Dialog's record quarter

Revenue in Q3 2012 was $180.0 million, representing a sequential increase of 12.8% on the $159.5 million of revenue delivered in the prior quarter and an increase of 28.0% over the $140.6 million delivered in the third quarter of 2011. R&D in Q3 2012 stood at 18.8% of revenue, compared to 19.1% in the prior quarter and 17.7% in Q3 2011. Underlying(*) R&D in Q3 2012 stood at 18.0% of revenue respectively, compared to 16.9% in Q3 2011. Our on-going investment in R&D underpins our strategic agenda of continuous innovation, extending our product portfolio for portable platforms and broadening of our customer base. Operating profitability on an IFRS basis has also continued to improve on a sequential basis. In Q3 2012, Operating Profit was $17.5 million or 9.7% of revenue. This compares to the $13.4 million or 8.4% of revenue achieved in the prior quarter and $19.1 million or 13.6% of revenue achieved in Q3 2011. The underlying(*) operating profit achieved in Q3 2012 was $21.8 million or 12.1% of revenue, compared with the underlying(*) operating profit of $16.9 million or 10.6% in the prior quarter and $22.8 million or 16.2% of revenue in Q3 2011. Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said: “With another record revenue quarter, Dialog has continued to deliver strong year-over-year growth momentum with our business performing well across all key metrics. We are particularly pleased to have delivered a third successive quarter of incremental gross margin improvement.” Dialog believe that the positive trend of gradual incremental gross margin improvement achieved in the first three quarters of 2012 will continue in Q4, supported by their increasing supply chain visibility.