Full year revenue growth of 28% and strong cash flow generation
LONDON — (BUSINESS WIRE) — February 18, 2015 — Dialog Semiconductor plc (FWB: DLG), a provider of highly integrated power management, AC/DC, solid state lighting and Bluetooth(R) Smart wireless technology, today reports results for its fourth quarter and year ended 31 December 2014.
Q4 and full year 2014 financial highlights
- Q4 2014 IFRS Revenue, up 24% over Q4 2013 to $435 million. Full year IFRS revenue up 28% to $1,156 million.
- Full year IFRS gross margin at 44.5%
- Q4 2014 Underlying (*) EBITDA (**) up 50% to $129.6 million or 29.8% of revenue. Full year Underlying (*) EBITDA (**) up 55% to $269.4 million or 23.3% of revenue
- Q4 IFRS operating profit (EBIT) up 49% to $105.1million or 24.2% of revenue. Full year IFRS EBIT up 81% to $185.9 million or 16.1% of revenue
- IFRS full year tax rate at 18.5%, including one-off non-cash deferred tax credit of $17.8 million ; 29.0% IFRS tax rate excluding one-off
- Underlying (*) Q4 2014 diluted EPS up 67% over Q4 2013 to $1.17. Full year 2014 Underlying (*) diluted EPS up 58% to $2.27
- Cash from operating activities in Q4 2014 was up 158% to $119.3 million. Cash and cash equivalents balance as of 31 December 2014 was $324 million
Q4 and full year 2014 operational highlights
- Continued momentum with power management design wins, across new platforms and models at our largest customers
- Successfully delivered a steep ramp of new products to meet our customers demand
- Increased the content of our products and achieved an ASP of $2.66 in 2014, excluding Power Conversion products
- SmartBondTM remains the world's lowest power and smallest Bluetooth Smart system-on-chip
- Our quick charging and lighting segments made significant advancement
- Extended our customer base in Asia with our collaboration with MediaTek and LG
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
"I am extremely pleased with the exceptional business performance we have achieved in Q4 and over the full year. We have delivered uninterrupted annual revenue growth for the 8th consecutive year; while significantly increasing margins, investing in R&D and generating high cash returns to allow the company to return to a bank debt free position significantly ahead of schedule.
Our financial performance reflects our relentless focus on delivering competitive and differentiated products in high growth consumer electronics markets. We now have good visibility of another year of growth ahead in 2015, with Dialog at the core of a new generation of ultra-portable devices and low-power connected consumer electronics."
Outlook
Given our current visibility, we expect 2015 to be another year of good growth. As in previous years, revenue performance will be strongly weighted towards the second half of the year.
Q1 2015 revenue will reflect the expected seasonal pattern and deliver year on year growth. We expect revenue for Q1 2015 to be in the range of $265 to $300 million.
In line with the seasonal lower revenue, gross margin in Q1 2015 will decline sequentially but improve on a year-on-year basis. Gross margin in 2015 is expected to remain broadly at a similar level to the full year 2014.
Financial overview
| IFRS | Fourth | Full | |||||||||||
| Quarter | Year | ||||||||||||
| US$ million | 2014 | 2013 % | Var. | 2014 | 2013 | % Var. | |||||||
| Revenue | 435.0 | 351.4 | +24% | 1,156.1 | 901.4 | +28% | |||||||
| Gross Margin | 46.3% | 42.2% | 410bps | 44.5% | 39.0% | +550bps | |||||||
| R&D % | 14.3% | 14.6% | -30bps | 18.5% | 17.8% | +70bps | |||||||
| SG&A % | 8.2% | 8.6% | -40bps | 10.3% | 10.3% | 0bps | |||||||
| EBIT | 105.1 | 70.6 | +49% | 185.9 | 102.7 | +81% | |||||||
| EBIT % | 24.2% | 20.1% | +410bps | 16.1% | 11.4% | +470bps | |||||||
| Net income | 70.6 | 46.6 | +52% | 138.1 | 62.2 | +122% | |||||||
| Basic EPS $ | 1.05 | 0.71 | +48% | 2.05 | 0.95 | +116% | |||||||
| Diluted EPS $ | 0.95 | 0.66 | +44% | 1.93 | 0.92 | +110% | |||||||
| Cash flow from operating | 119.3 | 46.2 | +158% | 270.5 | 110.7 | +144% | |||||||
| activities | |||||||||||||
| Underlying | Fourth | Full | |||||||||||
| Quarter | Year | ||||||||||||
| US$ million | 2014 | 2013 | % Var. | 2014 | 2013 | % Var. | |||||||
| Revenue | 435.0 | 352.3 | +23% | 1,156.1 | 907.6 | +27% | |||||||
| Gross Margin | 46.6% | 43.0% | +360b | 45.3% | 40.5% | +480b | |||||||
| EBITDA | 129.6 | 86.2 | +50% | 269.4 | 174.2 | +55% | |||||||
| EBITDA % | 29.8% | 24.5% | +530b | 23.3% | 19.2% | +410b | |||||||
| EBIT | 117.9 | 76.4 | +54% | 230.3 | 139.6 | +65% | |||||||
| EBIT % | 27.1% | 21.7% | +540b | 19.9% | 15.4% | +450b | |||||||
| Net income | 89.2 | 52.1 | +71% | 172.2 | 97.6 | +76% | |||||||
| Basic EPS $ | 1.33 | 0.79 | +68% | 2.56 | 1.49 | +72% | |||||||
| Diluted EPS $ | 1.17 | 0.70 | +67% | 2.27 | 1.44 | +58% | |||||||
