Dialog Semiconductor Plc. / Quarter Results
22.07.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Kirchheim/Teck, Germany, 22 July 2008 Dialog Semiconductor plc (FWB:
DLG), a leading provider of power management semiconductor solutions
announces its results for the second quarter of 2008.
OVERVIEW
Growing revenues and profitability
- Q2 2008 revenue stands at US$34.4m, up 9.3% on the previous quarter and
up 148% on Q2 2007 (Q1 2008: US$31.5m / Q2 2007: US$13.9m)
- Net profitability maintained with net profit of US$271,000 (Q1 2008:
US$68,000 / Q2 2007: US$6.8m net loss)
- Q2 2008 gross margin increased to 35.4% (Q1 2008: 33.5% / Q2 2007:
21.4%)
- Liquid asset balances stand at US$27.4m at end of Q2 2008 (Q1 2008:
US$28.6m)
- Dialog remains well positioned to deliver significant revenue growth
through H2 2008
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Information and Explaination of the Issuer to this News:
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'I am very pleased to report continued growth momentum at Dialog. We have
launched key new products and target new markets. Our improved financial
performance is testament to the commitment of our people and is further
proof of the importance of mixed signal power management technology in
todays personal mobile marketplace.
We have executed to our plans and have now delivered three consecutive
profitable quarters. Whilst general economic conditions remain uncertain,
we anticipate an acceleration in profitability based upon a significant
growth in revenues during H2 2008. Our level of confidence in achieving our
expectations for the current year has increased as we continue to grow
revenues from our wider customer base'.
OPERATIONAL HIGHLIGHTS
During Q2 2008 we have continued to build on the good momentum demonstrated
right across our business in the opening months of the year. We have
remained focused on our core strategy, namely: to add value to our
customers products through a commitment to excellence in power management.
This has been particularly evident in our Wireless segment this quarter,
where we have further increased our number of new mobile phone design wins,
primarily through the deployment of our range of 3G/HSDPA integrated audio
and power management chips. During Q2 2008, and as expected, we commenced
shipment of a new mixed-signal product for a new, high profile Tier 1
smart phone customer for which we expect production volumes to accelerate
during the second half of this year.
We are also pleased to have established traction during the period with a
number of major customers in Asia. We currently expect to recognise
revenue from these customers from Q4 2008 onwards. Asian markets represent
an exciting opportunity for Dialog and, to that end, we announced earlier
this month our establishment of a new country manager and sales office in
Seoul, Korea. We intend to continue growing our business in the Korean
marketplace with a dedicated sales and technical support team.
The consumer application area remains a growth target for Dialog and we are
pleased with the progress we are making with a number of customer
opportunities in this area. In particular, following detailed evaluation,
we anticipate our new power management products to be selected for a new
generation of hand held consumer applications, scheduled for production in
2H 2008.
Our Automotive and Industrial segment performed in line with our
expectations during Q2 2008 and we continue to see new opportunities for
our business in smart system on chip (S-O-C) applications for intelligent
motor control and sensing applications. In addition, Dialog is making good
progress in the development of new technologies that will help us to
compete for engagements in the next generation of in-car infotainment
products.
As indicated earlier in the year, Dialog is developing highly
differentiated products for new and emerging always-on, low-power display
technologies. Since the start of 2008 we have promoted heavily our new
capability in this space in the shape of an optimised low power driver for
Passive Matrix OLED technology. Our low power driver technology has
attracted the attention of key display module makers as well as end product
equipment manufacturers. We anticipate that our first integrated
technology demonstrator chips will commence sampling in Q3 2008.
Our new portfolio of display products including e-paper and MEMS based
display drivers remain on track to start contributing early customer
revenue in the second half of 2008, with further growth expected through
2009.
FINANCIAL HIGHLIGHTS
We have continued to make gains financially as well as operationally during
the quarter. At the close of Q2 2008, revenue for the quarter stands at
US$34.4m. This represents a further 9.3% increase on our Q1 revenue
performance, as well as a 148% improvement on the comparative performance
in Q2 2007 (Q1 2008: US$31.5m / Q2 2007: US$13.9m).
Importantly, through ongoing improvements in our product mix and as a
result of our continued focus on cost control, we have managed to maintain
momentum this quarter in our profit performance, delivering a net Q2 2008
profit of US$271,000 (Q1 2008: US$68,000 / Q2 2007: (net loss US$6.8m)).
As outlined in our Q1 2008 results, we maintain our focus this year on
delivering greater gross margin improvements across our business. We are
pleased to report gross margin for Q2 2008 of 35.4% which is both an
improvement on our Q1 2008 margin performance (Q1 2008: 33.5%) as well as
almost 2.0 percentage points higher than the average gross margin range of
33.4% recorded for the prior financial year. We will continue to seek
further improvements during the second half of 2008.
Dialogs cash and securities balance stand at US$S27.4m at the end of the
period.
OUTLOOK
We are pleased to have delivered three consecutive profitable quarters.
Whilst general economic conditions remain uncertain, we anticipate an
acceleration in profitability based upon a significant growth in revenues
during H2 2008. Our level of confidence in achieving our expectations for
the current year has increased as we continue to grow revenues from our
wider customer base.
Information about Dialog Semiconductor
Dialog Semiconductor develops and supplies power management, audio and
display driver technology, targeting the wireless and automotive and
industrial segments. The companys expertise in mixed signal design, with
products manufactured entirely in CMOS technology, enhances the performance
and features of wireless, hand-held and portable electronic products. Its
technology is also used in intelligent control circuits in automotive and
industrial applications. Dialog Semiconductor plc is registered in England
and is listed on the Frankfurt (FWB:DLG) stock exchange. The company has
operating facilities in Germany, the UK, the USA, Austria, Japan, Taiwan
and Korea.
Forward Looking Statements
This press release contains 'forward-looking statements' that reflect
managements 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 Semiconductors 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.
For further information:
Dialog Semiconductor
Neue Straße 95
D-73230 Kircheim/Teck
Deutschland
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
FD London
Matt Dixon
T +44 20 7269 7214
matt.dixon@fd.com
A&B FD - Frankfurt
Claudine Schaetzle
T +49 69 920 37 185
c.schaetzle@abfd.de
DGAP 22.07.2008
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Language: English
Issuer: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
Großbritannien
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, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-Adhoc: Dialog Semiconductor reports results for the second quarter 2008
| Source: EQS Group AG