Dialog Semiconductor plc reported unaudited results for the third quarter ended 29, September 2017, including: revenue of US$363 million, a record Q3 revenue, up 5% year-on-year and 2% above the mid-point of the July guidance range; gross margin at 46.9% and underlying¹ gross margin at 47.5%, above the July guidance; and operating profit of US$62.6million, 2% above Q32016. Underlying¹ operating profit was US$76.6million, 4% above Q32016.
On 1 November 2017, the Company completed the acquisition of 100% of the voting equity interests in Silego Technology Inc., a leader in Configurable Mixed-Signal ICs (CMICs) for US$276.0 million, on a cash and debt-free basis, subject to adjustments for cash and working capital, and additional contingent consideration of up to $US30.4 million.
Additional Q32017 financial highlights include:
- Mobile Systems revenue up 54% sequentially.
- All operational business segments were profitable on an underlying basis.
- Diluted EPS of US$0.62, up 5% over Q32016 and underlying diluted EPS of US$0.81, up 14% over Q32016.
- Cash flow from operating activities of US$33.5 million (Q32016: US$39.3 million). US$636.2 million of cash and cash equivalents, US$12.4 million below 30 September 2016.
Q32017 operational highlights included:
- Continued momentum and design-in engagements for custom Power Management ICs (PMICs) at leading OEMs, for next generation smartphones, tablets, computing and wearable products.
- Rapid Charge™ AC/DC power conversion adapter products continue high-volume ramp at top Chinese smartphone OEMs.
- Dialog’s Bluetooth® low energy products continue to be adopted across a wide range of applications, helping to deliver a record quarterly revenue for the Connectivity segment.
- Bluetooth® low energy market success extended to automotive tire pressure monitoring system with first production shipments.
- Early success with first design win of new wireless audio IC for consumer headset application at Asian OEM.
- First GaN based WattUp™ RF based wireless charging reference designs, supporting higher power and efficiency, announced with strategic partner Energous.
Commenting on the results, Dialog Chief Executive, Dr Jalal Bagherli, said: “Q3 2017 was a record Q3 quarter, with year-on-year revenue growth and gross margin ahead of our July guidance. Mobile Systems delivered robust sequential revenue growth and Connectivity posted record quarterly revenue, as we continue to capitalize on strong demand for power management and power efficient technologies.
“With the acquisition of Silego Technology we now open a new business opportunity built on an innovative and differentiated technology platform. Together, we can increase the value we bring to our customers and establish a new leadership position in a high growth emerging market.
“Our deep and focused investment in R&D ensures we can establish a differentiated technology portfolio covering a range of markets and add to a strong pipeline of opportunities with Tier 1 customers. As a result, we remain confident in our growth prospects for next year and over the medium term.”
“Based on our current visibility, we anticipate revenue for Q42017 to be in the range of US$415 to US$455 million. At the mid-point, this will result in full year 2017 revenue up 11% year-on-year to US$1,324 million. We have a robust order backlog and we expect demand for our new products to remain strong.
“In line with the revenue performance, we now expect gross margin for the full year2017 to be slightly above the full year 2016,” Dr. Bagherli concluded.