UK Apple supplier Dialog Semiconductor has posted revised (unaudited) Q4 2018 revenues of $431 million, at the lower end of a guidance range of $430 – $470 million communicated to the market on October 31, 2018.
Dialog Semiconductor, based in Reading, will post its audited results for Q4 on March 6, 2019. The results suggests the immediate impact of Apple’ recent market travails may not be as dire, at least for this British supplier, as some analysts had anticipated.
Dialog said in a trading update: “Unaudited preliminary revenue for the full year 2018 was approximately US$1,442 million. Advanced Mixed Signal and Connectivity delivered strong year-on-year revenue growth due to the contribution from the acquisition of Silego Technology (completed on 1 November 2017) as well as strong year-on-year revenue growth in rapid charge and Bluetooth low energy products.”
The company added: “Dialog remains a highly cash generative business and at 31 December 2018 the Company anticipates a cash and cash equivalents balance of approximately US$678 million, representing a year-on-year increase of approximately US$199 million, and no debt.”
Apple in October last year agreed to buy a portion of Dialog’s business in a $600 million deal, expanding the iPhone maker’s chip operations in Europe. Dialog Semiconductor has furnished Apple with power management chips to help its devices manage battery life since the first iPhones came to market.
Under the deal, Apple bought patents, a team of about 300 engineers, most of whom already worked on chips for Apple devices, and Dialog offices in Britain, Italy and German. Half of the deal’s value was cash for the Dialog engineers and offices and the other half was prepayment to Dialog for supplying chips over the next three years, the companies said at the time.
Dialog’s power solutions are also found in e-cigarettes, blood pressure monitors and electric toothbrushes. In November Dialog said it was focussing fast-growing segments of the IoT, Mobile, Automotive and Computing & Storage markets.