Dialog Semiconductor Plc. / Final Results
25.02.2009
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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Company reports revenue in 2008 of $161.8 million, achieving 86 % growth
over 2007
Kirchheim/Teck, Germany, 25th February 2009 - Dialog Semiconductor plc
(FWB: DLG), a leading provider of Power Management Semiconductor solutions
today reports its fourth quarter and year ended 31st December 2008 results.
Q4 and Financial Year 2008 Financial Highlights
- Revenue for Q4 was $51.9 million, an increase of 18% over the prior
quarter and 50% on Q4 2007. For the financial year, revenue was $161.8
million representing an increase of 86% over 2007.
- Cash and cash equivalents increased in Q4 by $5.5 million to stand at
$36.9 million, an increase of $1.1 million over the year ago period.
- Further improvement in net profitability in Q4 with a net profit of
$4.6 million or 8.9 % of revenue. For the financial year, net profit
was $6.8 million or 4.2 % of revenue.
- Quarterly gross margin increased to 42.1%, an increase of 1.2
percentage points over the prior quarter. For the financial year,
gross margin was 38.7%, representing an increase of 5.3 percentage
points year over year.
- Diluted earnings per share for Q4 was 10 cents, compared to 4 cents in
the prior quarter. For the financial year, diluted earnings per share
was 15 cents, compared to a loss of 42 cents per share (Basic and
Diluted) in 2007.
Q4 and Financial Year 2008 Operational Highlights
- Successful introduction and ramp of new products during 2008, with
revenue contribution of more than 30% from products developed in the
previous twelve months.
- Successful entrance with leaders to the Smartphone market.
- Expansion of customer base for advanced 3G/HSPA integrated solutions
to 6 cellular customers, including adoption of the technology in the
emerging netbook market.
- Increased penetration and market share gain in portable media devices.
- SmartXtend(TM) Passive Matrix OLED technology for next generation
cellular displays proven and demonstrated with Japanese module
partner.
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Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
I am proud of our accomplishments in 2008 where a strong fourth quarter
concluded a very solid year of growth in revenue and improved operating
metrics for Dialog, including an increase in our cash balance. The efforts
made during the year to diversify our customer and revenue base have
clearly supported our strategy to address the emerging demand in the
portable space for higher integrated Power Management solutions.
This performance in the fourth quarter further increases our confidence
that we are gaining market share in the key cellular and portable media
player market segments which is very positive for the long term growth
prospects of Dialog. We are also encouraged by our design wins and design
win opportunities as we enter 2009, together with a pipeline of innovative
new products such as SmartXtend(TM) that remain on track and exciting in
their potential.
Current macro economic conditions remain uncertain and we therefore retain
a cautious outlook for the year ahead. Nevertheless, we anticipate
revenues in the first half of 2009 to be broadly similar to those reported
in the first half of 2008. Looking ahead, as we continue to realise the
benefits of our increasing market share and seasonal demand in the wireless
3G/HSPA segment and further demand from new Smartphone customers, we would
expect to achieve growth for the full year 2009.
FINANCIAL OVERVIEW
Revenue in Q4 was $51.9 million, a sequential increase of 18% on the $44
million of revenue delivered in the third quarter of 2008 and an increase
of 50% over the $34.5 million in the comparative period last year. For the
financial year, revenue was $161.8 million, an increase of 86% over 2007,
where the revenue was $86.8 million.
This growth in revenue led to a further improvement in our net
profitability during Q4. In the fourth quarter, net profit was $4.6 million
or 10 cents per diluted share and our fifth consecutive quarter of
profitability. This compares to a net profit level of $1.9 million or 4
cents per diluted share delivered in the prior quarter and to a net profit
of $1.3 million or 3 cents per diluted share in the fourth quarter of 2007.
For the financial year, net profit was $6.8 million or 15 cents per share,
compared to an operating loss of $19 million and a loss per share (Basic
and Diluted) of 42 cents recorded in 2007.
We are pleased to report that gross margin in the fourth quarter was 42.1
%. This represents an increase of 1.2 percentage points over the 40.9% in
the prior quarter and an increase of 0.6 percentage points over the 41.5 %
in the comparative period last year. For the financial year, the gross
margin was 38.7% representing and increase of 5.3 percentage points over
the gross margin of 33.4% registered in 2007.
At the end of Q4, our inventory level was $19.9 million, a reduction of
$5.6 million over the prior quarter. Although 2008 revenue grew by 86% over
2007, our inventory only increased 17% during that same period,
demonstrating our ability to efficiently manage our supply chain.
During the quarter, we converted our remaining cash securities to cash due
to the current uncertainties in the global banking environment. At the end
of Q4, we had a cash balance of $36.9 million. This represents an increase
of $5.5 million over the cash and securities balance of the prior quarter
and $1.1 million for the financial year. We are very encouraged with this
ability to generate positive cash from our operations. We remain debt free
and our credit facilities remain untapped.
OPERATIONAL OVERVIEW
During 2008 we generated tremendous momentum in our business. Within the
wireless segment, our business was driven by the success of our 3G/HSPA
integrated power management and audio products, where our customer base has
now expanded to include 6 cellular customers. Additionally, within the
Smartphone segment we saw the adoption of our solutions by leading
Smartphone manufacturers, including volume production for a popular model
sold globally. Despite the forecasted contraction of the cellular industry,
we are encouraged as 3G/HSPA and Smartphone are the highest forecasted
growth sectors of the cellular industry for 2009.
Within the portable media sector, we successfully increased our penetration
and market share through additional design wins with existing and new
customers in a series of their products that are successful in the global
market today.
We made excellent progress with our audio developments from our new design
centre in Edinburgh. We sampled the first silicon which will enable a new
class of audio quality products, with extremely low power and high fidelity
targeted at portable media devices. Entrance to the audio market
significantly expands the addressable market for Dialog and perfectly
complements our strategy for bringing more value to our Power Management
customers through a higher level of silicon integration.
We have increased the number of customer engagements and design wins in
North America, with the region now contributing 35% of our revenue in 2008.
With our newly established sales and technical support office in Korea and
significant recent design wins, we anticipate further geographic
diversification of our revenue and customer base to come increasingly from
Asia.
We continued to transition our business model from customised ASIC products
to a portfolio which will include a higher mix of standard or ASSP
products. Exiting 2008, approximately 65% of our products were ASIC and 35%
ASSP. With the same device sold to multiple customers, this strategy
supports lower R&D investment and yields higher gross margins. In the
fourth quarter of 2008, we sampled what we believe is the most configurable
Power Management IC or PMIC solution available and 2009 will see the launch
of additional standard products supporting this strategy.
Within Dialog's Automotive and Industrial segment, we continued to see
demand for our power control and sensing technologies, driven by the
growing trend for new electric and hybrid technologies within the
automotive industry.
In Q4 we had lower than expected revenue from our existing products in the
automotive sector, primarily caused by the global economic downturn.
However, we were successful in engaging with a tier 1 supplier and existing
customer in the development of a new advanced sensor processing device
which complements our existing business. Dialog is a proven and quality
supplier to the automotive industry, achieving a level of close to zero
product defects, among the best in class.
The industrial part of our business remains steady where we continue to
engage with customers such as Tridonic ATCO, a major industrial lighting
supplier in the development of energy saving integrated circuits,
supporting advanced fluorescent, high intensity and LED lighting
applications.
During 2008 in our display business, we focused our efforts fully on
Passive Matrix OLED and two display technologies - e-ink and MEMS, for the
'always on' sub displays emerging in cellphones today. We successfully
demonstrated the first silicon of our Passive Matrix OLED solution -
Smartxtend(TM), during the fourth quarter together with our module partner
in Japan. This technology is gaining significant attention as a solution
for the QVGA main display in Cellphones and we expect to have production
ready silicon during the second half of 2009. We also received the
prestigious 2008 NMI innovation award in the UK for this technology.
We were successful in bringing our e-ink driver technology into a tier 1
Cellphone manufacturer and expect to see revenue contributions from this
during the first half of 2009.
OUTLOOK
Current macro economic conditions remain uncertain and we therefore retain
a cautious outlook for the year ahead. Nevertheless, we anticipate
revenues in the first half of 2009 to be broadly similar to those reported
in the first half of 2008. Looking ahead, as we continue to realise the
benefits of our increasing market share and seasonal demand in the wireless
3G/HSPA segment and further demand from new Smartphone customers, we would
expect to achieve growth for the full year 2009.
Dialog Semiconductor invites you today at 0900 UK / 1000 CET to listen in
to a live conference call of managements discussion of Q4 and full year
2008 performance, as well as guidance for financial 2009. For further
details please contact Financial Dynamics (FD) on the numbers below.
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 31 December 2008 is
available under the investor relations section of the Company's web site.
Information about Dialog Semiconductor
Dialog Semiconductor creates some of the world's 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
ATCO. 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.
Dialog's 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 280 worldwide, and 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.
For further information please contact:
Dialog Semiconductor FD - London A&B FD - Frankfurt
Neue Straße 95 James Melville-Ross Claudine Schaetzle
D-73230 Kirchheim/Teck T +44 20 7269 7179 T +49 69 920 37 185
Germany james.melville-ross@fd.com c.schaetzle@abfd.de
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
DGAP 25.02.2009
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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 REPORTS FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2008 RESULTS
| Source: EQS Group AG