Profitable Dialog sees benefits from Apple deal

May 09, 2019 //By Peter Clarke
Profitable Dialog sees benefits from Apple deal
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.

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."

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