DGAP-News Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR REPORTS FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2011 RESULTS
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DGAP-News: Dialog Semiconductor Plc. / Key word(s): Final
Results/Quarter Results
Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR REPORTS FOURTH QUARTER
AND YEAR ENDED 31 DECEMBER 2011 RESULTS
22.02.2012 / 07:25
DIALOG SEMICONDUCTOR REPORTS FOURTH QUARTER AND YEAR ENDED 31 DECEMBER 2011
RESULTS
The Company maintains revenue growth momentum with record revenue for both
Q4 2011 and FY 2011; delivering 78% year-on-year revenue growth
Kirchheim/Teck, Germany, 22 February 2012 - Dialog Semiconductor plc (FWB:
DLG), a provider of highly integrated innovative power management, audio
and short range wireless technologies today reports results for Q4 and
audited results for the financial year ended 31 December 2011.
Q4 AND FINANCIAL YEAR 2011 FINANCIAL HIGHLIGHTS
- Revenue for Q4 2011 was $172.1 million, an increase of 22.4% over the
prior quarter and 96.5% on Q4 2010. For the financial year as a whole,
revenue was $527.3 million representing an increase of 77.8% over
financial year 2010
- Cash and cash equivalents at year-end stood at $113.6 million, an
increase in Q4 2011 of $19.2 million over the prior quarter
- Cash generated from operations during FY 2011 was $72.4 million
- For the financial year 2011, IFRS operating profit was $61.6 million or
11.7% of revenue with underlying(*) operating profit of $ 79.8 million
or 15.1% of revenue
- Q4 2011 underlying(*) diluted earnings per share of 35 cents, with full
year underlying(*) diluted earnings per share of 111 cents
Q4 AND FINANCIAL YEAR 2011 OPERATIONAL HIGHLIGHTS
- Continued power management smartphone and tablet pc design win success
with the leading trend-setting manufacturers
- Addition of Samsung as a new customer for power management and audio
technology for smartphone platforms, with first phones in production
from Q4 2011
- Acquisition and successful integration of SiTel Semiconductor targeting
short range wireless applications
- ARM multicore support added to Dialog´s newest generation of system
level PMICs
- Addition of Freescale as latest member of processor partner initiative
for companion PMICs targeting popular iMX53 platforms
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
´2011 was a very successful year for Dialog, where we led the industry in
terms of integrated power management market share for smartphones and
tablet pcs, while achieving our management goal of breaking through $500
million in annual revenue. Through a very difficult supply chain period, I
am particularly proud that we increased unit shipments by 61 percent across
the company and offered our customers higher value solutions.
We executed on our first significant acquisition, adding short range
wireless technology to our portfolio and achieved earnings accretion just
one quarter after closing the acquisition. As a result, Dialog is well
positioned with a much stronger portfolio to take further advantage of
opportunities in the emerging high growth personal portable connected
device market.´
FINANCIAL OVERVIEW
Revenue in Q4 2011 was $172.1 million representing a sequential increase of
22.4% on the $140.6 million of revenue delivered in Q3 2011 and an increase
of 96.5% over the $87.6 million delivered in the comparative period last
year. This revenue growth was primarily driven by the success of our
customers in the smartphone and tablet pc market. For the financial year
2011 revenue was $527.3 million: an increase of 77.8% over FY 2010.
Excluding the $108.8 million of revenue associated with the acquired SiTel
business for 2011 and $28.7 million in Q4 2011, quarterly year on year
organic growth was 63.7%, with annualised growth at 41.1%.
For the financial year 2011, gross margin was 39.5% (FY 2010: 46.3%), with
underlying(*) gross margin at 40.1%. Gross margin in Q4 2011 was 36.5% (Q3
2011: 40.9%). As previously indicated, gross margins remained under
pressure due to the product mix increasingly reflecting the higher volume
customer contracts together with higher material costs.
Our operating expenses increased in Q4 2011 by $2.75 million over the prior
quarter to $41.3 million. However, we have continued to keep tight control
over our operating expenses such that R&D and SG&A in Q4 2011 stood at
14.5% and 9.4% of revenue respectively compared to 17.7% and 9.7% in the
prior quarter. On an annual basis for 2011, R&D and SG&A was 17.1% and
10.8% of revenue respectively, compared to 19.0% and 11.8% in FY 2010.
Operating profit on an IFRS basis in Q4 2011 was $21.5 million or 12.5% of
revenue. This compares to the $19.1 million or 13.6% of revenue delivered
in the prior quarter and $12.9 million or 14.8% in Q4 2010. The
underlying(*) operating profit achieved in Q4 2011 was $26.1 million or
15.2% of revenue, compared with the underlying(*) operating profit of $22.8
million or 16.2% of revenue in the prior quarter and $17.3 million or 19.7%
in Q4 2010.
For the financial year 2011, operating profit on an IFRS basis was $61.6
million or 11.7% of revenue (FY 2010: $45.3 million, 15.3% of revenue). The
underlying(*) operating profit achieved in 2011 was $79.8 million or 15.1%
of revenue (FY 2010: $56.2 million, 18.9% of revenue).
In Q4 2011 underlying(*) EBITDA(**) was $33.3 million or 19.4% of revenue
compared to $19.5 million or 22.3% in Q4 2010. For the financial year, the
underlying EBITDA(**) was $96.0 million or 18.2% of revenue compared to
$63.8 million or 21.5% in FY 2010.
The tax charge in Q4 2011 continued to benefit from the utilisation of
brought-forward tax losses resulting in a residual minimum level current
tax charge. In total a net tax charge of $2.4 million was recorded in Q4
2011. Consequently, the overall effective tax rate for Q4 2011 was 11.1%.
For the full year 2011 the overall effective tax rate was 9.1% compared to
4.0% in FY 2010.
Available accumulated trading losses carried forward in Dialog GmbH that
can be offset against future profits are now expected to be fully utilised
by Q1 2013, resulting in a full year 2012 effective tax rate that is
expected to approach 27.0%.
In Q4 2011, on an IFRS basis net profit was $19.1 million or 30 cents per
basic share and 28 cents per diluted share. This compares to 28 cents per
basic share and 26 cents per diluted share delivered in the prior quarter.
For the full year 2011, basic and diluted EPS were 89 and 84 cents
respectively, compared to 70 and 66 cents in FY 2010.
The underlying(*) earnings per share (diluted) in Q4 2011 and for the full
year 2011 was 35 cents and 111 cents respectively. This compares to 31
cents for the prior quarter and 82 cents for FY 2010.
At the end of Q4 2011, our total inventory level was at 52 days ($62.6
million) a decrease of 24 days over the prior quarter and 24 days over Q4
2010. The inventory remains at a level we believe is appropriate to service
our demand as we enter the new financial year.
At the end of Q4 2011, we had a cash and cash equivalents balance of $113.6
million. This represents an increase of $19.2 million over the cash and
cash equivalents balance at the end of Q3 2011. During 2011, $72.4 millions
of cash were generated from operations. Dialog is currently debt free.
(*) Underlying results are based on IFRS, adjusted to exclude share-based
compensation charges (Q4 2011: $1.6 million; 2011: $6.2 million), excluding
one-time costs associated with the acquisition of SiTel Semiconductor
(´SiTel´) (Q4 2011: $0.1 million; 2011: $3.3 million), excluding
amortisation of intangibles associated with the acquisition of SiTel (Q4
2011: $2.3 million; 2011: $6.4 million) and excluding amortisation expenses
in relation to previously capitalised R&D expenses for close to end of life
products from SiTel (Q4 2011: $0.6 million; 2011: 2.2 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 (Q4 2011: $ 2.7 million; 2011: $8.8 million),
and amortisation for intangible assets (Q4 2011: $ 7.4 million; 2011: $16.0
million).
OPERATIONAL OVERVIEW
We continue to successfully execute on our strategy, both to further
strengthen our technology leadership and to expand our addressable market.
The acquisition of SiTel Semiconductor in February 2011 added short range
wireless technology to our portfolio, significantly increasing our
addressable market and extending our ability to deliver more products in
more areas of the portable device arena.
Within the wireless segment, our portable device design win momentum has
continued in 2011, including major wins not only in smartphones but also
with a new generation of tablet pcs. Samsung was also added as a new
customer for both power management and ultra low power audio technology in
a stacked die configuration in a single package. The first phones based on
this first platform win were launched in Q4 2011 to the SC-TDMA market in
China with leading local operator, China Telecom. We continue to view both
the smartphone and tablet pc markets, which have emerged strongly in 2011
and underpinned our own strong revenue growth, as significant markets that
can support Dialog´s ongoing growth plans.
Our third generation of configurable system PMICs was launched in 2011.
This PMIC set supports the ARM Cortex(TM) family of processors including
multi-processor core configurations for both high and low end portable
systems. Delivering class-leading energy efficiency and power-up
flexibility, this new generation of standard products supports leading
mobile graphics and application processor families. During 2011 we also
began the transition to higher integrated PMICs including high voltage FET
components, enabled by TSMC BCD technology.
Through the acquisition of SiTel, and based on its excellent customer list
and proprietary short range technology, Gigaset and Panasonic have emerged
as two of Dialog´s top 5 customers in revenue terms for 2011, mainly for
digital cordless ICs. During 2011 we successfully launched new generations
of products from this acquired business. Firstly, a new low power class of
Green VoIP ICs was brought to market. Here we are already successfully
engaged with the leading VoIP equipment manufacturers. In addition we
launched an innovative new family of wireless sensor network ICs, branded
as ´SmartPulse(TM)´, targeting the rapidly growing internet connectivity
market around personal and home controlled devices. We were delighted to
announce the launch of SmartPulse alongside news that Panasonic has chosen
to become our first customer for SmartPulse, using the technology for a
home security system.
This year we saw limited production of our first generation of
SmartXtend(TM) passive matrix OLED display driver IC with Lenovo for a
China smartphone product, with further innovative niche volume adopters
inthe pipeline for 2012. We continue to engage with major tier 1 OEMs and
module display manufacturers to secure their adoption of this technology
and their investment in the required display production capacity, before
proceeding with further R&D by Dialog in the next generation of this
technology.
Within our automotive and industrial segment, our success with Bosch around
wiper motor control IC systems continued through 2011 and a new customer
for our automotive business in Japan is planned to now start production in
2012. The global transition to an increasing use of energy-saving lighting,
including LED based bulbs, is also providing an exciting opportunity for
Dialog to further build on its existing lighting business for the future.
In recognition of the many operational achievements delivered during the
year, Dialog once again received the Global Semiconductor Association´s
prestigious ´Outstanding European Semiconductor Company´ award for the
third consecutive year.
OUTLOOK
For Q1 2012, we expect a strong start to the year with revenue for the
quarter to be in the range of $160 to $166 million, delivering significant
year on year growth and less of a seasonal decline over Q4 than normal. We
expect to maintain our strong revenue momentum throughout financial year
2012 and, although gross margins remain under pressure, we believe that
gross margin in Q1 2012 will stabilise at a similar level to that seen in
Q4 2011 and then we expect gradual improvement in the gross margin going
forward in 2012.
US$000 Q4 - 2011 Q4 - 2010
IFRS Adjust- Adjust- Under- IFRS Adjust- Under-
ment ment lying *) ment lying *)
Share SiTel Share
Options Acqui- Options
sition
Revenues 172,078 - - 172,078 87,565 - 87,565
Cost of
sales (109,315) 69 (1,127)(108,257) (48,232) (132) (48,100)
Gross profit 62,763 69 (1,127) 63,821 39,333 (132) 39,465
Selling and
marketing
expenses (9,346) (950) (1,550) (6,846) (4,998) (620) (4,378)
M&A related
general and
administrative
expenses (3,291) - (3,291) - - - -
Other
general and
administrative
expenses (3,614) (67) 3,193 (6,740) (5,761) (2,208) (3,553)
General and
administrative
expenses
(total) (6,905) (67) (98) (6,740) (5,761) (2,208) (3,553)
Research and
development
expenses (25,015) (665) (200) (24,150) (15,648) (1,374) (14,274)
Restructuring
expenses - - - - (9) - (9)
Operating
profit 21,497 (1,613) (2,975) 26,085 12,917 (4,334) 17,251
Financial
result (55) - - (55) (458) - (458)
Result before
income taxes 21,442 (1,613) (2,975) 26,030 12,459 (4,334) 16,793
Income tax
expense (2,390) - - (2,390) 570 - 570
Net profit 19,052 (1,613) (2,975) 23,640 13,029 (4,334) 17,363
Earnings per
share in US$
Basic 0.30 (0.03) (0.05) 0.37 0.21 0.07 0.29
Diluted 0.28 (0.02) (0.04) 0.35 0.20 0.07 0.26
EBITDA **) 31,594 (1,613) (98) 33,305 15,192 (4,334) 19,526
US$000 2011 2010
IFRS Adjust- Adjust- Under- IFRS Adjust- Under-
ment ment lying *) ment lying *)
Share SiTel Share
Options Acqui- Options
sition
Revenues 527,261 - - 527,261 296,597 - 296,597
Cost of
sales (319,073) (499) (2,552)(316,022)(159,334) (460)(158,874)
Gross profit 208,188 (499) (2,552) 211,239 137,263 (460) 137,723
Selling and
marketing
expenses (32,370) (1,115) (5,428) (25,827) (17,391) (1,603) (15,788)
M&A related
general and
administrative
expenses (3,291) - (3,291) - - - -
Other
general and
administrative
expenses (21,151) (1,211) - (19,940) (17,471) (5,305) (12,166)
General and
administrative
expenses
(total) (24,442) (1,211) (3,291) (19,940) (17,471) (5,305) (12,166)
Research and
development
expenses (90,046) (3,410) (679) (85,957) (56,465) (3,485) (52,980)
Restructuring
expenses - - - - (595) - (595)
other income
and
(expense) 303 - - 303 - - -
Operating
profit 61,633 (6,235) (11,950) 79,818 45,341 (10,853) 56,194
Financial
result (211) - - (211) (1,078) - (1,078)
Result before
income taxes 61,422 (6,235) (11,950) 79,607 44,263 (10,853) 55,116
Income tax
expense (5,559) - - (5,559) (1,784) - (1,784)
Net profit 55,863 (6,235) (11,950) 74,048 42,479 (10,853) 53,332
Earnings per
share in US$
Basic 0.89 (0.10) (0.19) 1.18 0.70 (0.18) 0.88
Diluted 0.84 (0.09) (0.18) 1.11 0.66 (0.17) 0.82
EBITDA **) 86,464 (6,235) (20,609) 95,990 52,899 (10,853) 63,752
Conference Call on Wednesday 22nd February at 09:00 UK / 10:00 CET
Dialog Semiconductor invites you to listen to a management discussion on
the Q4 2011 and full year 2011 performance. To access the conference call
please use the following dial-in numbers: Germany 0800 101 4960, UK 0800
694 0257, USA +1 866 966 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
41219463#. 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 corporate news 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 2011 is available under the investor relations section of the
Company´s web site.
For further information please contact:
Dialog Semiconductor
Neue Straße 95
D-73230 Kirchheim/Teck
Germany
T +49-7021-805-412
F +49-7021-805-200
dialog@fticonsulting.com
www.dialog-semiconductor.com
FTI Consulting - London
Matt Dixon
T +44 20 7269 7214
matt.dixon@fticonsulting.com
FTI Consulting - Frankfurt
Thomas M. Krammer
T +49 69 920 37 183
thomas.krammer@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 now with the recent addition of low energy short range wireless and
VoIP technology to the portfolio, Dialog brings decades of experience to
the rapid development of ICs for personal portable applications including
smartphones, tablet pc´s, digital cordless phones 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 2011, it had approximately $527
million in revenue and was one of the fastest growing European public
semiconductor companies. It currently has approximately 650 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
End of Corporate News
22.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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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: birgit.hummel@diasemi.com
Internet: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
157585 22.02.2012
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