Dialog Semiconductor plc announced its results for the first quarter of 2008. Revenue stands at US$31.5 million – some 132% higher than Q1 2007 and 8.8% lower than Q4 2007, which the company states is in line with the typical and expected seasonality levels associated with its business. The company reported a net profit of $68,000.
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said, "As expected and as is typical at this stage in our Financial Year, our Q1 2008 revenue contains proportionally less consumer and cell phone product revenue relative to Q4 2007. As a result our gross margins have reduced in Q1 from their particularly high level in Q4 2007 (Q4 2007: 41.5%). However, with gross margin for the quarter standing at 33.5%, we continue to operate within the average gross margin range of 33.0% recorded for FY 07 and are working to deliver greater gross margin improvements.
"Dialog’s cash and securities balance decreased to $28.6m in Q1 2008 from $35.8m at the year end. This decrease was primarily a timing effect driven by an increase in Trade Receivables close to the end of the period and should be viewed against the backdrop of a particularly low balance as at the end of the 2007 financial year.
"It is a significant achievement for us to have delivered a breakeven Q1, given this is seasonally the quietest period in our business, and this achievement further validates the investments we have made in our new products and business platform. Whilst general economic conditions remain uncertain, we continue to be confident that we will deliver substantial growth in the second half of 2008 and that at this early stage we remain on track to meet our expectations for the full year.
"FY 2007 saw Dialog invest heavily in building a newer, more efficient platform for future growth. The benefits of that platform have already begun to flow through in FY 2008 to our bottom line, as evidenced by our breakeven this quarter. We continue to fine tune our platform and make best use of our fabless operation model and in this period we further improved our efficiency by completing our move to a worldwide customer drop-ship delivery model direct from our manufacturing sub-contractors in the Far East. This supply chain model will further reduce our delivery cycle time to customers and offer a much enhanced service compared to our previous European-based logistics operation.
"Looking ahead, Dialog continues to invest in the development of new, highly differentiated products for new and emerging ’always-on,’ low-power display technologies. In Q1 2007, Dialog began promoting its optimised low drivers for Passive Matrix OLED technology to customers and anticipates that the first products will begin sampling in Q3 2008. As previously guided, our portfolio of display products including e-paper and MEMS based display drivers should start contributing revenue in 2008."
