Dialog Semi anticipates revenue drop after Apple deal

Full year revenue was however up 7% over 2017 and amounted to USD 1,442 million. Q4 revenue and full year revenue include the contribution of Silego Technology Inc. Excluding the contribution of the acquisition of Silego, revenue was 11% below Q4 2017. Mobile Systems revenue was 13% below Q4 2017. The year-on-year performance was driven by softness in consumer demand and the reduction of our share of volume from Apple announced on 31 May 2018, partially offset by content increase in other platforms. Q4 gross margin at 48.6% and underlying gross margin at 48.7%. Full year gross margin at 47.9% and underlying gross margin at 48.3%, above 2017 and slightly ahead of the October guidance. Q4 operating profit amounted to USD 77.1 million and underlying operating profit of USD 103.4 million. Full year operating profit was USD 199.7 million and underlying operating profit of USD 281.6 million. The company says that all four operating business segments were profitable for the full year 2018. Another big event for the company occurred back on 11 October 2018, where Dialog reached an agreement with Apple to license certain of its power management technologies, transfer certain of its assets and over 300 employees to Apple to support chip research and development. “2018 was an important year for Dialog. Our agreement with Apple will enable us to generate immediate value for our shareholders while strengthening our long-term partnership. This has put us in a strong position to deliver on the next phase of revenue growth in our primary end-markets of consumer IoT and mobile. Our expertise and IP in mixed-signal ICs are aligned with our customers’ growing requirements for energy-efficient products,” says Dialog Chief Executive, Dr Jalal Bagherli, in a press release. “The investments we made in the organic and inorganic expansion of our business have helped us to deliver strong revenue growth during the year, despite specific customer headwinds. In 2018, revenue outside of Mobile Systems grew 33% year-on-year. We now have a healthy and diverse customer design-in pipeline, which coupled with a strong balance sheet and cash flow generation, gives me great confidence in the future of our business,” Bagherli concludes. The company's is anticipating revenues for Q1 2019 to be in the range of USD 270 million to USD 310 million and gross margin to be broadly in line with FY 2018. Dialog expects revenue for FY 2019 to decline from FY 2018 by single digit percentage points. As previously communicated, revenue from main PMIC for its largest customer, namely Apple, will decline over the next few years.