Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR ANNOUNCES ITS RESULTS FOR THE FIRST QUARTER OF 2009

Dialog Semiconductor Plc. / Quarter Results

Release of an Ad hoc announcement according to § 15
WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of
this announcement.

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Company reports revenue in first quarter of $36.0
million, achieving 14% growth over the first quarter of
2008 
Kirchheim/Teck, Germany, 28th April 2009 - Dialog
Semiconductor plc (FWB: DLG), a leading provider of
Power Management Semiconductor solutions, today reports
its first quarter ending 27th March 2009 results.

Q1 2009 Financial Highlights   

  - Revenue for Q1 2009 was $36.0 million, an increase
of 14% over the     corresponding quarter of 2008.

  - Cash and cash equivalents increased in Q1 2009
over prior quarter by     $3.9 million to stand at
$40.8 million. Dialog remains debt free with     credit
lines untapped.

  - Recorded sixth consecutive quarter of
profitability with a net profit     in Q1 2009 of $0.8
million or 2.2% of revenue compared to $68,000 in     
Q1 2008.

  - Inventory levels further reduced in Q1 2009 by
$2.4 million to $17.5     million.

Q1 2009 Operational Highlights   

  - Successful launch of our new Platform Power
Management IC (DA9052) -     offering the Industry's
highest level of integration and     configurability
for a Power Management standard product.

  - First volume shipments of our e-ink display driver
technology to a Tier     1 Cellphone manufacturer.

  - Continued ramp of our expanded base of six
customers for our advanced     3G/HSPA integrated
solutions, including adoption of the technology in    
the emerging netbook market.

  - Continued design win success in the Smartphone
Market.


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Information and Explaination of the Issuer to this
News: 
Commenting on the results Dialog Chief Executive, Dr
Jalal Bagherli, said: 
'Our performance in the first quarter exemplifies our
commitment to our strategy. Despite the current
economic conditions, we have maintained the positive
momentum we created in 2008 with an impressive start
to this year.

'We continue to execute on our strategy of market
share expansion, customer diversification and
transition to a more balanced portfolio of standard 
products. Additionally, we have created deeper
relationships with our customers and suppliers while
continuing to lead with arguably the highest integrated
energy efficient power management products on the
market today.' 
 FINANCIAL OVERVIEW

Revenue in Q1 2009 was $36.0 million, an increase of
14% over the $31.5 million in the first quarter of 2008
and a sequential decrease of 31% on the $51.9 million
of revenue delivered in the prior quarter. This first 
quarter is typically the lowest quarter of our
financial year due to the seasonally lower consumer
demand for our wireless segment products, compounded
further this year with the difficult global economic
conditions.
However, despite these negative market conditions, we
are extremely pleased to have achieved such an increase
in our sales above 2008's comparative period.

In Q1 2009, net profit was $0.8 million or 2 cents per
diluted share: our sixth consecutive quarter of
profitability. This compares to a net profit of $68,000
or 0 cents per diluted share in Q1 2008 and to a net
profit of $4.6 million or 10 cents per diluted share
delivered in Q4 2008.

Gross margin for the first quarter was 36.7%. This
represents an increase of 3.2 percentage points over
the 33.5% achieved in the comparative period last year
and a decrease of 5.4 percentage points over the 42.1%
achieved in Q4 2008. Excluding the impact of Non
Recurring Engineering (NRE) income of $2.3 million
recorded in the quarter, gross margin for Q1 2009 would 
have been 39.2%.

At the end of Q1 2009, our inventory level was $17.5
million: a reduction of $2.4 million over the prior
quarter.  This continued improvement further 
demonstrates our ability to efficiently manage our
supply chain.

At the end of Q1 2009, we had a cash and cash
equivalents balance of $40.8 million. This represents
an increase of $12.2 million over the cash and cash
equivalents balance at the end of Q1 2008 and an
increase of $3.9 million over the prior quarter. During
the quarter, we generated $5.0 million of cash from
operations, compared to the cash outflow of $5.6 
million recorded in Q1 2008. We are very encouraged by
our continuing ability to generate positive cash from
our operations, especially in the challenging first
quarter of our financial year. We remain debt free and 
our credit facilities remain untapped.

We continued to tightly manage our Operating Expenses
in Q1 2009, ensuring we remained profitable.  We
achieved competitive rates of SG&A at 11.8% and R&D at
22.2% of revenues despite the seasonally lower trading
quarter.

On April 17th 2009, we received notification of a net
cash settlement of approximately $2.2 million against a
receivable which had previously been written down in
2006 as a result of the insolvency of BenQ Mobile. This 
will be accounted for in our Q2 2009 financial
statements.

OPERATIONAL OVERVIEW

WIRELESS

During the first quarter of 2009, we continued to gain
significant traction in the market, particularly with
some of the newly introduced products.
Within the wireless segment, we have launched a very
high integrated configurable platform power management
IC, which is a novel approach and addresses a wide
range of portable media consumer and Smartphone 
applications. We believe this will allow us to
participate in new platforms with the key application
processor providers beyond our current relationships.

Our business continues to be driven by the success of
our growing range of 3G/HSPA integrated power
management and audio products, and our customer base
now includes six Cellular customers. Additionally, we
continue to see the adoption of our solutions by
leading Smartphone manufacturers in more of their
models. In the second half of 2009, we expect to see
increased revenue from these design wins as our
customers advance in their product launch and
production ramp.

During the quarter, we began shipping in volume our
e-ink driver technology into a Tier 1 Cellphone
manufacturer whose product will be introduced to the
market shortly. Our Smartxtend(TM) passive matrix OLED
developments remain
on track for production silicon at the end of this
year. We continue to engage positively in discussions
with the Tier 1 Cellphone manufacturers on the
tremendous  value proposition - greater than 30% power
and cost savings, that the SmartXtend(TM) technology
delivers over traditional TFT LCD
displays and active matrix OLED competing technologies.

AUTOMOTIVE & INDUSTRIAL

Despite the difficult global environment the current
automotive industry is experiencing, we continued to
see demand for our power control and sensing 
technologies in Q1 2009, driven by the growing trend
for new electric and hybrid technologies within the
automotive industry. We have successfully engaged with
a Tier 1 supplier and existing customer in the
development of a new advanced sensor processing device
which complements our existing business and expect to
see first samples in the second half of this year.

 

We will continue to launch new standard products which
will expand and complement the markets which we address
with our power management technology including
in-vehicle infotainment and other embedded 
applications. Within the industrial part of our
business we continue to engage in joint development of
products with customers for energy saving integrated
circuits, supporting advanced fluorescent, high
intensity and LED lighting applications.

OUTLOOK

Due to the current economic conditions, we retain a
cautious outlook on our business for 2009 and continue
to carefully manage operating expenses and cash.
However, with the positive start to the year in the
first quarter, we now believe in the first half of 2009
our revenue will be up on that recorded in the first
half of 2008. We maintain our previous outlook to 
achieve year-on-year growth for 2009 and we expect to
maintain profitability for the year at a similar rate
to that achieved in 2008.

Dialog Semiconductor invites you today at 09:30 GMT/
10:30 CET to listen in a live conference call to
managements discussion of Q1 2009 performance, as well
as guidance for financial 2009. To access the call
please use the following dial-in numbers: Germany (free
call): 0800 101 4960, UK: 01452 569 393, US: 1 866 434
1089 with no access code required. An instant replay 
facility will be available for 30 days after the call
and can be accessed at 0800 101 3104 (Germany). An
audio replay of the conference call will also be posted
soon thereafter on the company's website at: 
http://www.diasemi.com/investor_relations.php

Additional information to this adhoc release including
the company's consolidated income statement,
consolidated balance sheet and consolidated statements
of cash flows for the period ending 27th March 2009 is
available under the investor relations section of the
Company's web site.


Note to editors:

Dialog Semiconductor creates energy-efficient,
integrated, mixed-signal circuits optimised for
personal mobile, lighting & display and automotive 
applications. The company provides flexible and
dynamic support, world-class innovation and the
assurance of dealing with an established business
partner.  Customers with a significant contribution to
revenue include Sony-Ericsson, Apple, Bosch and
TridonicAtco.

With its unique focus and expertise in system power
management, Dialog brings decades of experience to the
rapid development of integrated circuits for power
management, audio, display processing and control.
Dialog's processor companion chips are essential for
enhancing both the performance of hand-held products
and the consumers' multimedia experience.
With world-class manufacturing partners, Dialog
operates a fabless business model.

Dialog Semiconductor plc is headquartered near
Stuttgart with a global sales, R&D and marketing
organisation. In 2008, it had more than $160 million in
revenue and was the fastest growing European public 
semiconductor company, achieving a growth rate of more
than 85%. It currently has approximately 290 employees.
The company is listed on the Frankfurt (FWB: DLG) stock
exchange.

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 'Risks and their management' 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.

For further information please contact:
Dialog Semiconductor          FD - London          A&B
FD - Frankfurt Neue Straße 95                Erwan
Gouraud        Claudine Schaetzle D-73230
Kirchheim/Teck        T +44 20 7831 3113   T +49 69
920 37 185 Germany                      
erwan.gouraud@fd.com c.schaetzle@abfd.de T
+49-7021-805-412 F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com


28.04.2009  Financial News transmitted by DGAP

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