Dialog Semiconductor Plc. / Key word(s): Final Results
10.02.2011 07:30
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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DIALOG SEMICONDUCTOR REPORTS FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2010
RESULTS
The Company maintains revenue growth momentum with record revenue for both
Q4 2010 and FY 2010; delivering 36% year-on-year revenue growth
Kirchheim/Teck, Germany, 10 February 2011 - Dialog Semiconductor plc (FWB:
DLG), a leading provider of power management semiconductor solutions today
reports results for Q4 and audited results for the financial year ended 31
December 2010.
In addition, Dialog announces today the acquisition of SiTel Semiconductor
B.V. ('SiTel') for an enterprise value of $86.5 million(â¦). SiTel is a
leader in short-range wireless, digital cordless and VoIP technology. The
acquisition will add short-range wireless connectivity to Dialog's existing
power management technology portfolio, both expanding the Company's
portable device product range and providing access to major new customers.
Further details on the acquisition have been provided in a separate
announcement.
Q4 AND FINANCIAL YEAR 2010 FINANCIAL HIGHLIGHTS
- Revenue for Q4 2010 was $87.6 million, an increase of 10.2% over the
prior quarter and 12.9% on Q4 2009. For the financial year, revenue was
$296.6 million representing an increase of 36.3% over financial year
2009
- For the financial year 2010, gross margin was 46.3%, representing an
increase of 1.4 percentage points year-on-year
- Cash, cash equivalents and restricted cash of $158.2 million, an
increase in Q4 2010 of $12.6 million over the prior quarter and an
increase of $35.1 million over financial year 2009
- For the financial year 2010, IFRS Operating Profit was $45.3 million or
15.3% of revenue with underlying(*) Operating Profit of $56.2 million
or 19.0% of revenue
- Full year 2010 IFRS diluted earnings per share of 66 cents and
underlying(*) diluted earnings per share of 82 cents
(â¦) net cash paid of $84.5m
(*) Underlying results are based on IFRS, adjusted to exclude share-based
compensation charges (FY 2010: $10.9 million; FY 2009: $2.8 million; Q4
2010: $4.3 million; Q4 2009: $1.9 million) including associated social
security costs (FY 2010: $6.6 million; FY 2009: $1.4 million; Q4 2010: $3.0
million; Q4 2009: $1.4 million). The term 'underlying' is not defined in
IFRS and therefore may not be comparable with similarly titled measures
reported by other companies. Underlying measures are not intended as a
substitute for, or a superior measure to, IFRS measures.
Q4 AND FINANCIAL YEAR 2010 OPERATIONAL HIGHLIGHTS
- Extended Dialog's market leadership position in Power Management to the
Tablet PC market: an exciting and additive new market to Smartphones
which has emerged in 2010
- Continued standard product portfolio expansion, with new products
launched across all business segments
- Early success in audio, with design wins across Sony Corporation and at
Samsung Electronics
- Customer diversification efforts successfully continued, with new
customers for both custom and standard products added in 2010
- Strong recovery of the Automotive and Industrial segment during 2010
- 2010 Winners of Global Semiconductor Association 'Outstanding European
Fabless Company' award for the second consecutive year
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Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'We are extremely pleased with our record revenue performance in the fourth
quarter, rounding off what has also been a record financial year for our
company. Our continued commitment to technology innovation and first-class
product execution, coupled with a sharp focus on gaining market share in
high-growth portable markets has enabled Dialog to record revenue growth,
well in excess of 30% for the third consecutive year, outpacing the wider
market and our peers.
During 2010 we have focused our efforts on increasing market share within a
broader base of Smartphone customers, in addition to extending Dialog's
Power Management leadership to the fast growing Tablet PC market. We have
also reinforced our customer relationships with both new custom product
development and innovative standard products and further strengthened our
already robust balance sheet. This, coupled with a strong customer
opportunity pipeline, underlines our confidence in continuing business
growth momentum for Dialog.'
FINANCIAL OVERVIEW
Revenue in Q4 2010 was $87.6 million representing a sequential increase of
10.2% on the $79.5 million of revenue delivered in Q3 2010 and an increase
of 12.9% over the $77.6 million delivered in the comparative period last
year. For the financial year 2010 revenue was $296.6 million: an increase
of 36.3% over 2009.
For the financial year 2010, gross margin was 46.3%: an increase of 1.4
percentage points over financial year 2009. Gross margin in Q4 was 44.9%,
representing a decrease of 1.4 percentage points over the 46.3% achieved in
the prior quarter. This decrease can mainly be attributed to the
particular product mix shipped during the quarter and ongoing supply
constraints.
R&D and SG&A in Q4 2010 stood at 17.9% and 12.3% of revenue respectively,
compared to 18.1% and 10.8% in the prior quarter. For the financial year
2010, R&D and SG&A were lower at 19.0% and 11.8% of revenue compared to
19.6% and 12.3% in 2009.
Our operating expenses increased in Q4 2010 by $3.5 million over the prior
quarter to $26.4 million. These operating expenses, both in Q4 2010 and
financial year 2010, included a net charge of $4.3 million and $10.9
million respectively for share-based compensation and employment-related
tax (Q4 2009: $1.9 million, FY2009: $2.8 million). Q4 2010 included a net
$3.0 million additional charge resulting from a 42% increase in our share
price during that period and additional option grants. Q4 2010 also
benefitted from a positive change in social charge contributions which
reduced the charge by $0.9 million.
Operating Profit on an IFRS basis in Q4 2010 was $12.9 million or 14.8% of
revenue. This compares to the $13.9 million or 17.4% of revenue delivered
in the prior quarter and the $14.2 million or 18.3% of revenue delivered in
Q4 2009. For the financial year, IFRS Operating Profit was $45.3 million or
15.3% of revenue. This compares to $28.7 million or 13.2% of revenue in
financial year 2009. Excluding the share-based compensation impact, the
underlying(*) Operating Profit achieved in Q4 2010 was $17.3 million or
19.7% of revenue, compared with the underlying(*) Operating Profit of 20.8%
of revenue in Q4 2009. For financial year 2010 the underlying(*) Operating
Profit was $56.2 million or 19.0% of revenue compared to 14.5% in 2009.
2010 taxable profits continued to benefit from the utilisation of
brought-forward tax losses resulting in a residual minimum level current
tax charge, mainly applicable to taxable profits in Germany, of $5.3
million. Additionally 2010 included a deferred tax benefit of $3.5 million
from further recognition of a proportion of the deferred tax assets
principally relating to carried forward losses. In total a net tax charge
of $1.8 million was recorded in 2010. Consequently, the overall effective
tax rate for the financial year 2010 was 4.0%.
In Q4 2010, on an IFRS basis net income was $13.0 million or 21 cents per
basic share and 20 cents per diluted share. This compares to 22 cents per
basic share and 20 cents per diluted share delivered in the prior quarter
and 34 cents and 31 cents in Q4 2009. For the 2010 financial year, net
income was $42.5 million or 70 cents per basic share and 66 cents per
diluted share compared to $32.7 million and basic and diluted earnings per
share of 67 cents and 60 cents recorded in 2009. The underlying(*) earnings
per share (diluted) in Q4 2010 was 26 cents and 82 cents for financial year
2010. This compares to 34 cents in Q4 2009 and 65 cents for financial year
2009.
At 31 December 2010, the Company's cash, restricted cash and cash
equivalents balance stood at $158.2 million, with no debt. This represents
an increase of $12.6 million over that of the prior quarter and an increase
of $35.1 million for the financial year. In addition, Dialog has recently
put in place an additional revolving credit facility of $35.0 million for
general corporate purposes.
At the end of Q4 2010, our inventory was $40.7 million or 76 days
outstanding (Q3 2010: 79 days). This represents an increase of $3.0
million over the prior quarter and a level appropriate to service 2011
first half demand.
OPERATIONAL OVERVIEW
We have continued to execute our growth strategy successfully this year,
both extending our product portfolio and extending our reach into new
customers and new growth markets.
Within the wireless segment, our design win momentum within portable
devices has continued in 2010, including major design wins not only in
Smartphones but also within Tablet PCs, MP3 players and other portable
devices. We view the Tablet PC market, which has emerged strongly in 2010,
as an additive and exciting market to Smartphones and one which fits
perfectly with our expanding product portfolio.
Expansion of our portfolio to include more standard products has also
continued in 2010 with our launch of new standard product families. These
launches have included a new Intel(R) Atom(TM) companion device for the
latest Atom E6xx series as well as a second generation of configurable
power management ICs. We have also expanded the Industry's lowest power
audio codec suite of products and developed an exciting industry-first
'2d-3d' video conversion IC for Tablet PCs and Smartphones. These products
map closely with consumer and manufacturer demands and provide us with a
platform for continued future revenue growth.
Our SmartXtend(TM) passive matrix OLED developments remain on track for
industry adoption within the portable device and cellphone markets. The
characteristics of transparency and flexible displays are proving to be
strong differentiators for early niche volume cell phone customers, with
the first such customer phones expected in the Asian market within Q1 2011.
2010 also saw the recovery of our Automotive and Industrial segment with
revenues reaching a record high. During the year, we were also successful
in adding a new Japanese motor controller customer. The transition to an
increasing use of energy-saving lighting, including LEDs, is also providing
an opportunity for Dialog to further build on its existing lighting
business for the future.
In recognition of the many operational achievements this year, Dialog was
once again awarded the Global Semiconductor Association's prestigious
'Outstanding European Semiconductor Company' award for the second
consecutive year.
We continue to execute our strategy successfully, both to further
strengthen our technology leadership and to expand our addressable market.
Pursuant to this strategy, and as announced separately today, we have
acquired SiTel: a leader in short-range wireless, digital cordless and VoIP
technology. SiTel's technology and platform represent a complementary and
exciting opportunity to address these adjacent portable device markets,
both in order to develop new products as well as to cross-sell Dialog's
existing Power Management technology to SiTel's customer base.
OUTLOOK
We expect to maintain our strong revenue momentum in financial year 2011
and, at this stage in the year, we expect organic full year revenue growth
- excluding any impact from the acquisition of SiTel announced today - to
be in line with current market expectations.
For Q1 2011 - excluding any impact from the acquisition of SiTel announced
today - we expect significant year-on-year growth to continue and to
deliver revenue in the range of $77-$82 million.
The unaudited results of SiTel for the year ended 31 December 2010 showed a
turnover of $116.9 million (2009: $109.6 million) with a 42.4% gross
margin. SiTel's results will be consolidated with those of the existing
Dialog business from the date of acquisition. The SiTel acquisition is
expected to be accretive in Q3 2011 and we are confident in our ability to
improve SiTel's growth and profitability in the medium term.
With the inclusion of SiTel in 2011, the enlarged group is expected to show
some reduction in gross margin. We anticipate the industry supply
constraints we saw in Q4 2010 to persist as we continue to participate in
increasingly higher volume customer engagements.
We will give further guidance on the expected results of the enlarged
group, including SiTel as part of our Q1 2011 results announcement.
We remain confident in our ability to deliver a successful result for 2011.
Dialog Semiconductor's financial performance for Q4 2010 and FY 2010 is
summarised below:
|[![CDATA[|[pre|]]]|]
Q4 2010 Q4 2009
US$000 IFRS adjust- Under- IFRS adjust- Under-
ment lying *) ment lying *)
Revenues 87,565 - 87,565 77,590 - 77,590
Cost of sales (48,232) 132 (48,100) (40,369) 52 (40,317)
Gross profit 39,333 132 39,465 37,221 52 37,273
Selling and
marketing
expenses (4,998) 620 (4,378) (5,148) 173 (4,975)
General and
administrative
expenses (5,761) 2,208 (3,553) (4,571) 998 (3,573)
Research and
development
expenses (15,648) 1,374 (14,274) (13,315) 706 (12,609)
Restructuring
expenses (9) - (9) - - -
Operating
profit 12,917 4,334 17,251 14,187 1,929 16,116
Interest income
and other
financial
income 192 - 192 129 - 129
Interest expense
and other
financial
expense (27) - (27) (31) - (31)
foreigen currency
exchange gains and
losses, net (623) - (623) (88) - (88)
Result before
income taxes 12,459 4,334 16,793 14,197 1,929 16,126
income tax
benefit 570 - 570 5,691 - 5,691
Net profit 13,029 4,334 17,363 19,888 1,929 21,817
Earnings per
share (in US$)
Basic 0.21 0.07 0.29 0.34 0.03 0.37
Diluted 0.20 0.07 0.26 0.31 0.03 0.34
2010 2009
US$000 IFRS adjust- Under- IFRS adjust- Under-
ment lying *) ment lying *)
Revenues 296,597 - 296,597 217,613 - 217,613
Cost of sales (159,334) 460 (158,874) (119,886) 139 (119,747)
Gross profit 137,263 460 137,723 97,727 139 97,866
Selling and
marketing
expenses (17,391) 1,603 (15,788) (14,183) 405 (13,778)
General and
administrative
expenses (17,471) 5,305 (12,166) (12,584) 1,023 (11,561)
Research and
development
expenses (56,465) 3,485 (52,980) (42,621) 1,246 (41,375)
Other operating
income - - - 333 - 333
Restructuring
expenses (595) - (595) - - -
Operating
profit 45,341 10,853 56,194 28,672 2,813 31,485
Interest income
and other
financial
income 1,130 - 1,130 203 - 203
Interest expense
and other
financial
expense (120) - (120) (212) - (212)
Foreigen currency
exchange gains and
losses, net (2,088) - (2,088) 162 - 162
Result before
income taxes 44,263 10,853 55,116 28,825 2,813 31,638
Income tax benefit
(expense) (1,784) - (1,784) 3,902 - 3,902
Net profit 42,479 10,853 53,332 32,727 2,813 35,540
Earnings per
share (in US$)
Basic 0.70 0.18 0.88 0.67 0.06 0.73
Diluted 0.66 0.17 0.82 0.60 0.05 0.65
|[![CDATA[|[/pre|]]]|]
Main Conference Call on Thursday 10th February at 09:30 CET / 08:30 UK
Dialog Semiconductor invites you to listen in a live conference call to a
management discussion on the acquisition, the Q4 2010 and full year 2010
performance. To access the call please use the following dial-in numbers:
Germany +49 (0) 6103 485 3000, UK +44 (0) 207 153 2027, USA +1 480 629
9725, with no access code required. An instant replay facility will be
available for 30 days after the call and can be accessed at +49 (0) 69 589
990 568 with access code 4402293#. 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 Conference Call for US investors and analysts at 17:00 CET /
11:00 Eastern Time
An additional live conference call for the benefit of US-based investors
and analysts will be held at 17:00 (CET) / 11.00 Eastern Time. To access
the call please dial +1 877 941 8633, with no access code required.
Additional information to this adhoc 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 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 StraÃe 95 Matt Dixon Ivo Lingnau
D-73230 Kirchheim/Teck T +44 20 7269 7214 T +49 69 920 37 133
Germany matt.dixon@fd.com ivo.lingnau@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.
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 2010, it had $296.6 million in
revenue and was again one of the fastest growing European public
semiconductor companies. It currently has approximately 400 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.
Ends
10.02.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR REPORTS FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2010 RESULTS
| Source: EQS Group AG