Profitable Dialog sees benefits from Apple deal

Profitable Dialog sees benefits from Apple deal

Business news |
Dialog Semiconductor plc saw its revenue decline in 1Q19, partly due to the absence of sales of a key PMIC to Apple, but is looking forward to a $150 million windfall from Apple in 2Q19.
By Peter Clarke

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Dialog’s quarterly revenue was $295 million, 11 percent down on 1Q18 revenue but the company managed to increase its net profit to $18.4 million, 5 percent above that in 1Q18. The missing PMIC revenue is related to a deal Dialog completed after the quarter’s end to transfer technology and staff to Apple (Dialog completes Apple deal with transfer of 300 staff).

The outlook for 2Q19 is for revenue of between $438 million and $478 million, a 50 percent increase on 2Q18, but this includes a one-off licensing fee from Apple of $145 million and a non-recurring engineering charge to Apple of $9 million.

“We delivered revenue above the mid-point of our guidance range, record gross margin and strong free cash flow generation despite the anticipated softness in demand across the industry,” said Jalal Bagherli, CEO of Dialog, in a statement. He added: “Following the completion of the transaction with Apple, we are embarking on the transformation of our business, building on our deep mixed signal power-efficient expertise and a strategic focus on high growth segments of IoT, mobile, automotive and computing and storage end markets.”

Related links and articles:

www.dialog-semiconductor.com

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