------- 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 Plc.: Dialog Semiconductor Plc announces its results for the third quarter of 2008
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