LONDON, UK / ACCESSWIRE / May 1, 2020 / Dialog Semiconductor Plc (XETRA:DLG) withdraws its outlook for the full year 2020 due to lack of visibility for the second half of the year.
On 4 March 2020, Dialog indicated that for FY 2020, revenue excluding its licensed main PMICs was expected to grow in the approximately mid teens percentage range and total Group revenue was expected to be second half weighted with declining revenue from legacy licensed main PMICs. Additionally, the Company expected, total Group revenue for FY 2020 to decline from FY 2019 US$1,420 million in approximately the mid teens percentage point range, excluding any revenue from the announced acquisition of Adesto Technologies Corporation. Based on this revenue, in FY 2020 Dialog anticipated underlying1 gross margin to continue on a gradual upward trend. The March outlook assumed a return to normal for supply chain and contract manufacturers by Q2 2020.
Although the situation of our supply chain and contract manufacturers is close to being fully operational, and the level of customer engagements continues as planned, the ongoing economic uncertainty caused by the COVID-19 pandemic is resulting in lower than usual visibility in our outlook for the second half of the year. Due to this, we are withdrawing the FY 2020 outlook communicated on 4 March 2020.
Our fabless business model and the strength of our balance sheet provide us with financial resilience and operational flexibility to successfully navigate the current circumstances. We remain confident in our structural growth prospects as we build a more diverse mixed-signal business with a balanced market exposure, focused in high-growth segments of our target end markets.
The Company will publish its results for the quarter ended 27 March 2020 on 6 May 2020.
1. Underlying measures of performance quoted in this announcement are non-IFRS measures. Our use of underlying measures is explained on pages 183 to 189 of our 2019 Annual Report and Accounts. Reconciliations of the underlying measures to the nearest equivalent IFRS measures will be presented in our Q1 2020 Interim Report.
Director, Investor Relations
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About Dialog Semiconductor
Dialog Semiconductor is a leading provider of integrated circuits (ICs) that power mobile devices and the Internet of Things. Dialog solutions are integral to some of today's leading mobile devices and the enabling element for increasing performance and productivity on the go. From making smartphones more power efficient and shortening charging times, enabling home appliances to be controlled from anywhere, to connecting the next generation of wearable devices, Dialog's decades of experience and world-class innovation help manufacturers get to what's next.
Dialog operates a fabless business model and is a socially responsible employer pursuing many programs to benefit the employees, community, other stakeholders and the environment in which we operate. Dialog Semiconductor Plc is headquartered in London with a global sales, R&D and marketing organization. In 2019, it had approximately $1.4 billion in revenue. It currently has approximately 2,000 employees worldwide. The company is listed on the Frankfurt (FWB: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006). For more information, visit www.dialog-semiconductor.com.
Forward Looking Statements
This press release contains 'forward-looking statements' that reflect management's current views with respect to future events. The words 'anticipate,' 'believe,' 'estimate', 'expect,' 'intend,' 'may,' 'plan,' 'project' and 'should' and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in the semiconductor and telecommunications markets; changes in currency exchange rates and interest rates, the timing of customer orders and manufacturing lead times, insufficient, excess or obsolete inventory, the impact of competing products and their pricing, political risks in the countries in which we operate or sale and supply constraints. If any of these or other risks and uncertainties occur (some of which are described under the heading 'Managing risk and uncertainty' in Dialog Semiconductor's most recent Annual Report) or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement which speaks only as of the date on which it is made, however, any subsequent statement will supersede any previous statement.
SOURCE: Dialog Semiconductor Plc.