Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DIALOG SEMICONDUCTOR PLC. We currently have 9 research reports from 1 professional analysts.
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DIALOG SEMICONDUCTOR PLC
DIALOG SEMICONDUCTOR PLC
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. As a result of the new bid, Atmel’s directors will engage in buyout talks with the potential acquirer, currently unknown, as this proposal has been considered to have resulted in a "Company Superior Proposal" as defined in the Dialog merger agreement. Atmel’s board said it was advising against the unsolicited new offer and there was no assurance the bid would result in a deal. The directors continue to recommend shareholders to back the merger with Dialog, which remains in effect.
Additional information after the final release and Apple's results
28 Oct 15
Dialog published its final Q3 15 release, after the accidental publication on 26 October. The additional figures provided are mainly about segmental profitability. With no surprises, Mobile systems displayed the best performance, reaching 29.7%, a 400bp increase yoy and 60bp sequentially, while Power conversion is still negative at -25.6%, a 100bp increase yoy but a 60bp decrease sequentially. Management also had a conference call.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.