Dialog Reports Continued Momentum for PMIC Design-ins
Dialog Semiconductor Plc reported results for the first quarter ended 31 March 2017. Q1 2017 financial highlights included: Revenue of US$271 million slightly above the mid-point of February guidance. All operational business segments delivered year-on-year revenue growth. Gross margin at 45.3% and underlying gross margin at 46.1%, in line with the February guidance. Operating profit of US$29.1 million, 81% below Q1 2016 which included US$137 million of the Atmel termination fee. Underlying operating profit of US$43.2 million, up 44% year-on-year.
All operational business segments delivered operating profits on an underlying basis. Diluted EPS of US$0.29 and underlying1 diluted EPS of US$0.43. US$41.4 million returned to shareholders through the share buyback program. Cash flow from operating activities of US$100.7 million (Q1 2016: US$107.1 million). US$85.9 million of free cash flow generated in Q1 2017. US$723 million of cash and cash equivalents, US$61 million above 1 April 2016.
Subsequent to the end of the quarter, the first intermediate settlement of the third tranche of the share buyback program took place. On 25 April 2017, the Company purchased 650,000 ordinary shares at an average price of â‚¬48.2459.
Q1 2017 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. Partnership with Spreadtrum announced, with first power related mixed signal IC for Spreadtrum's latest LTE platform demonstrated.
Diversification and expansion of the company's PMIC portfolio into the automotive market announcing Renesas as an automotive processor platform partner. Smartphone high efficiency charger standard product family launched, a new high growth ASSP market segment for Dialog. First RF-transmit wireless charging IC sampled, following the strategic partnership with Energous. Company's first Bluetooth® low energy System-on-Chip qualified, supporting latest Bluetooth 5.0 standard.
Commenting on the results, Dialog Chief Executive, Dr Jalal Bagherli, said: "This has been a positive start to the year and I'm pleased to report double-digit revenue growth, in line with our guidance. Particularly encouraging is the strong revenue growth recorded across all of our business segments. Our leadership position in the rapid charge market and the continued expansion of our portfolio of Bluetooth® low energy products are both helping to drive our momentum.
We remain focused on new areas of growth where we can differentiate with our innovative technology. Addressing high-efficiency smartphone charging and our partnership with Spreadtrum, offer exciting opportunities to increase our market share in Asia. All of this, combined with the increasing value we bring to our customers, underpins my confidence in our growth prospects for this year and over the medium-term."
"Based on our current visibility, we anticipate revenue for Q2 2017 to be in the range of US$235-US$265 million. Good business momentum and a pipeline of key product launches in the second half of the year, give us confidence in expecting 2017 to be a year of good revenue growth. As in previous years, revenue performance will be strongly weighted towards the second half of the year. In line with the revenue performance, we expect gross margin for Q2 2017 and the full year 2017 to be broadly in line with Q1 2017," concluded Dr. Bagherli.