Dialog with 69% revenue growth YoY

Revenue in Q1 2012 was $166.3 million, representing an increase of 68.9% over the $98.5 million delivered in the first quarter of 2011 and a sequential decrease of 3.3% on the $172.1 million of revenue delivered in the prior quarter. Gross margin in Q1 2012 was 36.9% of revenue. This represents an increase of 0.4 percentage points over that 36.5% achieved in the prior quarter and a decrease of 4.3 percentage points over the 41.2% achieved in Q1 2011. Q1 2012 underlying gross margin was 37.3% compared to 37.1% in Q4 2011. This incremental improvement to gross margin expansion has begun one quarter earlier than projected, having stabilised earlier in the first quarter. Operating profit on an IFRS basis in Q1 2012 was $12.3 million or 7.4% of revenue. This compares to the $8.0 million or 8.1% of revenue achieved in Q1 2011 and 12.5% of revenue achieved in the prior quarter. The underlying operating profit achieved in Q1 2012 was $21.5 million or 13.0% of revenue, compared with the underlying operating profit of $13.8 million or 14.0% of revenue in Q1 2011 and $26.1 million or 15.2 % in the prior quarter. In Q1 2012 underlying EBITDA was $27.1 million or 16.3% of revenue compared to $17.2 million or 17.5% in Q1 2011 and $33.3 million or 19.4% in the prior quarter. Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said: 'We have seen a very strong start to 2012 experiencing a lesser first quarter seasonal decline than normal due to the continued success of our trend setting Smartphone and Tablet customers. I am particularly pleased that we have achieved incremental gross margin improvement one quarter earlier than projected and believe that this gradual improvement will continue as the year progresses. During the quarter we also launched a successful $201 million convertible bond offering, strengthening our already robust cash balance, and ability to capitalise on potential acquisition opportunities going forward.' OUTLOOK In Q2 2012, the company expects to deliver revenue for the quarter in the range of $158 to $168 million, representing further significant year on year growth. The positive trend of gradual incremental gross margin improvement achieved in Q1, will continue through 2012, supported by our increasing supply chain visibility.