DGAP-News: Dialog Semiconductor Plc. / Key word(s): Preliminary
Results
DIALOG SEMICONDUCTOR REPORTS FOR FOURTH QUARTER AND YEAR ENDED 31
DECEMBER 2012 RESULTS.Company confirms full year revenue of $774
million and record full year EBIT of $91 million
20.02.2013 / 07:25
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Kirchheim/Teck, Germany, 20 February 2013 - 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 fourth quarter ending 31 December 2012.
Q4 and full year 2012 financial highlights
- Revenue in Q4 up 56% over 2011 at $268 million. Full year revenue at
$774 million representing 47% growth over 2011
- Q4 2012 gross margin improved further by an additional 0.5 percentage
points achieved in the quarter. Gross margin for the full year ended at
37.8%
- Q4 2012 underlying(*) EBITDA(**) up 80% over Q4 2011 to $55.5 million
or 20.7% of revenue. Full year underlying(*) EBITDA(**) up 39% at
$134.5 million or 17.4% of revenue
- Q4 2012 IFRS operating profit (EBIT) up 107% to $44.5 million or 16.6%
of revenue, with the full year ending at $91.0 million or 11.8%,
representing an increase of 48% over 2011
- Underlying(*) Q4 2012 diluted earnings per share up 28% over Q4 2011 at
45 cents. Full year underlying(*) diluted earnings per share up 7% at
$1.19
- Cash generated from operations in Q4 2012 was up 96% over Q4 2011 at
$53.5 million. Full year 2012 cash generated from operations was $52.4
million; Cash and cash equivalents balance as of 31 December 2012 was
$312.4 million
Q4 and full year 2012 operational highlights
- Continued power management smartphone and tablet design win success,
across new models of leading trend-setting manufacturers
- Diversification acceleration with new product launches, new application
partners added and continued ramp of new platform design wins of power
management and audio at Samsung
- Continued to increase content of our products and achieved an overall
company ASP approaching $2.00 in 2012
- First member of our digital power management family incorporating ARM
M0 core sampled
- Transition of PMIC technology to 0.13 um BCD, in preparation for
increased future demand, 300mm production and higher integration PMIC
needs
- New multi-phase buck architecture introduced - key PMIC building block
- supporting the latest quad and octal ARM and Intel Atom multicore
processors
- New segments for Dialog short range wireless entered with success in
wireless audio with leading headset and microphone customers and
penetration of home automation market with SmartPulseTM
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'I am very pleased with the financial results Dialog achieved for Q4 and
the full year 2012, delivering uninterrupted annual revenue growth for the
6th consecutive year. During the year, we improved operating margin while
investing a healthy level of resources in advanced technology and new
product development for both standard and custom products. Coupled with a
strong balance sheet, Dialog is in an excellent position to further
diversify its product portfolio and to continue its success story in 2013.'
Outlook
In Q1 2013, Dialog expects to deliver year on year growth with revenue for
the quarter to be in the range of $177 to $187 million. Q1 2013 revenue
guidance reflects a seasonally low quarter partially driven by a stronger
than anticipated end of year late surge in demand for smartphone and tablet
products.
Gross margin in Q1 2013 will be marginally lower than in Q4 2012,
reflecting the seasonally weaker first quarter. However, gross margin is
expected to improve incrementally through 2013 and grow year on year.
Given the visibility we have, we remain confident about the Company's
revenue growth for the full year, anticipating a much stronger second half
driven by ramp of high volume new products.
Financial overview
IFRS Fourth Quarter Full Year
US$ million 2012 2011 % Var. 2012 2011 % Var.
Revenue 267.7 172.1 +56% 773.6 527.3 +47%
Gross Margin 38.5% 36.5% +200bps 37.8% 39.5% -170bps
R&D % 13.1% 14.5% -140bps 16.5% 17.1% -60bps
SG&A % 8.2% 9.5% -130bps 9.3% 10.7% -140bps
EBIT 44.5 21.5 +107% 91.0 61.6 +48%
EBIT % 16.6% 12.5% +410bps 11.8% 11.7% +10bps
Net income(1) 30.2 19.7 +53% 62.5 57.4 +9%
Basic EPS $(1) 0.46 0.31 +48% 0.97 0.91 +6%
Diluted EPS $(1) 0.43 0.29 +48% 0.93 0.86 +8%
Operating cash flow 53.5 27.3 +96% 52.4 69.6 -25%
Underlying Fourth Quarter Full Year
US$ million 2012 2011 % Var. 2012 2011 % Var.
Gross Margin 38.6% 37.1% +150bps 38.0% 40.1% -210bps
EBITDA 55.5 30.9 +80% 134.5 97.1 +39%
EBITDA % 20.7% 18.0% +270bps 17.4% 18.4% -100bps
EBIT 47.2 26.1 +81% 107.5 79.8 +35%
EBIT % 17.6% 15.2% +240bps 13.9% 15.1% -120bps
Basic EPS $(1) 0.52 0.37 +39% 1.24 1.18 +5%
Diluted EPS $(1) 0.45 0.35 +28% 1.19 1.11 +7%
(1)The finalisation of the purchase price allocation('PPA') for the SiTel
acquisition has resulted in a positive 2 cents retrospective adjustment in
basic and diluted EPS for the full year 2011. Further details of this
adjustment are provided on the 2012 financials and selected notes document
published on our website.
Revenue in Q4 2012 was $268 million, representing a year on year increase
of 56% and a sequential increase of 49% increase over Q3 2012. Demand
during the last few weeks of the year was stronger than anticipated
resulting in our Mobile Systems segment revenues to $639 million for the
full year 2012, 72% up compared to the prior year.
As previously indicated, Q4 2012 gross margin continued to improve for the
fourth consecutive quarter, increasing 0.5 percentage points over the 38.0%
achieved in the prior quarter. We continued to work with our foundry
partner to make further improvements to the manufacturing process, increase
yields and pursue ambitious cost reductions.
R&D investment in Q4 2012 continued to underpin our strategic agenda of
continuous innovation, extending our product portfolio for portable
platforms and broadening of our customer base. We have managed closely our
R&D programmes throughout 2012. As a percentage of revenue, R&D costs for
the full year 2012 were 60bps below that of 2011.
SG&A in Q4 2012 stood at 8.2% of revenue, remaining amongst best in class
in our industry and representing 9.3% of revenue for the year as a whole,
140bps lower than in 2011.
We achieved a record EBIT of $44.5 million in Q4 2012, more than double
what we delivered in Q4 2011. The full year EBIT growth of 48% was
fundamentally driven by the robust performance of our Mobile Systems
segment.
In total, a net tax charge of $11.7 million was recorded in Q4 2012. The
strong financial performance of our business resulted in an overall
effective tax rate for Q4 2012 of 27.9%, taking the full year effective tax
rate to 27.4% compared to 6.6% for full year 2011. The lower effective tax
rate in 2011 was due to the use of cumulated German tax losses at that
point. We expect the tax rate to peak in 2013 at around 30%.
Net income and EPS improved sequentially and year on year in Q4 2012
despite the 2012 increase in effective tax rate. Diluted EPS in Q4 2012 was
48% higher than in the same quarter of 2011, resulting in a full year 2012
fully diluted EPS year on year growth of 8%.
At the end of Q4 2012, our total inventory level was $152 million (or ~81
days), a small anticipated increase of $7 million over the prior quarter
but a 19 days reduction in our days of inventory. We feel this level is
appropriate in order to service our current customer backlog as well as the
expected demand of the business during the next two quarters.
At the end of Q4 2012, we had cash and cash equivalents balance of $312.4
million. In the fourth quarter alone we generated $33 million of cash or
$29 million of free cash flow(***), in line with the strong cash generation
profile of our business. For the year 2012 as a whole the decrease in
operating cash flow generated was mainly attributed to the necessary
increase in inventory to service the growing demand of the business.
(*) Underlying results in Q4 2012 are based on IFRS, adjusted to exclude
share-based compensation charges and related charges for National Insurance
of $1.6 million, excluding $0.9 million of amortisation of intangibles
associated with the acquisition of SiTel Semiconductor B.V. (now Dialog
B.V.) and excluding $1.5 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 and amortisation for intangible assets (Q4
2012: $8.8 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
In Q4 2012, we won additional new custom PMIC designs at our Tier 1
trendsetting accounts. Through our Processor Partner Program initiative, we
also added new design wins for our standard product PMICs at the emerging
white box players for both smartphone and tablets.
Identification of diverse future revenue streams has been a key focus of
the Company in 2012. Several new products were ramped into production and
our sustained investment in R&D will allow us to introduce new products
through 2013. We won new custom smartphone platforms at Samsung and the
business continues to ramp as new phones are introduced for the different
global markets based on these platform wins.
Dialog continued to lead in delivering the highest level of PMIC
integration for smartphones and tablets, as we integrate more functionality
into the PMIC. This allowed us to increase the Average Sales Price (ASP) of
our products from $1.70 in 2011 to nearly $2 in 2012.
During 2012, we have taken major steps in transitioning our power
management IP (intellectual property) to 0.13 micron BCD technology from
0.25 micron today. This smaller geometry allows us to even further increase
the level of functionality we can integrate into our PMIC's, including the
integration of increased digital power management functionality.
Additionally, it gives us access to increased manufacturing capacity at our
foundry partners and a future platform to transition to 300 mm wafer
manufacturing. The first products will begin sampling by Q4 2013.
Our R&D investment continued to deliver exciting product innovations. A new
multiphase buck architecture - key PMIC building block - was introduced.
This allows our devices to more efficiently deliver the increased current
demands of smartphones as the application processors rapidly transition to
quad and octal core based architectures. The ARM(R) Cortex(TM) M0 core was
integrated into our first PMIC devices, supporting the trend of the
transition to more digital power management based control, including faster
charging and more accurate battery fuel gauge monitoring.
For low energy short range wireless, in 2012, we focused our R&D and sales
efforts on addressing faster growing segments including the wireless
microphone, headset and smarthome connectivity markets, achieving already
the first design wins. Dialog's wireless audio technology offers lower
latency and interference free operation while our Smartpulse(TM) - DECT ULE
based technology - allows devices to be more easily connected to the cloud
and controlled from a smartphone or a tablet.
* * * * *
Dialog Semiconductor invites you today at 09.00 am (London) / 10.00 am
(Frankfurt) to take part in a live conference call and to listen to
management's discussion of the Company's Q4 and full year 2012 performance,
as well as guidance for Q1 2013. 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 86698933#. 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
Full release including the Company's consolidated income statement,
consolidated balance sheet, consolidated statements of cash flows and
selected notes for the period ending 31 December 2012 is available under
the investor relations section of the Company's website at:
http://www.diasemi.com/investor-relations
For further information please contact:
Dialog Semiconductor
Jose Cano
Head of Investor Relations
T: +44 (0)1793 756 961
jose.cano@diasemi.com
Dialog Semiconductor
Helen McInnes
Head of Global Corporate Communications
T: +44(0)1793-756-960
Mobile: +44 7554 419 180
helen.mcinnes@diasemi.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, tablets, 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 2012, it had $774 million in
revenue and was one of the fastest growing European public semiconductor
companies. At the end of 2012 it had approximately 800 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.
End of Corporate News
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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: jose.cano@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
End of News DGAP News-Service
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201858 20.02.2013
DGAP-News: DIALOG SEMICONDUCTOR REPORTS FOR FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2012 RESULTS.Company confirms full year revenue of $774 million and record full year EBIT of $91 million
| Source: EQS Group AG