Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DIALOG SEMICONDUCTOR PLC. We currently have 10 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
DIALOG SEMICONDUCTOR PLC
DIALOG SEMICONDUCTOR PLC
Strong release, growth back again in Q1 17 but no FY17 guidance
23 Feb 17
Dialog reported its Q4 and FY15 results. Concerning Q4, sales were down 8.6% yoy at $364m, following the drop in sales in Mobile Systems (-13.8% yoy, $288m). Power Conversion decelerated to +26.5% (31m), while Connectivity accelerated back to double-digit growth ($36m, +19.7%). The gross margin came in at 45.7% (flat yoy), while the EBIT margin decreased to 19.4% vs. 20.4% in Q4 15. For the FY, revenues reached $1,198m, corresponding to an 11.6% decrease compared to 2015. Mobile Systems was down 17.2% ($923m), Connectivity flat ($118m, +1.1%) and Power Conversion strongly up ($117m, +38.1%). The gross margin came in at 45.6% (down 50bp yoy), while the EBIT margin decreased by 480bp at 14.4%. For Q1 17, the company is expecting a traditional seasonal decrease in revenues in the $255-285m range, corresponding to an increase of c. 12% at the mid-point of guidance. The gross margin is expected to be similar to Q4 16, as well as for FY17. For the full year, the company is expecting substantial revenue growth, weighted towards H2. The company also announced a new tranche of its share buy-backs, between €56.25m and €75m, expected to close on 10 July at the latest.
Slightly disappointing guidance, 2017's potential likely to be unveiled in next quarter
03 Nov 16
Dialog reported its Q3 results, with sales coming in at $345.8m, corresponding to a growth of 40.7% sequentially and 4.7% yoy. The main contributor was, as usual, the Mobile Systems business line ($269.9m, +52% sequentially, +1.2% yoy), while Power Conversion accelerated to 54.4% yoy growth ($33.4m) and Connectivity pursued its recovery by showing growth again ($33.4, +17.6% sequentially, +7.7% yoy). The gross margin reached 46%, down 30bp yoy. Operating profit reached $61.4m, corresponding to a 9.3% operating margin. Net income came in at $46.3m. The company upgraded its guidance: Q4 revenues are expected to reach $345-375m, resulting in FY revenues of $1,193m at the midpoint of the guidance and to a 12% decrease yoy (compared to -15% in the previously communicated guidance). The underlying gross margin is expected to be a continuity of the one delivered during the year.
Downgraded guidance corresponding to inventory management, 2017 not likely at risk
28 Jul 16
Dialog reported its Q2 results, with sales coming in at $26m, corresponding to a sequential increase of 1.5% but to a 22.1% decrease yoy. The main contributor was, as usual, the Mobile Systems business line ($178m, -5.4% sequentially, -31.4% yoy), while Power Conversion accelerated to 46% yoy growth ($29m). Connectivity somewhat recovered from Q1 and displayed a slight decrease yoy ($28m, -2.1%). The gross margin reached 46.3%, down 20bp yoy. Operating profit reached $23m, corresponding to a 9.3% operating margin. Net income came in at $16.8m. Due to the continuing soft market conditions, the company downgraded again its guidance for the FY, and is now expecting revenues to decrease by c. 15%, although it will try to preserve profitability through rigorous cost control. The Q3 16 revenues are expected to be around $290-320m, with a gross margin in line with H1 16.
Guidance slashed for 2016, recovery not expected before 2017
04 May 16
Dialog reported its Q1 results, with sales coming in at $242m, corresponding to a decrease of 39.2% sequentially and 22.2% yoy. The main contributor was as usual the Mobile Systems business line ($188m, -43.7% sequentially, -26.4% yoy), while Connectivity witnessed a stop and displayed a 31.3% sequential increase and 23.7% yoy at €21m. The gross margin reached 44.5%, down 150bp yoy. Operating profit reached $151m, thanks to the €137m termination fee related to the failed Atmel merger. Without it, the operating margin would have fallen to 7.2%. Due to the soft market conditions, the company slashed its guidance for the FY, and is now expecting revenues to decrease by a high single-digit, while it will try to preserve profitability through rigorous cost control. A share buy-back programme of €37.5-50m was also announced, with an assumed share price of €30, which would lead to the acquisition of up to 1.66m shares.
Weak Q1 guidance, but growth confirmed for 2016
08 Mar 16
Dialog reported its Q4 and FY15 results. Concerning Q4, sales were down 8.5% yoy at $398m, mostly due to the drop in sales in Mobile Systems (-11.6% yoy, $334m). However, Power Conversion accelerated to +20.5%, but remained marginal in terms of volumes ($24m). The gross margin came in at 45.7% (down 60bp yoy), while the EBIT margin decreased to 20.4% vs. 24.2% in Q4 14. For the FY, revenues reached $1,355m, corresponding to a 17.2% increase compared to 2014, with 82.3% of revenues coming from the Mobile Systems division ($1,115m), which displayed an 18.2% growth. Connectivity was up 27.2% at $117m. The gross margin came in at 46.1% vs. 44.6% in 2014, and the EBIT margin gained 310bp at 19.2% vs. 16.1% in the previous year. For the next quarter, the company is expecting a traditional seasonal decrease in revenues, to the $230-245m range, which would correspond to a decrease yoy of between 26% and 21%. The gross margin is expected to be marginally lower compared to Q4, while it should reach a similar level in the full year 2016 compared to 2015. As usual, revenue growth should occur during H2. A new CFO has also been named to replace Jean-Michel Richard, who had announced months ago his retirement; the new CFO will be Wissam Jabre, who previously worked as Vice-President of Finance at AMD.
Dialog/Atmel: Act two. Before another twist?
14 Dec 15
Atmel, which is supposed to merge with Dialog at the beginning of 2016, announced on 11 December 2015 that it had received an unsolicited bid offer at $9 per share, vs. the cash and share proposal from Dialog ($4.65 in cash and 0.112 of a Dialog American depository receipt for each share of the stock) which offered around $8.6 at the 11 December 2015 closing price.
Recovery not reflected in the share price
25 Apr 17
Prelims for the year to January 2017 are in-line but more importantly they confirm the restructuring process is now complete, prove the commerciality of its cloud based platform and demonstrate a move towards higher margin services. PBT was £1.2m (against a loss last year), adjusted EBITDA grew 56% to £2m and cash from operations turned positive at £0.9m allowing a net cash position to be maintained. For this year, we expect PBT growth of 77% to £2.2m (previously £2.5m), implying a current PE rating of 15x. We reiterate our buy recommendation with a 2.2p price target as the turn around generated by Redstone has yet to be reflected in the share price.
Panmure Morning Note 25-04-2017
25 Apr 17
Blancco Technology, a leading provider of data erasure solutions and mobile device diagnostics, has issued a mixed Q3 trading update. On the positive side, revenue progression has been extremely strong, with a material acceleration in sales growth during the quarter: +48% CFX basis during 3Q17 vs +28% during 1H17. However, cash flow is weaker than expected and management has guided that year end net debt is expected to be £5.5m (previously we were looking for net debt of £3.6m). Due to the timing of cash flows management has identified the need for additional short term funding of £4m over the coming weeks.
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
Pickup in H2 organic growth as expected
20 Apr 17
Headline revenue growth of 19% reflects a full half contribution of ID Scan and a pickup in organic growth to 12% across the year driven by the excellent performance from the higher margin international services. The mix effects of this growth resulted in EBIT of £17m, 4% ahead of our forecasts, and a 1.1pp improvement in the operating margin.