DGAP-News: Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2012
(firmenpresse) - DGAP-News: Dialog Semiconductor Plc. / Key word(s): Quarter Results
Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR ANNOUNCES RESULTS FOR
THE FIRST QUARTER OF 2012
02.05.2012 / 07:28
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DIALOG SEMICONDUCTOR ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2012
Company reports a record first quarter revenue of $166.3 million, achieving
strong year-on-year revenue growth of 69%
Kirchheim/Teck, Germany, 2 May 2012 - 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 the
first quarter ended 30 March 2012.
Q1 2012 Financial Highlights (*)
- Revenue for Q1 2012 of $166.3 million, representing an increase of
68.9% over the corresponding quarter of 2011
- Q1 2012 IFRS operating profit (EBIT) was $12.3 million or 7.4% of
revenue with underlying(*) operating profit of $21.5 million or 13.0%
of revenue
- Q1 2012 underlying(*) EBITDA(**) of $27.1 million or 16.3% of revenue,
compared to $17.2 million or 17.5% of revenue in Q1 2011
- Q1 2012 underlying(*) diluted earnings per share of 27 cents, an
increase of 7 cents over Q1 2011
- Cash and cash equivalents balance of $136.3 million, an increase of
$22.8 million over the prior quarter
- Launch of $201 million Convertible Bond Offering during the quarter,
which successfully closed on April 12th post period end
- Remain on track to deliver a successful result for 2012
Q1 2012 Operational Highlights
- Record first quarter revenue performance driven by sustained strong
demand for Smartphone and Tablet PC PMIC products, supporting new
product launches at our leading customers
- Announced co-operation with TSMC for a new 130 nm BCD process platform
- Pioneering 32-bit ARM processor integration in mixed signal PMICs,
adding intelligence and digital power control for quad-core handsets
- Extension of the Green VOIP IC family with the launch of the new
SC14453, incorporating leading audio, security and graphics
functionality
- Opening of new Asian headquarters in Taipei to service the increasing
demand for our products in Asia
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
'We have seen a very strong start to 2012 experiencing a lesser first
quarter seasonal decline than normal due to the continued success of our
trend setting Smartphone and Tablet customers. I am particularly pleased
that we have achieved incremental gross margin improvement one quarter
earlier than projected and believe that this gradual improvement will
continue as the year progresses. During the quarter we also launched a
successful $201 million convertible bond offering, strengthening our
already robust cash balance, and ability to capitalise on potential
acquisition opportunities going forward.'
FINANCIAL OVERVIEW
Revenue in Q1 2012 was $166.3 million, representing an increase of 68.9%
over the $98.5 million delivered in the first quarter of 2011 and a
sequential decrease of 3.3% on the $172.1 million of revenue delivered in
the prior quarter.
This first quarter is typically the lowest quarter of our financial year.
This year, however, we experienced a lesser seasonal decline than usual and
delivered avery strong Q1 revenue performance. Two key factors contributed
to this strong result. First, we experienced particularly strong demand
from our leading customers in support of new Smartphone and Tablet PC
products launched by them in Q1. Secondly, some products in contract
manufacturer hubs were pulled for customer production in the last week of
Q1, earlier than originally scheduled, leading to a stronger than
anticipated close to the quarter.
Gross margin in Q1 2012 was 36.9% of revenue. This represents an increase
of 0.4 percentage points over that 36.5% achieved in the prior quarter and
a decrease of 4.3 percentage points over the 41.2% achieved in Q1 2011. Q1
2012 underlying(*) gross margin was 37.3% compared to 37.1% in Q4 2011.
This incremental improvement to gross margin expansion has begun one
quarter earlier than projected, having stabilised earlier in the first
quarter.
R&D and SG&A in Q1 2012 stood at 17.2% and 12.3% of revenue respectively,
compared to 19.4% and 13.7% in Q1 2011 and 14.5% and 9.4% in the prior
quarter. This represented an increase in absolute terms of $7.9 million
over the prior quarter to $49.1 million. Q1 2012 SG&A included $3.4 million
of one-off costs associated with the Convertible Bond Offering.
Underlying(*) R&D and SG&A in Q1 2012 stood at 16.3% and 7.9% of revenue
respectively, compared to 17.9% and 9.7% in Q1 2011.
Operating profit on an IFRS basis in Q1 2012 was $12.3 million or 7.4% of
revenue. This compares to the $8.0 million or 8.1% of revenue achieved in
Q1 2011 and 12.5% of revenue achieved in the prior quarter. The
underlying(*) operating profit achieved in Q1 2012 was $21.5 million or
13.0% of revenue, compared with the underlying(*) operating profit of $13.8
million or 14.0% of revenue in Q1 2011 and $26.1 million or 15.2 % in the
prior quarter. In Q1 2012 underlying(*) EBITDA(**) was $27.1 million or
16.3% of revenue compared to $17.2 million or 17.5% in Q1 2011 and $33.3
million or 19.4% in the prior quarter.
In total a net tax charge of $3.4 million was recorded in Q1 2012.
Consequently, the overall effective tax rate for Q1 2012 was 27.0%.
In Q1 2012, on an IFRS basis, net profit was $9.1 million or 14 cents per
basic share and 13 cents per diluted share. This compares to a net profit
of $7.7 million or 12 cents per basic and diluted share delivered in Q1
2011 and a net profit of $19.1 million or 30 cents per basic and 28 cents
per diluted share in the prior quarter. The underlying(*) earnings per
share (diluted) in Q1 2012 was 27 cents. This compares to 20 cents in Q1
2011 and 35 cents in the prior quarter.
At the end of Q1 2012, our total inventory level was $80.7 million (or ~69
days), an increase of $18.1 million over the prior quarter and at a level
which we feel is appropriate in order to service the accelerating demand
expected of the business during the second half of 2012.
Cash generated from operations was $35.8 million. At the end of Q1 2012, we
had a cash and cash equivalents of $136.3 million. This represents an
increase of $22.8 million over the cash and cash equivalents over the prior
quarter and demonstrates the strong cash generating ability of Dialog's
operating model.
During Q1 2012, we launched a 5 year Convertible Bond Offering yielding
gross proceeds of $201 million. The offering closed successfully on April
12th subsequent to the period end. The bonds, which are listed on the
Luxembourg Stock Exchange's Euro MTF market, will be convertible into
ordinary shares of Dialog Semiconductor, listed on the Regulated Market of
the Frankfurt Stock Exchange. The Bonds were issued at 100% of their
principal amount with a coupon of 1.0% per-annum payable semi-annually in
arrear. The conversion price is $29.5717 (EUR22.367), representing a
premium of 35 percent above the volume-weighted average price on XETRA of
Dialog Semiconductor's ordinary shares to the time of pricing on 8 March.
(*) Underlying results are based on IFRS, adjusted to exclude share-based
compensation charges and related charges for National Insurance (Q1 2012:$3.7 million), excluding one-time costs associated with the offering of a
convertible bond (please refer to note 8 to the interim consolidated
financial statements) (Q1 2012: $3.4 million), excluding amortisation of
intangibles associated with the acquisition of SiTel Semiconductor
('SiTel') (Q1 2012: $1.5 million) and excluding amortisation expenses in
relation to previously capitalised R&D expenses for close to end of life
products from SiTel (Q1 2012: $0.6 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. )
(**) EBITDA is defined as operating profit excluding depreciation for
property, plant and equipment (Q1 2012: $2.7 million), amortisation for
intangible assets (Q1 2012: $4.7 million) and losses on disposals and
impairment of fixed assets (Q1 2012: 0.2 million).
(***) Q1-2011 numbers adjusted for purchase price allocation, please refer
to note 1 to the Q1-2012 consolidated interim financial statements.
OPERATIONAL OVERVIEW
Within the Mobile Systems group, our portable device design win momentum
continued to accelerate during the first quarter, including additional
platform design in success at a tier 1 Smartphone OEM in Asia, for our
power management and audio technology. We continue to view both the
Smartphone and Tablet PC markets, which emerged strongly in 2011 and
underpinned our own strong revenue growth, as significant markets capable
of supporting Dialog's on-going growth plans.
During the quarter we licensed the ARM(R) Cortex(TM) M0 processor for use
in future generations of our power management ICs (PMICs). This will be the
first time a standard 32-bit processor will be integrated into mixed signal
PMICs. The combination will deliver superior digital processing
capabilities, enabling Dialog system-level PMICs to provide extensive
digital power control and precision battery management functions for
portable devices. These PMICs are aimed at high-end multicore application
processor-based platforms and deliver industry leading performance and
efficiency, significantly increasing battery life.
We continue to strengthen our strategic alliance with TSMC and announced
during the quarter that we were co-operating on a new 130 nm
bipolar-CMOS-DMOS (BCD) technology, specifically tailored to high
performance PMICs for portable devices. This will enable Dialog to create
even more highly integrated, smaller form factor single chip devices
optimised for portable products such as Tablet PCs, Ultrabooks and
Smartphones as the industry moves towards 300 mm wafer adoption for mixed
signal IC's. TSMC was also awarded the Dialog 2011 Supplier of the Year
Award at our office opening event in Taipei during the quarter.
Within our Connectivity group, in Q1 2012, we launched the latest member of
our Green VOIP family - SC14453 - targeting high end phones. The single
chip processor enters Dialog's VoIP portfolio as its flagship product and
integrates hardware blocks for best-in-class audio, security and graphics
functionality. Our SmartPulse(TM) smart wireless sensor technology based on
ultra-low power DECT technology continues to see increased design wins for
adoption in home automation control over the internet and personal medical
pendant devices.
To capitalise on the opportunity in Asia, particularly for the increasing
demand we see for the adoption of integrated PMICs in Ultrabooks,
Smartphones and Tablets, we opened during the first quarter a new Asian
headquarters in Taipei, Taiwan.
OUTLOOK
In Q2 2012, we expect to deliver revenue for the quarter in the range of
$158 to $168 million, representing further significant year on year growth.
We are now increasingly confident in our ability to meet current market
revenue expectations for the full year, driven by a stronger seasonal
second half and anticipated new product launches from our customers.
We continue to believe that the positive trend of gradual incremental gross
margin improvement achieved in Q1, will continue through 2012, supported by
our increasing supply chain visibility.
Dialog Semiconductor invites you today at 09:00 London / 10:00 Frankfurt
time to listen to and participate in a live conference call including a
management discussion of Q1 2012 performance. To access the call please use
the following dial-in numbers: Germany: 0800 101 4960, UK: 0800 694 0257,
US: US 1866 966 9439, Rest of World: +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 on +44 (0)1452 550 000 with access
code 66707114#. 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 release including the company's consolidated
income statement, consolidated balance sheet and consolidated statements of
cash flows for the period ending 30 March 2012 is available under the
investor relations section of the Company's web site.
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