Business |
Dialog Semi expects better first quarter than anticipated
Back in early March 2019, Dialog indicated that it expected gross margin for Q1 2019 to be broadly in line with FY 2018 (FY 2018 gross margin: 47.9%; FY 2018 underlying gross margin: 48.3%). However, the company now states that the outlook looks better than expected.
The company now expects Q1 2019 gross margin of approximately 49.3% and Q1 2019 underlying gross margin of approximately 49.6%. Both measures include 80bps positive impact from non-recurring items. The remaining favorable movement was mostly driven by product mix and lower manufacturing costs.
Additionally, in Q1 2019 the Company expects operating profit of approximately USD 25 million and underlying operating profit of approximately USD 47 million. Both measures include other operating income of approximately USD 4 million, comprising income from specific non-recurring engineering contracts.
In Q1 2019, the Company expects revenue of approximately USD 295 million. At 29 March 2019, the Company had USD 690 million of cash and cash equivalents.
The company will publish its results for the quarter ended 29 March 2019 on 9 May 2019.
