Dialog Semiconductor Plc. / Quarter Results
20.07.2010 07:35
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.
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Company reports revenue in second quarter of $68.5 million, achieving
strong year-on-year revenue growth of 52%
Kirchheim/Teck, Germany, 20 July 2010 - Dialog Semiconductor plc (FWB:
DLG), a leading provider of high integrated innovative Power Management
Semiconductor solutions, today reports results for its second quarter
ending 2 July 2010.
Q2 2010 Financial Highlights
- Revenue for Q2 2010 was $68.5 million, an increase of 12.1% over the
prior quarter and 52.2% over the corresponding quarter of 2009
- Net Income in Q2 2010 was $11.2 million or 16.4% of revenue compared to
$4.9 million or 8.1% of revenue in the prior quarter
- Basic and Diluted earnings per share of 19 and 17 cents respectively
in the quarter
- Expect Q3 2010 revenues to be between $72 and $77 million
- Reiterate 2010 guidance
Q2 2010 Operational Highlights
- 2 significant new Strategic Processor partners added in quarter,
further diversifying Dialog's application and customer base
- Continued ramp and market adoption of new design wins for Power
Management configurable standard products for portable devices
- Success in Audio, including design wins at 2 major recognised consumer
brand companies
- Intel Atom companion PMIC program accelerating with designs wins across
multiple industrial and infotainment applications
- Power Management motor control ASSPs under advanced evaluation at
Japanese and Korean Automotive suppliers
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Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'Dialog's growth this quarter further underscores our confidence in our
ability to grow faster than the markets we serve.
Our success in growing the top line and the design win momentum we are
creating, through our sales channels and with our processor partners for
our PMIC solutions, further validates our strategy and demonstrates how our
diversification initiatives are paying dividends', added Bagherli.
FINANCIAL OVERVIEW
Revenue in Q2 2010 was $68.5 million, an increase of 12.1% over the $61.1
million in the prior quarter and an increase of 52.2% on the $45.0 million
of revenue delivered in the corresponding quarter of 2009. During the
quarter we also benefited from $3.1 million sales of last time buy products
within the Automotive and Industrial segment.
Gross margin for the second quarter was 48.3%. This represents an increase
of 2.3 percentage points over that achieved in the prior quarter and an
increase of 2.6 percentage points over that achieved in Q2 2009.
Our operating expenses in Q2 2010 decreased by $0.5 million over the prior
quarter to $21.1 million, with R&D and SG&A at 19.5% and 10.5% of revenue
respectively, compared to 21.6 % and 13.6% in the prior quarter. The
operating expenses included net charges of $0.7 million for share-based
compensation. Excluding the reduction in related social charge recorded
during the quarter as a result of a lower share price, Q2 2010 underlying
share-based compensation would have been approximately $1.1 million.
Operating profit in Q2 2010 was $12.0 million or 17.5% of revenues compared
to $6.6 million or 10.8% of revenues delivered in the prior quarter and
$3.9 million in Q2 2009.
Q2 2010 taxable profits continued to benefit from the utilisation of
brought forward tax losses resulting in a residual minimum level tax charge
mainly applying to taxable profits in Germany. A net tax charge of $0.6
million was recorded for Q2 2010 which included a benefit of $2.4 million
or 4 cents per diluted and basic share, being a further recognition of a
proportion of the deferred tax assets principally relating to carried
forward losses. Consequently, the effective tax rate in Q2 2010 was 5.2%.
As we have previously stated, going forward and on a quarterly basis, we
will consider whether it is appropriate to continue to recognise further
currently unrecognised deferred tax assets.
In Q2 2010, net income was $11.2 million or 16.4% of revenue. Earnings per
basic and diluted share were 19 cents and 17 cents respectively: This
compares to a net income of $4.9 million or 8 cents per basic and diluted
share in the prior quarter and $3.3 million or 7 cents per basic and
diluted share delivered in Q2 2009.
At the end of Q2 2010, we had a cash, cash equivalents and restricted cash
balance of $131.9 million, with no debt. This represents a decrease of $6.4
million over the cash and cash equivalents and restricted cash balance of
the prior quarter and an increase of $88.4 million over the cash and cash
equivalents and restricted cash balance at the end of Q2 2009. In
September 2009 net proceeds of $59.7 million were raised from an
international equity offering which contributed to the increase in cash
balances over the prior 12 months.
At the end of Q2 2010, our inventory level was $26.1 million, an increase
of $4.9 million over the prior quarter, in line with the increased seasonal
demand as we enter Q3 2010.
OPERATIONAL OVERVIEW
During the quarter, we have been commended by many of our customers for
excellence in delivery performance as we continued the steep ramp in
production with our manufacturing partners support. Our revenue was driven
by our customers' success with portable devices, including smartphones,
HSPA-3G cellphones, converged media devices and portable media players.
Additionally we saw an increased demand for our products within the
Automotive and Industrial segment. We continued to execute on our strategy
of broadening custom design wins across multiple platforms within our
existing customers while diversifying to new customers with our increasing
range of power management and audio standard products.
In Q2 2010, we added two significant new processor vendors to our partner
program, and already have working evaluation platforms developed and early
customer engagements. These platforms will be launched in the next months
and we expect will contribute to revenue in 2011. Through co-operating
with our processor partners and leveraging their channels to market, we are
now engaging with new customers and winning designs across many new
portable device platforms. Configurable power management - a concept Dialog
was first to introduce in 2009 - is clearly gaining industry adoption,
evidenced by these design wins.
Our audio codecs are proven to have the lowest power consumption for
portable applications with multiple designs wins at customers including two
major reputable consumer brands in the audio industry.
Dialog's SmartXtend(TM) PM OLED display driver remains on track. Together
with our first two module partners, we are sampling cellphone and portable
device customers with engineering prototypes while we continue to optimize
for maximum production yields and performance. Additionally, we expect to
add a third module partner in the next months.
In the industrial and infotainment market, we have begun shipping
engineering samples of a new power management and clocking device for the
next generation of the Intel Atom platform and already have very high
interest and multiple designs wins for this product.
In recent quarters, we have focused on bringing our Automotive technology
to suppliers outside Europe. We are seeing the first signs of success with
our highly integrated motor controller ASSPs, which are now currently under
detailed evaluation for electric window/sunroof and windscreen wiper
applications at Japanese and Korean automotive suppliers for 2012
production.
OUTLOOK
We are seeing continued strong demand for our products from our customers.
Our Q3 2010 revenue is expected to be in the range of $72.0 to $77.0
million, maintaining our upward trajectory of quarterly year over year
growth since Q4 2007 and a sequential increase over the prior quarter.
However, our industry is now showing signs of foundry and backend supply
constraints which may affect our end customer build rate and limit our
revenue upside and potentially margin levels for 2010. We maintain our
outlook for the full year and remain confident in our ability to grow our
revenue faster than the broader market and to deliver a successful result
for 2010.
Dialog Semiconductor invites you today at 08.30 am (London) / 09.30 am
(Frankfurt) to listen in a live conference call to management's discussion
of Q2 2010 performance, as well as guidance for financial 2010. To access
the call please use the following dial-in numbers: Germany: 0800 101 2072,
UK: 0800 358 0886, US: 1 877 941 2927, with no access code 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 143103# (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 2 July 2010 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 Strasse Matt Dixon Lucie Maucher
D-73230 Kirchheim/Teck T +44 20 7269 7214 T +49 69 920 37 183
Germany matt.dixon@fd.com lucie.maucher@fd.com
T: +49 7021 805 412
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.
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 motor 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 2009, it recorded $218 million in
revenue and was one of the fastest growing European public semiconductor
companies. It currently has approximately 370 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 supersede any
previous statement.
20.07.2010 07:35 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: 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: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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DGAP-Adhoc: Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR ANNOUNCES ITS RESULTS FOR THE SECOND QUARTER OF 2010
| Source: EQS Group AG