LONDON — (BUSINESS WIRE) — March 8, 2016 — Dialog Semiconductor plc (FWB: DLG), a provider of highly integrated power management, AC/DC power conversion, solid state lighting and Bluetooth(R) Smart wireless technology, today reports results for its fourth quarter and year ended 31 December 2015.
Q4 and full year 2015 financial highlights
- Full year revenue up 17% to $1,355 million. Q4 2015 revenue, down 9% over Q4 2014 to $397 million.
- Power Conversion Q4 2015 revenue up 16% over Q4 2014.
- Full year gross margin at 46.1%, up 160bps over full year 2014.
- Full year Underlying (*) EBITDA (**) up 33% to $359.5 million or 26.5% of revenue. Q4 2015 Underlying (*) EBITDA (**) down 9% to $117.5 million or 29.6% of revenue.
- Full year EBITDA (**) up 31% to $316.6 million or 23.4% of revenue. Q4 2015 EBITDA (**) down 19% to $97.7 million or 24.6% of revenue.
- Full year 2015 Underlying (*) diluted EPS up 33% to $3.02. Underlying (*) Q4 2015 diluted EPS down 17% over Q4 2014 to $0.97.
- Full year 2015 diluted EPS up 19% to $2.29. Q4 2015 diluted EPS down 32% over Q4 2014.
- Cash and cash equivalents balance as of 31 December 2015 was $567 million.
Q4 and full year 2015 operational highlights
- Continued design win momentum for power management with additional high volume custom and standard products design wins for next generation smartphones and tablets, at our main customers.
- Increased Bluetooth(R) Smart market share and launched the first ever Bluetooth(R) Smart Wearable-on-ChipTM to capture the high-growth opportunity within the IoT market.
- Gained a majority share of the rapid charging market, cementing our leadership position.
- Expanded business relationship with several Chinese smartphone makers with our sub-PMIC products through MediaTek LTE platforms.
- Entered the sensor market establishing a strategic partnership with Foxconn Technology Group's ShuShin Technology and Lite-On by way of our investment in Dyna Image.
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli, said:
"2015 has been an important year for Dialog as we work to broaden our customer base with new design wins and innovative technology developments in high-growth markets. I am very pleased to report that we achieved those strategic milestones while delivering uninterrupted annual revenue growth for a 9th consecutive year, while further improving margins and maintaining strong cash generation.
Throughout recent years we have been investing in R&D to prepare Dialog for changes to our end markets. We enter 2016 with a leading Mobile business, and rapidly expanding Connectivity and Power Conversion businesses. "
Outlook
Based on our current visibility, the expected softening of the smartphone market and the traditional seasonal pattern, we anticipate revenue for Q1 2016 to be in the range of $230 to $245m.
We continue to expect single digit year-on-year overall revenue growth for the full year 2016 and anticipate continuing strong momentum from our connectivity and power conversion products through 2016. As with previous years, revenue performance will be strongly weighted towards the second half of the year.
In line with the seasonal lower revenue, gross margin in Q1 2016 will be marginally below Q4 2015. Based on our current full year 2016 revenue guidance, gross margin in 2016 is expected to remain broadly in line with that achieved in 2015.
Financial overview
|
IFRS |
Fourth Quarter |
Full Year |
||||||||||||
| US$ million | 2015 | 2014 | Var. | 2015 | 2014 | Var. | ||||||||
| Revenue | 397.2 | 435.0 | -9% | 1,355.3 | 1,156.1 | +17% | ||||||||
| Gross Margin | 45.6% | 46.3% | -70bps | 46.1% | 44.5% | +160bps | ||||||||
| R&D %(1) | 13.6% | 14.3% | -70bps | 16.5% | 18.5% | -200bps | ||||||||
| SG&A % (1)(2) | 11.6% | 7.8% | +380bps | 10.5% | 10.0% | +50bps | ||||||||
| Operating profit | 81.3 | 105.1 | -23% | 259.7 | 185.9 | +40% | ||||||||
| Operating margin % | 20.5% | 24.2% | -370bps | 19.2% | 16.1% | +310bps | ||||||||
| Net income (3) | 52.6 | 73.6 | -29% | 177.3 | 138.1 | +28% | ||||||||
| Basic EPS $ (3) | 0.70 | 1.09 | -36% | 2.42 | 2.05 | +18% | ||||||||
| Diluted EPS $ (3) | 0.67 | 0.99 | -32% | 2.29 | 1.93 | +19% | ||||||||
|
Cash flow from operating activities |
109.7 | 119.3 | -8% | 317.7 | 270.5 | +17% | ||||||||
|
Underlying |
Fourth Quarter |
Full Year |
||||||||||||
| US$ million | 2015 | 2014 | Var. | 2015 | 2014 | Var. | ||||||||
| Revenue | 397.2 | 435.0 | -9% | 1,355.3 | 1,156.1 | +17% | ||||||||
| Gross Margin | 45.9% | 46.6% | -70bps | 46.7% | 45.3% | +140bps | ||||||||
| R&D %(1) | 12.7% | 13.4% | -70bps | 15.6% | 17.5% | -190bps | ||||||||
| SG&A % (1)(2) | 6.7% | 6.1% | +60bps | 7.7% | 7.9% | -20bps | ||||||||
| EBITDA | 117.5 | 129.6 | -9% | 359.5 | 269.4 | +33% | ||||||||
| EBITDA % | 29.6% | 29.8% | -20bps | 26.5% | 23.3% | +320bps | ||||||||
| Operating profit | 105.1 | 118.0 | -11% | 317.7 | 230.3 | +38% | ||||||||
| Operating margin % | 26.5% | 27.1% | -60bps | 23.4% | 19.9% | +350bps | ||||||||
| Net income | 77.6 | 89.2 | -13% | 238.4 | 172.2 | +38% | ||||||||
| Basic EPS $ | 1.02 | 1.33 | -23% | 3.25 | 2.56 | +27% | ||||||||
| Diluted EPS $ | 0.97 | 1.17 | -17% | 3.02 | 2.27 | +33% | ||||||||
