Dialog Semiconductor Plc. / Quarter Results
27.10.2009
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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Record results in third quarter with $59 million revenue, achieving 31%
growth over the second quarter of 2009
Kirchheim/Teck, Germany, 27th October 2009 - Dialog Semiconductor plc (FWB:
DLG), a leading provider of high integrated innovative Power Management
Semiconductor solutions, today reports results for its third quarter ending
25th September 2009.
Q3 2009 Financial Highlights
- Revenue for Q3 2009 was $59.0 million, an increase of 31% over the
prior quarter and 34% over the corresponding quarter of 2008
- Net profit in Q3 2009 of $8.8 million or 14.8% of revenue compared to
$3.3 million in prior quarter, our eighth successive quarter of
profitability
- Diluted and Basic earnings per share of 18 cents and 19 cents
respectively
- Total cash increased in Q3 2009 by $2.9 million to stand at $46.4
million
- Subsequent to quarter end, Dialog received approximately $59.8 million
proceeds from an international equity offering
- Inclusion in the German technology TecDAX index
Q3 2009 Operational Highlights
- Strategic entrance to audio market with the launch of the DA7210 -
first product from a family of new ultra low power and high quality
audio products
- Cooperation with NEC Electronics for a platform to enable rapid
prototyping of smartphones and portable media devices
- Continued ramp of our power management technology into leading
smartphone manufacturers' products
- First DA6001 engineering samples shipped of a power management
companion device for Intel's(R) Atom(TM) processor - to Harman Becker
for Infotainment and announcement of continued collaboration
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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 continued its growth momentum in the third quarter where we
experienced strong demand for our power management products. Dialog's
strategy combined with solid execution are yielding positive operating
results for the company as we continue to increase our market share.
I am very pleased that these positive results today are being enjoyed by
both long-standing and new Dialog shareholders. During the quarter, we
embarked on a very successful international equity offering and have been
able to attract a significant number of new Tier 1 institutional funds to
our shareholder base in addition to increasing our trading liquidity.'
FINANCIAL OVERVIEW
Revenue in Q3 2009 was $59.0 million, an increase of 31% over the $45.0
million in the prior quarter and an increase of 34% on the $44.0 million of
revenue delivered in the corresponding quarter of 2008.
Gross margin for the third quarter was 45.3%, representing a decrease of
0.4 percentage points over that achieved in the prior quarter and an
increase of 4.4 percentage points over that achieved in Q3 2008. The gross
margin in the prior quarter was positively impacted by $2.0 million or 2.4
percentage points due to a cash settlement received from the BenQ
insolvency.
In Q3 2009, net profit was $8.8 million or 18 cents and 19 cents per
diluted and basic share respectively, our eighth consecutive quarter of
profitability. This compares to a net profit of $3.3 million or 7 cents per
share (diluted and basic) in the prior quarter and to a net profit of $1.9
million or 4 cents per share (diluted and basic) delivered in Q3 2008.
At the end of Q3 2009, we had a cash, cash equivalents and restricted cash
balance of $46.4 million. This represents an increase of $2.9 million over
the cash, cash equivalents and restricted cash balance at the end of Q2
2009 and an increase of $9.5 million over the cash and cash equivalents
balance at the end of 2008.
At the end of Q3 2009, our inventory level was $26.2 million, an increase
of $7.2 million over the prior quarter. This increase is in line with the
increased seasonal demand for our products as we enter Q4 2009. During Q3
2009, we continued to tightly manage our Operating Expenses achieving an
SG&A rate of 10% and R&D rate of 19% of revenue.
The effective tax rate for year to date was 12.2%. Going forward, we will
consider whether it is appropriate to utilise currently unrecognised
deferred tax assets against future identifiable taxable profits which would
then offset the effective tax charge for the full year 2009.
Following a long standing commitment to Dialog, Apax Partners LLP - the
global private equity advisory firm that led the leveraged buyout of the
Company in 1998 - 18.3 percent shareholding of Dialog was placed with
quality institutional investors during Q3 2009.
An international equity offering was launched during the quarter, with the
subscription being approximately 3 times oversubscribed. 12 million new
ordinary shares were priced at EUR3.65, representing a premium of 4 percent
to the price on the offer announcement date. The shares were placed with a
number of Tier 1 institutional investors. Subsequent to shareholder
approval at a General Meeting, proceeds of approximately $59.8 million were
received in October. The proceeds from the offering will be used to expand
our design and technical support teams, particularly in the US and Asia;
acquire complementary technology and intellectual property; and increase
our working capital resources to fund future growth.
During Q3 2009, Dialog has been included in the TecDAX index. This index
tracks the 30 most actively traded technology companies, excluding those
listed in the German DAX index and is amongst the most important and
leading stock indices in Germany.
OPERATIONAL OVERVIEW
WIRELESS
Globally, the transition to smartphones continues at a rapid pace. We are
benefiting from this transition through our participation with three
leading vendors. As 3G technology continues to be aggressively promoted
worldwide by the carriers, both in cellphones and data modems for netbook
type products, our 3G/HSPA platform business also saw increased shipments
during the quarter. Additionally, we experienced typically strong seasonal
demand for our portable media products.
As a result of a strategic initiative to expand our product portfolio,
during the period we launched the DA7210 - a standalone audio device. This
is the first member of a family of new ultra low power audio products which
are currently under development. Expansion into the audio segment
significantly expands the addressable market for our mixed signal
technology and allows us to offer our customer a new class of audio
technology, combined with and built upon our power management expertise.
First engineering samples are already under evaluation at key lead
customers.
Our Smartxtend(TM) passive matrix OLED developments remain on track for
industry adoption within the portable device and cellphone markets. We
expect to sample our first customers in Q4 2009.This technology delivers a
strong value proposition over traditional TFT LCD displays and active
matrix OLED competing technologies. Dialog maintains its early leadership
for e-paper/e-ink display based products, winning designs in innovative
portable applications.
AUTOMOTIVE & INDUSTRIAL
During the third quarter we experienced some recovery in our automotive
business. Given our current visibility, we expect shipment to grow in Q4
reaching our historical levels of sales. However, overall the longer-term
visibility in the automotive market still remains low.
We announced that the first engineering samples were shipped to Harman
Becker of the DA6001 power management and clocking IC as a companion device
for the Intel (R) Atom(TM) processor. This will be used in Harman Becker's
automotive infotainment systems and is the highest integrated solution
available on the market, offering significant cost and board space savings.
Additionally, our plan to continue collaborating with Harman Becker on a
'next generation' device supporting Intel's forthcoming Atom processor was
also announced.
OUTLOOK
As we enter our traditionally strong seasonal fourth quarter, Dialog
continues to see increasing demand for its products used in smartphones and
portable media devices, in addition to resurgence in demand for automotive
related products. We maintain the outlook issued on October 12th 2009 in
our trading update and believe that revenue and operating profit for the
full year 2009 should break through the $200 million and 10% margin levels
respectively.
Dialog Semiconductor invites you today at 11 am CET to listen in a live
conference call to management's discussion of Q3 2009 performance, as well
as guidance for financial 2009. To access the call please use the following
dial-in numbers: Germany: +44 (0)1452 569 393, UK: 0845 146 2004, US: 1 866
434 1089 with conference ID for all countries 35980584 required. An instant
replay facility will be available for 30 days after the call and can be
accessed at +44 (0)845 245 5205 with access code 35980584. 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 25th September 2009 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/ Claudine Schaetzle/
D-73230 Kirchheim/Teck Erwan Gouraud Lucie Kimmich
Germany T +44 20 7831 3113 T +49 69 920 37 185
dialog@fd.com dialog@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 2008, it had more than $160
million in revenue and was the fastest growing European public
semiconductor company, achieving a growth rate of more than 85%. It
currently has approximately 325 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 supercede any
previous statement.
27.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/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 Third Quarter of 2009
| Source: EQS Group AG