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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.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
09 Dec 16
Ideagen* (IDEA): Acquisition of IPI Solutions (CORP) | Lombard Risk Management* (LRM): Atos deal improves routes to German market (CORP) | Photo-Me* (PHTM): Upgrade to FY forecasts (CORP) In other news… Frontier Developments* (FDEV): ED coming to Xbox and Planet Coaster update (CORP) | LiDCO* (LID): Analyst interview (CORP) | Rude Health: Analyst interview
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
A Good Deal of Potential
07 Dec 16
The Millstream acquisition should generate substantial shareholder value in our view. It boosts adjusted EBIT by c.50% for just a £15.5m price tag, and the complementary customer set and product base create excellent cross selling opportunities. We raise our FY17 adjusted EPS estimate to 7.6p and introduce a FY18 estimate of 9.6p. PROACTIS is building its reputation for intelligent M&A and shrewd organic delivery; we expect to see further delivery on both fronts.