Dialog Semi Announces Financial Results For First Quarter 2009

April 28, 2009 by Jeff Shepard

Dialog Semiconductor Plc. reported its first quarter ending 27th March 2009 results. Revenue for Q1 2009 was $36.0 million, an increase of 14% over the corresponding quarter of 2008. Cash and cash equivalents increased in Q1 2009 over prior quarter by $3.9 million to stand at $40.8 million. Dialog states that it remains debt free with credit lines untapped.

The company recorded sixth consecutive quarter of profitability with a net profit in Q1 2009 of $0.8 million or 2.2% of revenue compared to $68,000 in Q1 2008. Inventory levels further reduced in Q1 2009 by $2.4 million to $17.5 million.

Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said, "Our performance in the first quarter exemplifies our commitment to our strategy. Despite the current economic conditions, we have maintained the positive momentum we created in 2008 with an impressive start to this year. We continue to execute on our strategy of market share expansion, customer diversification and transition to a more balanced portfolio of standard products. Additionally, we have created deeper relationships with our customers and suppliers while continuing to lead with arguably the highest integrated energy efficient power management products on the market today."

Revenue in Q1 2009 was $36.0 million, an increase of 14% over the $31.5 million in the first quarter of 2008 and a sequential decrease of 31% on the $51.9 million of revenue delivered in the prior quarter.

In Q1 2009, net profit was $0.8 million or 2 cents per diluted share – the company’s sixth consecutive quarter of profitability. This compares to a net profit of $68,000 or 0 cents per diluted share in Q1 2008 and to a net profit of $4.6 million or 10 cents per diluted share delivered in Q4 2008.

Gross margin for the first quarter was 36.7%. This represents an increase of 3.2 percentage points over the 33.5% achieved in the comparative period last year and a decrease of 5.4 percentage points over the 42.1% achieved in Q4 2008. Excluding the impact of Non Recurring Engineering (NRE) income of $2.3 million recorded in the quarter, gross margin for Q1 2009 would have been 39.2%.