The company reported 1Q20 sales revenue of US$248 million at the high end of the guidance range and 16 percent below 1Q2019. The company made an operating profit of $17.5 million compared with $25 million in the same quarter a year before and the net income was $13.6 million compared with $18.4 million a year before.
However, year-on-year comparisons are difficult because Dialog transferred 16 percent of its workforce to Apple late in 2018 in return for license fees and prepayment of $600 million for three years of products (see Apple to acquire PMIC capabilities, staff from Dialog ).
Dialog said 1Q20 decline was driven by an expected decline in revenue from licensed PMICs, partially offset by growth in mixed-signal products with the company's largest customer, which is likely to still be Apple. With licensed PMIC revenue excluded Dialog's revenue was up 34 percent year-on-year.
"In Q2 2020, we anticipate revenue to be in the range of US$260 million to US$290 million and underlying gross margin to be broadly in line with Q1 2020," said Jalal Bagherli, CEO of Dialog in a statement.
At the represents a sequential increase of between 4.6 and 16.7 percent. At the mid-point Dialog is forecasting a 10.7 percent sequential rise in revenue in 2Q20.
Bagherli continued: "Although the situation of our supply chain and contract manufacturers is close to being fully operational, and the level of customer engagements continues as planned, the ongoing economic uncertainty caused by the Covid-19 pandemic is resulting in lower than usual visibility in our outlook for the second half of the year. Due to this, we have withdrawn the FY 2020 outlook communicated on 4 March 2020."
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