DGAP-News: Dialog Semiconductor Plc.: Dialog Semiconductor Announces its Results for the Third Quarter of 2012
| Source: Equity Story
DGAP-News: Dialog Semiconductor Plc. / Key word(s): Quarter Results
Dialog Semiconductor Plc.: Dialog Semiconductor Announces its Results
for the Third Quarter of 2012
31.10.2012 / 07:30
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DIALOG SEMICONDUCTOR ANNOUNCES ITS RESULTS FOR THE THIRD QUARTER OF 2012
Company meets upper end of Q3 guidance, reporting record quarterly revenue
of $180 million, representing year-on-year growth of 28%
Kirchheim/Teck, Germany, 31 October 2012 - Dialog Semiconductor plc (FWB:
DLG), a provider of highly integrated innovative power management, audio
and low energy short range wireless technologies, today reports results for
its third quarter ending 28 September 2012.
Q3 2012 Financial Highlights
- Revenue for Q3 2012 was $180.0 million, an increase of 28.0% over Q3
2011
- Incremental gross margin improvement of 0.5 percentage points achieved
in the quarter
- Q3 2012 underlying(*) EBITDA(**) of $29.2 million or 16.2% of revenue,
compared to $28.0 million or 19.9% in the prior year
- Q3 2012 IFRS operating profit (EBIT) of $17.5 million or 9.7% of
revenue with underlying(*) operating profit of $21.8 million or 12.1%
of revenue
- Q3 2012 underlying(*) diluted earnings per share of 27 cents, compared
to 31 cents in Q3 2011 (or 26 cents using current effective tax rate of
27.0%)
- Revenue outlook for Q4 2012 of $215m to $235m, consistent with a full
year revenue of $721m to $741m
Q3 2012 Operational Highlights
- Quarterly revenue driven by continued revenue growth of Smartphone and
Tablet PC products for both custom and standard products at our leading
customers
- Several high volume custom PMIC product ramps commenced in quarter to
support expected demand for recently launched popular and trend
setting portable Smartphone and Tablet products
- New PMIC for Processor Partner Program initiative sampling, targeting a
new entrant next generation Application Processor for Tablets and
Smartphones
- Sampled new PMIC for an LTE based chipset platform partner for Asia
based customers
- Industry's highest current multi-phase buck converters for PMICs
sampling at our key accounts, targeting quad-core based Application
Processor portable systems, expected revenue contribution in 2013
- Continued customer engagement for our wireless audio solutions,
targeting leading brand microphone, gaming and professional headset
OEMs.
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'With another record revenue quarter, Dialog has continued to deliver
strong year-over-year growth momentum with our business performing well
across all key metrics. We are particularly pleased to have delivered a
third successive quarter of incremental gross margin improvement.
Our team is focused on making the Dialog brand synonymous with high
integrated PMIC performance delivering leading energy saving capability for
portable devices. This enhances our confidence for continued top line
growth and allows us to continue to engage with the leading customers in
the Smartphone, Tablet PC and Ultrabook markets.'
FINANCIAL OVERVIEW
Revenue in Q3 2012 was $180.0 million, representing a sequential increase
of 12.8% on the $159.5 million of revenue delivered in the prior quarter
and an increase of 28.0% over the $140.6 million delivered in the third
quarter of 2011.
Gross margin continues, as forecast, to steadily and incrementally improve.
In Q3 2012, gross margin stood at 38.0% of revenue, representing an
increase of 0.5 percentage points over the 37.5% achieved in the prior
quarter and a decrease of 2.8 percentage points over the 40.8% achieved in
Q3 2011. The Q3 2012 underlying(*) gross margin was 38.2% compared to 37.5%
in Q2 2012. This represents the third successive quarter of incremental
gross margin improvement.
R&D in Q3 2012 stood at 18.8% of revenue, compared to 19.1% in the prior
quarter and 17.7% in Q3 2011. Underlying(*) R&D in Q3 2012 stood at 18.0%
of revenue respectively, compared to 16.9% in Q3 2011. Our on-going
investment in R&D underpins our strategic agenda of continuous innovation,
extending our product portfolio for portable platforms and broadening of
our customer base.
SG&A in Q3 2012 stood at 9.5% of revenue, compared to 10.0% in the prior
quarter and 9.7% in Q3 2011. Underlying(*) SG&A in Q3 2012 stood at 8.0% of
revenue, compared to 8.4% in Q3 2011.
Operating profitability on an IFRS basis has also continued to improve on a
sequential basis. In Q3 2012, Operating Profit was $17.5 million or 9.7% of
revenue. This compares to the $13.4 million or 8.4% of revenue achieved in
the prior quarter and $19.1 million or 13.6% of revenue achieved in Q3
2011. The underlying(*) operating profit achieved in Q3 2012 was $21.8
million or 12.1% of revenue, compared with the underlying(*) operating
profit of $16.9 million or 10.6% in the prior quarter and $22.8 million or
16.2% of revenue in Q3 2011.
In Q3 2012 underlying(*) EBITDA(**) was $29.2 million or 16.2% of revenue
compared to $24.4 million or 15.3% in the prior quarter and $28.0 million
or 19.9% in Q3 2011.
In total a net tax charge of $4.5 million was recorded in Q3 2012.
Consequently, the overall effective tax rate for Q3 2012 was 27.0%. By
comparison, the effective tax rate in Q3 2011 was 9.1% due to the use of
cumulated German tax losses at that point.
In Q3 2012, on an IFRS basis, net profit was $12.1 million or 19 cents per
basic share and 18 cents per diluted share. This compares to a net profit
of $8.5 million or 13 cents per basic and 12 cents per diluted share in the
prior quarter and a net profit of $17.0 million or 27 cents per basic and
25 cents per diluted share delivered in Q3 2011. The underlying(*) earnings
per share (diluted) in Q3 2012 was 27 cents. This compares to 20 cents in
Q2 2012 and 31 cents in Q3 2011.
At the end of Q3 2012, our total inventory level was $145.3 million (or
~100 days), an increase of $42.8 million over the prior quarter and a level
which we feel is appropriate in order to service our current customer
backlog as well as the expected demand of the business during the next two
quarters. 50% of this inventory is related to new products which started
production during 2012.
At the end of Q3 2012, we had a cash and cash equivalents balance of $279.1
million. This represents a decrease of $24.9 million over the cash and cash
equivalents in the prior quarter. Free cash flow(***) movement in the
quarter was an outflow of $40.3 million. The decrease in cash is mainly
attributed to the costs associated with the increase in inventory necessary
to service the expected demand of the business during the next two
quarters.
(*) Underlying results in Q3 2012 are based on IFRS, adjusted to exclude
share-based compensation charges and related charges for National Insurance
of $2.9 million, excluding $1.5 million of amortisation of intangibles
associated with the acquisition of Dialog B.V. and excluding $1.4 million
noncash-effective interest and financial expense in connection with the
convertible bond and discounted purchase prices.
The term 'underlying' is not defined in IFRS and therefore may not be
comparable with similarly titled measure reported by other companies.
Underlying measures are not intended as a substitute for, or a superior
measure to, IFRS measures.
(**) EBITDA is defined as operating profit excluding depreciation for
property, plant and equipment (Q3 2012: $3.4 million) and amortisation for
intangible assets (Q3 2012: $5.4 million)
(***) Free cash flow is defined as net income plus amortisation and
depreciation, plus/minus change in working capital, minus capital
expenditure and plus/minus interest expense/income.
OPERATIONAL OVERVIEW
Our design win success with Smartphone customers for both custom power
management designs and configurable standard products continued to gain
momentum through Q3 2012, driven by increased adoption of 3G and LTE/4G
technologies around the world. Additionally, during the quarter we also
started to ramp several new high volume custom PMIC products for recently
launched popular Smartphone and Tablet models.
During the quarter Dialog again demonstrated that it has met the challenge
of developing a new buck - a key building block of PMIC's architecture with
integrated FETs capable to supply the industry's highest currents - up to
21 amps - seen so far in a PMIC for portable devices. Dialog engineers
pushed the limit of technology with a combination of innovations, including
a multiphase architecture, distributed power dissipation, higher efficiency
circuits and a higher performance package. Benefits include smaller
external inductors and reduced filtering requirements reducing our
customer's printed circuit board space in a Smartphone or Tablet design
while facilitating increased currents required for the new generation of
quad core base application processors now emerging. We expect to announce
products for this by early 2013 with designs targeted for volume production
in 2013.
As a result of a partnership with a significant new entrant to the
Applications Processor market for Smartphones and Tablets, we delivered in
the quarter first samples of a new PMIC device. The device will now be
sampled to leading industry OEMs with the target to be in production by the
end of 2013.
Our existing range of Platform Partner PMIC standard products were also
adopted for a number of niche Tablet and other embedded applications around
the world.
We have now available our first samples of a high integrated PMIC for an
LTE Partner Platform chipset for expected deployment with major Asian based
OEMs in 2013.
For wireless audio, we continued our engagement, with additional design
wins achieved based on a new DECT based short-range wireless processor at
leading microphone, gaming and professional headset global OEMs. Our new
products offer low latency and interference-free wireless operation for
real-time audio applications. Our combined chipset solutions for DECT and
Power Management devices are also gaining traction for the new generation
of Android based cordless phones.
OUTLOOK
In Q4 2012, we expect our momentum to continue and to deliver revenue
forthe quarter in the range of $215 to $235 million, resulting in an
expected
full year revenue performance of between $721 and $741 million, meeting
current market expectations and representing further significant year on
year growth.
We continue to believe that the positive trend of gradual incremental gross
margin improvement achieved in the first three quarters of 2012 will
continue in Q4, supported by our increasing supply chain visibility.
* * * * *
Dialog Semiconductor invites you today at 09.00 am (London) / 10.000 am
(Frankfurt) to listen in a live conference call to management's discussion
of Q3 2012 performance, as well as guidance for Q4. To access the call
please use the following dial-in numbers: Germany: 0800 101 4960, UK: 0800
694 0257, US: 1866 966 9439, ROW: +44 (0)1452 555 566, with no access code
required. An instant replay facility will be available for 30 days after
the call and can be accessed at +44 (0)1452 550 000 with access code
38961363#. An audio replay of the conference call will also be posted soon
thereafter on the company's website at:
http://www.dialog-semiconductor.com/investor-relations
Additional information to this release including the company's consolidated
income statement, consolidated balance sheet and consolidated statements of
cash flows for the period ending 28 September 2012 is available under the
investor relations section of the Company's website.
For further information please contact:
Dialog Semiconductor
Neue Strasse 95
D-73230 Kirchheim/Teck
Germany
T: +49 7021 805 412
dialog@fticonsulting.com
www.dialog-semiconductor.com
FTI Consulting London
Matt Dixon
T: +44 (0)20 7269 7214
matt.dixon@fticonsulting.com
FTI Consulting Frankfurt
Thomas M. Krammer
T: +49 (0) 69 9203 7183
thomas.krammer@fticonsulting.com
Note to editors
Dialog Semiconductor creates highly integrated, mixed-signal integrated
circuits (ICs) optimised for personal portable, low energy short-range
wireless, 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.
With its focus and expertise in energy efficient system power management,
and with a technology portfolio including audio, short range wireless and
VoIP technology, Dialog brings decades of experience to the rapid
development of ICs for personal portable applications including
Smartphones, Tablet PCs, digital cordless and gaming applications.
Dialog's power management processor companion chips are essential for
enhancing both the performance in terms of extended battery lifetime 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 2011, it had approximately $527
million in revenue and was one of the fastest growing European public
semiconductor companies. It currently has approximately 760 employees. The
company is listed on the Frankfurt (FWB: DLG) stock exchange and is a
member of the German TecDax index.
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 supersede any
previous statement.
Further Financial Information
<pre>
US$000 Q3 - 2012 Q3 - 2011
IFRS Adjust- Under- IFRS ***) Adjust- Under-
ment lying *) ment lying *)
Revenue 180,023 - 180,023 140,615 - 140,615
Cost of
sales (111,533) (280) (111,253) (83,278) (798) (82,480)
Gross profit 68,490 (280) 68,770 57,337 (798) 58,135
Selling and
marketing
expenses (9,223) (1,535) (7,688) (8,762) (1,809) (6,953)
General and
administrative
expenses (7,938) (1,190) (6,748) (4,930) (13) (4,917)
Research and
development
expenses (33,868) (1,375) (32,493) (24,821) (1,089) (23,732)
other
operating
income - - - 303 - 303
Operating
profit 17,461 (4,380) 21,841 19,127 (3,709) 22,836
Financial
result (846) (1,445) 599 (397) - (397)
Result before
income taxes 16,615 (5,825) 22,440 18,730 (3,709) 22,439
Income tax
expense (4,487) - (4,487) (1,698) - (1,698)
Net profit 12,128 (5,825) 17,953 17,032 (3,709) 20,741
Earnings per
share in US$
Basic 0.19 (0.09) 0.28 0.27 (0.06) 0.33
Diluted 0.18 (0.09) 0.27 0.25 (0.06) 0.31
EBITDA **) 26,319 (2,920) 29,239 26,637 (1,358) 27,995
</pre>
<pre>
US$000 Q1-Q3 - 2012 Q1-Q3 - 2011
IFRS Adjust- Under- IFRS ***) Adjust- Under-
ment lying *) ment lying *)
Revenue 505,896 - 505,896 355,183 - 355,183
Cost of
sales (316,216) (840) (315,376) (209,758) (1,993)(207,765)
Gross profit 189,680 (840) 190,520 145,425 (1,993) 147,418
Selling and
marketing
expenses (28,006) (5,265) (22,741) (23,024) (4,043) (18,981)
General and
administrative
expenses (22,193) (4,059) (18,134) (17,535) (4,337) (13,198)
Research and
development
expenses (92,904) (3,556) (89,348) (65,030) (3,223) (61,807)
other
operating
income - - - 301 - 301
Operating
profit 46,577 (13,720) 60,297 40,137 (13,596) 53,733
Financial
result (2,331) (3,130) 799 (156) - (156)
Result before
income taxes 44,246 (16,850) 61,096 39,981 (13,596) 53,577
Income tax
expense (11,947) - (11,947) (3,169) - (3,169)
Net profit 32,299 (16,850) 49,149 36,812 (13,596) 50,408
Earnings per
share in US$
Basic 0.50 (0.26) 0.76 0.59 (0.22) 0.81
Diluted 0.48 (0.25) 0.73 0.55 (0.20) 0.76
EBITDA **) 70,448 (8,576) 79,024 7,683 (7,815) 65,498
</pre>
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Language: English
Company: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
United Kingdom
Phone: +49 7021 805-412
Fax: +49 7021 805-200
E-mail: birgit.hummel@diasemi.com
Internet: www.diasemi.com
ISIN: GB0059822006, XS0757015606
WKN: 927200
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
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