Dialog Semiconductor Plc. / Quarter Results 28.07.2009 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Company reports revenue in second quarter of $45.0 million, achieving 25% growth over the first quarter of 2009 Kirchheim/Teck, Germany, 28th July 2009 - Dialog Semiconductor plc (FWB: DLG), a leading provider of high integrated innovative Power Management Semiconductor solutions, today reports results for its second quarter ending 26th June 2009. Q2 2009 Financial Highlights - Revenue for Q2 2009 was $45 million, an increase of 25% over the prior quarter and 31% over the corresponding quarter of 2008 - Net profit in Q2 2009 of $3.3 million or 7.3% of revenue compared to $0.8 million in prior quarter, our seventh successive quarter of profitability - Diluted earnings per share of 7 cents in the quarter - Total cash increased in Q2 2009 over prior quarter by $2.7 million to stand at $43.5 million. Dialog remains debt free with credit lines untapped - Received and recorded $2.3 million BenQ payment settlement, benefiting income statement and balance sheet (as explained in Financial Overview) Q2 2009 Operational Highlights - Continued design win success in the smartphone market, now shipping to three top tier smartphone manufacturers - Samsung's launch of their Alias 2 cellphone using Dialog e-ink display driver technology - Revenue diversification, with one of the top 5 cellphone manufacturers emerging as a new 10% customer for our advanced 3G/HSPA platform IC - Successful launch of a new Power Management IC as a companion device for Intel(R) Atom(TM) series of processors --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said: 'We had a strong second quarter with growth in revenue, gross margins and net income. Through this industry downturn, Dialog has continued to make great strides and is now emerging as one of the leading high performance Mixed-Signal semiconductor companies, developing advanced and innovative products that target high growth end markets. We continue to be extremely encouraged by our design win successes, as we add more top tier customers and believe these will drive continued growth for Dialog.' FINANCIAL OVERVIEW Revenue in Q2 2009 was $45.0 million, an increase of 25% over the $36.0 million in the prior quarter and increase of 31% on the $34.4 million of revenue delivered in the corresponding quarter of 2008. This includes $2.0 million of revenues in relation to a net cash settlement of $2.3 million which we received and recorded in the quarter. This cash settlement was against receivables which had previously been written down and revenues that had not been recognised in 2006 as a result of the insolvency of BenQ Mobile. Excluding this, Q2 2009 revenue was $43.0 million. Gross margin for the second quarter was 45.7%, positively impacted by 2.4 percentage points by the BenQ settlement. This represents an increase of 9.0 percentage points over that achieved in the prior quarter and an increase of 10.3 percentage points over that achieved in Q2 2008. Excluding the impact of $2.0 million of revenue relating to the cash settlement from the BenQ insolvency, gross margin for Q2 2009 would have been 43.3%. In Q2 2009, net profit was $3.3 million or 7 cents per diluted share, our seventh consecutive quarter of profitability. This compares to a net profit of $0.8 million or 2 cents per diluted share in the prior quarter and to a net profit of $0.3 million or 1 cent per diluted share delivered in Q2 2008. Excluding the effect of the cash settlement from the BenQ insolvency, net profit would have been $1.0 million or 2 cents per share. At the end of Q2 2009, we had a cash, cash equivalents and restricted cash balance of $43.5 million. This represents an increase of $2.7 million over the cash and cash equivalents balance at the end of Q1 2009 and an increase of $16.1 million over the cash, cash equivalents and securities balance at the end of Q2 2008. At the end of Q2 2009, our inventory level was $19.0 million, an increase of $1.4 million over the prior quarter, in line with the increased seasonal demand as we entered Q3-2009. During Q2 2009, we continued to tightly manage our Operating Expenses whilst investing in our sales and marketing organisation. We achieved an SG&A rate of 15.5% and R&D rate of 22.4% of revenues. Excluding the effect of onetime charges, SG&A and R&D, would have been 14% and 21% respectively. OPERATIONAL OVERVIEW WIRELESS Our success with smartphone products continues as we now ship to three top tier manufacturers with leading smartphone offerings in the market. Samsung also launched their Alias2 cellphone which includes our e-ink driver technology in an innovative power saving keyboard implementation. Adding Samsung as a new volume customer is an important milestone for Dialog and a result of our recent focus on expanding our business in Asia. We saw increased revenue contribution from our 3G/HSPA platform customers as 3G technology continues to be aggressively promoted by the carriers worldwide. In addition, one of the top 5 global cellphone manufacturers emerged as a greater than 10 percent revenue contributor for Dialog in the quarter for our 3G/HSPA solution. Our Smartxtend(TM) passive matrix OLED developments remain on track for production silicon at the end of this year. We continue to engage positively in discussions with the Tier 1 cellphone manufacturers and module manufacturers on the tremendous value proposition that this technology delivers over traditional TFT LCD displays and active matrix OLED competing technologies. AUTOMOTIVE & INDUSTRIAL During the quarter we launched the DA6001 power management and clocking IC as a companion device for the Intel (R) Atom(TM) processor. As the Atom processor is becoming prevalent in many automotive infotainment, industrial and the fast growing netbook markets, this represents an exciting new opportunity for Dialog to expand its addressable market. Dialog developed this device in collaboration with Intel and a global Tier 1 infotainment customer and is the highest integrated solution available on the market. We have also recently announced a joint development centre with TridonicAtco in Austria, a leading industrial lighting manufacturer, to jointly develop energy saving lighting and LED integrated circuits which we see as an opportunity to capitalise on this emerging trend in the industry. Our current products in the automotive and industrial segment continued to be impacted by the global economic downturn in the quarter. However, we see modest signs of recovery in our business going forward partially attributed to the various government incentive packages encouraging consumer car purchases. OUTLOOK Due to the current economic conditions, we retain a cautious outlook on our business for 2009 and continue to carefully manage operating expenses and cash. However, given our positive first half results, we now believe for the financial year 2009, our revenue will be up by at least low double digits on that recorded in the prior year. We expect to maintain profitability for the year at least at a similar rate to that achieved in 2008. Dialog Semiconductor invites you today at 10 am CET to listen in a live conference call to management's discussion of Q2 2009 performance, as well as guidance for financial 2009. To access the call please use the following dial-in numbers: Germany: 0800 101 2072, UK: 0800 358 0886, US: 1 877 941 2930 with access code 4114032 required. An instant replay facility will be available for 30 days after the call and can be accessed at +49 69 58 99 90 568 with access code 142062# (Germany). An audio replay of the conference call will also be posted soon thereafter on the company's website at: http://www.diasemi.com/investor_relations.php 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 26th June 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 StraÃe 95 Erwan Gouraud Claudine Schaetzle D-73230 Kirchheim/Teck T +44 20 7831 3113 T +49 69 920 37 185 Germany erwan.gouraud@fd.com claudine.schaetzle@fd.com T +49-7021-805-412 F +49-7021-805-200 dialog@fd.com www.dialog-semiconductor.com Note to editors: 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 business partner. Customers with a significant contribution to revenue include Sony-Ericsson, Apple, Bosch and TridonicAtco. With its unique 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 control. Dialog's processor companion chips are essential for enhancing 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 2008, it had more than $160 million in revenue and was the fastest growing European public semiconductor company, achieving a growth rate of more than 85%. It currently has approximately 300 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 supercede any previous statement. DGAP 28.07.2009 --------------------------------------------------------------------------- Language: English Issuer: Dialog Semiconductor Plc. Tower Bridge House, St. Katharine's Way E1W 1AA London GroÃbritannien 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, München, Düsseldorf, Stuttgart, Hamburg End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR ANNOUNCES ITS RESULTS FOR THE SECOND QUARTER OF 2009
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