DGAP-News: DIALOG SEMICONDUCTOR REPORTS FIRST QUARTER RESULTS ENDED 29 MARCH 2013.Company delivers first quarter year on year revenue growth of 8% and year on year gross margin improvement.
(firmenpresse) - DGAP-News: Dialog Semiconductor Plc. / Key word(s): Quarter
Results/Quarter Results
DIALOG SEMICONDUCTOR REPORTS FIRST QUARTER RESULTS ENDED 29 MARCH
2013.Company delivers first quarter year on year revenue growth of 8%
and year on year gross margin improvement.
08.05.2013 / 07:25
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Kirchheim/Teck, Germany, 8 May 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
first quarter ending 29 March 2013.
Q1 2013 financial highlights
- Revenue up 8% over Q1 2012 at $180 million
- Gross margin up 120bps over Q1 2012 at 38.1%
- Underlying (*) EBITDA (**) at $27.1 million or 15.1% of revenue
- IFRS operating profit (EBIT) up 5% over Q1 2012 to $16.6 million or
9.2% of revenue
- Connectivity segment was near break even on an IFRS basis and
profitable on an underlying(*) basis
- IFRS basic and diluted EPS of 15 cents, down 3 and 2 cents respectively
on Q1 2012. Underlying(*) basic and diluted EPS of 21 cents, down 5 and
4 cents respectively on Q1 2012
- Cash generated from operations at $20.4 million. Cash and cash
equivalents balance as of 29 March 2013 increased by $6.2 million to
$318.6 million from Q4 2012
Q1 2013 operational highlights
- Continued power management smartphone and tablet design win momentum,
across new platforms and models of our largest clients
- Continued the diversification of our client footprint with a third
smartphone platform win with Samsung
- Broadening our product portfolio with the launch of the first
multi-touch IC SmartwaveTM , enabling multi-touch experience at a price
point affordable for UltrabooksTM
- As part of the Partner Processor Programme we expanded our
collaboration with Intel for the development of a single-chip power
management IC (PMIC) for the Bay Trail platform targeting the tablet
market
- New Asia based smartphone chipset partner selected our power-management
IC (PMIC) to be part of their reference design targeting the Chinese
market
- The migration to 0.13nm BCD technology continued according to plan and
we anticipate first products will be available for sampling by Q4 2013
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'I'm very pleased to report a good set of results delivering year on year
revenue growth and gross margin improvement. During the quarter we
continued to diversify our customer base and brought exciting innovation to
the market. The launch of our first multi-touch IC SmartwaveTM and the
collaboration with Intel in the Bay Trail are important milestones in our
strategic route map.'
'Dialog is in an excellent position to continue its success story in 2013.
Our team continues to push the diversification drive through sustained
investment in R&D innovation, close collaboration with our partners and
customers and through selected acquisitions and strategic co-operations.'
Outlook
In Q2 2013, we expect revenue for the quarter to be in the range of $140 to
$155 million as a result of unit sales softness.
On the basis of the revenue outlook forQ2 2013 we expect gross margin to
be flat to marginally below Q1 2013. However, gross margin is expected to
improve incrementally through the second half of 2013 and grow year on
year.
Given the visibility we have, we remain confident about the Company's
revenue growth for the full year, anticipating a much stronger second half
driven by ramp of high volume new products.
Financial overview
IFRS First Quarter
US$ million 2013 2012 % Var.
Revenue 180.0 166.3 +8%
Gross Margin 38.1% 36.9% +120bps
R&D % 20.1% 17.2% +290bps
SG&A % 1 8.7% 10.4% (170)bps
EBIT 1 16.6 15.7 +5%
EBIT % 1 9.2% 9.5% (30)bps
Net income 1 9.9 11.6 (15)%
Basic EPS $ 1 0.15 0.18 (17)%
Diluted EPS $ 1 0.15 0.17 (12)%
Operating cash flow1 20.4 35.8 (43)%
Underlying First Quarter
US$ million 2013 2012 % Var.
Gross Margin 38.2% 37.3% +90bps
EBITDA 1 27.1 27.1 0%
EBITDA % 1 15.1% 16.3% (120)bps
EBIT 1 18.9 21.5 (12)%
EBIT % 1 10.5% 13.0% (250)bps
Basic EPS $ 1 0.21 0.26 (19)%
Diluted EPS $ 1 0.21 0.25 (16)%
1 Q1-2012 numbers have been adjusted following a revised treatment of
transactions costs for the Convertible Bond. For further information please
refer to our Q2-2012 report in which this was reported as prior period
adjustment http://www.dialog-semiconductor.com/investor-relations/reports-f
ilings/quarterly-reports
Revenue in Q1 2013 was up 8% at $180 million. This was a very positive
performance against a strong Q1 2012, when we saw strong momentum from
recently introduced products. Mobile Systems segment revenue was up 14%
over Q1 2012.
As previously indicated, Q1 2013 gross margin was marginally below Q4 2012
at 38.1% and 120bps above Q1 2012. This marginal decline is the result of
the lower revenue in the quarter and the subsequent higher allocation per
unit of the fixed component of Cost of Sales - or Cost of Goods Sold
(COGS). The collaboration with our foundry partners to gradually improve
our manufacturing process continued throughout the quarter and we made good
progress towards our goal to increasing yields and material cost
reductions. As a result of these initiatives, we continue to expect gross
margin improvement for the full year 2013.
R&D investment in Q1 2013 stood at 20.1% of revenue, 290 bps over Q1 2012
and representing an increase of 4% over Q4 2012. On a trailing twelve
months basis R&D was 17.2% of revenue or 50bps above Q1 2012. The strong
investment in R&D resources and projects is an important part of the
company's strategy to accelerate diversification of its product portfolio,
to address new market applications and broaden its customer base. We are
confident about our product pipeline and we expect to launch new products
through 2013.
SG&A in Q1 2013 stood at 8.7% of revenue, 170bps below Q1 2012. During the
quarter we maintained best in class SG&A levels on IFRS and underlying
basis. In addition to maintaining this high level of efficiency during the
quarter we saw lower amortisation expenses relating to the purchase price
allocation from the SiTel acquisition and lower national insurance costs
associated with share based payment charges.
EBIT for Q1 2013 was up 5% to $16.6 million, the highest everfirst quarter
on record. At the end of Q1 2013 the Connectivity segment was near break
even on an IFRS basis and was profitable on an underlying basis. This is
the positive outcome of all the initiatives we took during 2012 to increase
supply chain efficiencies and re-focus on higher margin business
opportunities.
A net tax charge of $4.2 million was recorded in Q1 2013. This is in line
with our February guidance, representing a 30% effective tax rate. This
rate is above the effective tax rate for Q1 2012 of 27%. We expect the tax
rate to peak in 2013 at around 30%.
IFRS net income was $9.9 million, 15% below Q1 2012. This drop was the
result of higher interest expenses in connection with the measurement of
the financial liability from the convertible bond and the indicated
increase in the tax rate to 30% (Q1 2012: 27%). On an underlying basis Q1
2013 net income was below Q1 2012 as a result of the sustained investment
in R&D in line with our strategic growth and diversification objectives.
IFRS basic and diluted EPS were 15 cents, down 3 and 2 cents respectively
over Q1 2012.
At the end of Q1 2013, our total inventory level was below Q4 2012 at $146
million (or ~120 days). We continued to manage our inventory through the
product cycle trough. In anticipation of a number of product launches
during the coming quarters, the percentage of raw materials out of total
inventory value increased to 30%, more than doubling from the end of 2012
and representing approximately 18 days. We expect a further net reduction
in inventory value during Q2 2013.
At the end of Q1 2013, we had cash and cash equivalents balance of $318.6
million. In the first quarter we generated $20 million of operating cash.
Free cash flow(***) movement in the quarter was an inflow of $1.9 million.
(*) Underlying results in Q1-2013 are based on IFRS unaudited consolidated
interim income statement, adjusted to exclude share-based compensation
charges and related charges for National Insurance of US$1.3 million,
excluding US$1.1 million of amortisation of intangibles associated with the
acquisition of SiTel (now Dialog B.V.), excluding US$1.9 million non-cash
interest expense in connection with the convertible bond and excluding
US$0.3 million non-cash effective interest expense related to a licensing
agreement entered into in Q3-2012 and also excluding the related tax
effects.
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 (Q1 2013: US$3.9 million, Q1 2012: US$2.7
million), amortisation for intangible assets (Q1 2013: US$5.1 million, Q1
2012: US$4.7 million) and losses on disposals and impairment of fixed
assets (Q1 2013: US$0.3 million, Q1 2012: US$0.2 million)
(***) Free Cash Flow is defined as net income of US$9.9 million plus
amortisation and depreciation of US$ 9.1 million, minus change in working
capital of US$7.5 million, minus capital expenditure of US$12.2 million and
plus net interest expense of US$2.6 million.
Operational overview
In Q1 2013 we won additional new custom PMIC designs across new platforms
and models at our largest clients. We made good progress in the
diversification of our client footprint with a third global smartphone
platform win with Samsung. Our power management IC (PMIC) with integrated
audio functionality is being used in the new range of entry to mid-level
Samsung Galaxy Fame smartphone. This third platform win with Samsung is a
powerful endorsement of Dialog's technology and we look forward to
furthering our relationship with the addition of more platform wins in the
future.
The high level of integration in our power management IC (PMIC) continued
to support an increase in the Average Sales Price (ASP).
Building on our innovation effort and as part of our ultrabook strategy we
entered the touch screen sensors segment with the launch of our first
multi-touch IC (MTIC) SmartwaveTM.
This solution enables multi-touch experience at a price point affordable
for mainstream UltrabooksTM and a new generation of touch enabled display
products. Unlike competing technologies, it allows system costs to scale
linearly with screen size. SmartwaveTM is suitable for today's laptops,
All-in-One PCs, UltrabooksTM and monitors and is optimised for display
types between 11 and 36 inches. It is also designed to meet Microsoft
Windows 8 and Intel's UltrabooksTM touch requirements.
As part of the Partner Processor Programme we expanded our collaboration
with Intel for the development of a single-chip power management IC (PMIC).
Together with the next generation Intel(R) Atom(TM) processor, codename
'Bay Trail', this PMIC delivers outstanding battery life for tablet
designs, a critical factor in consumer product choice. This product was
optimised to be a system power management device on Intel's reference
design vehicle: an 'open bench top' customer reference board/kit for test,
measurement and software development as well as an enclosed form-factor
reference design that requires minimal additional hardware to complete the
rapid development of tablet computers.
Dialog's focus on Asia design-in activity has been building momentum, with
a number of customers evaluating our System PMIC, fast charger functions
and programmable multi- phase converters. During Q1 2013, one of our highly
integrated PMICs has been selected by a new Asia based smart phone chipset
partner. Our PMIC will be part of their reference design targeting the high
volume smartphone Chinese market. We expect an Asia based Tier 1 customer
to begin volume smartphone shipments by end of 2013 based on this reference
design.
The transition of our power management IP (intellectual property) to 0.13
micron BCD technology continued according to plan. 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. We anticipate the
first products to be available for sampling by Q4 2013.
* * * * *
Dialog Semiconductor invites you today at 08.30 am (London) / 09.30 am
(Frankfurt) to take part in a live conference call and to listen to
management's discussion of the Company's Q1 2013 performance, as well as
guidance for Q2 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 #44924030. 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 29 March 2013 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(at)diasemi.com
Dialog Semiconductor
Helen McInnes
Head of Global Corporate Communications
T: +44 (0)1793-756-960
Mobile: +44 (0)7554 419 180
helen.mcinnes(at)diasemi.com
FTI Consulting London
Matt Dixon
T: +44 (0)20 7269 7214
matt.dixon(at)fticonsulting.com
FTI Consulting Frankfurt
Thomas M. Krammer
T: +49 (0) 69 9203 7183
thomas.krammer(at)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(at)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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