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

Dialog Semiconductor Plc. / Quarter Results

Release of an Ad hoc announcement according to § 15
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The issuer is solely responsible for the content of
this announcement.

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Company reports revenue in second quarter of $45.0
million, achieving 25% growth over the first quarter of
2009 
Kirchheim/Teck, Germany, 28th July 2009 - Dialog
Semiconductor plc (FWB: DLG), a leading provider of
high integrated innovative Power Management 
Semiconductor solutions, today reports results for its
second quarter ending 26th June 2009.

Q2 2009 Financial Highlights   

  - Revenue for Q2 2009 was $45 million, an increase
of 25% over the prior     quarter and 31% over the
corresponding quarter of 2008 
  - Net profit in Q2 2009 of $3.3 million or 7.3% of
revenue compared to     $0.8 million  in prior quarter,
our seventh successive quarter of     profitability

  - Diluted earnings per share of  7 cents in the
quarter 
  - Total cash increased in Q2 2009 over prior quarter
by $2.7 million to     stand at $43.5 million. Dialog
remains debt free with credit lines     untapped

  - Received and recorded $2.3 million BenQ payment
settlement, benefiting     income statement and balance
sheet (as explained in Financial Overview) 
Q2 2009 Operational Highlights   

  - Continued design win success in the smartphone
market, now shipping to     three top tier smartphone
manufacturers 
  - Samsung's launch of their Alias 2 cellphone using
Dialog e-ink display     driver technology

  - Revenue diversification, with one of the top 5
cellphone manufacturers     emerging as a new 10%
customer for our advanced 3G/HSPA platform IC 
  - Successful launch of a new Power Management IC as
a companion device     for Intel(R) Atom(TM) series of
processors 

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Information and Explaination of the Issuer to this
News: 
Commenting on the results Dialog Chief Executive, Dr
Jalal Bagherli, said: 
'We had a strong second quarter with growth in
revenue, gross margins and net income. Through this
industry downturn, Dialog has continued to  make great
strides and is now emerging as one of  the leading
high performance Mixed-Signal semiconductor companies,
developing advanced and innovative products that target
high growth end markets.

We continue to be extremely encouraged by our design
win successes, as we add more top tier customers and
believe these will drive continued growth for Dialog.'

FINANCIAL OVERVIEW

Revenue in Q2 2009 was $45.0 million, an increase of
25% over the $36.0 million in the prior quarter and
increase of 31% on the $34.4 million of revenue
delivered in the corresponding quarter of 2008. This
includes $2.0 million of revenues in relation to a net
cash settlement of $2.3 million which we received and
recorded in the quarter. This cash settlement was 
against receivables which had previously been written
down and revenues that had not been recognised in 2006
as a result of the insolvency of BenQ Mobile. Excluding
this, Q2 2009 revenue was $43.0 million.

Gross margin for the second quarter was 45.7%,
positively impacted by 2.4 percentage points by the
BenQ settlement. This represents an increase of 9.0
percentage points over that achieved in the prior
quarter and an increase of 10.3 percentage points over
that achieved in Q2 2008. Excluding the impact of $2.0
million of revenue relating to the cash settlement from 
the BenQ insolvency, gross margin for Q2 2009 would
have been 43.3%.

In Q2 2009, net profit was $3.3 million or 7 cents per
diluted share, our seventh consecutive quarter of
profitability. This compares to a net profit of $0.8
million or 2 cents per diluted share in the prior
quarter and to a net profit of $0.3 million or 1 cent
per diluted share delivered in Q2 2008. Excluding the
effect of the cash settlement from the BenQ insolvency, 
net profit would have been $1.0 million or 2 cents per
share.

At the end of Q2 2009, we had a cash, cash equivalents
and restricted cash balance of $43.5 million. This
represents an increase of $2.7 million over the cash
and cash equivalents balance at the end of Q1 2009 and
an increase of $16.1 million over the cash, cash
equivalents and securities balance at the end of Q2
2008.

At the end of Q2 2009, our inventory level was $19.0
million, an increase of $1.4 million over the prior
quarter, in line with the increased seasonal demand as
we entered Q3-2009.

During Q2 2009, we continued to tightly manage our
Operating Expenses whilst investing in our sales and
marketing organisation. We achieved an SG&A rate of
15.5% and R&D rate of 22.4% of revenues. Excluding the
effect of onetime charges, SG&A and R&D, would have
been 14% and 21% respectively.

OPERATIONAL OVERVIEW

WIRELESS

Our success with smartphone products continues as we
now ship to three top tier manufacturers with leading
smartphone offerings in the market.  Samsung also
launched their Alias2 cellphone which includes our
e-ink driver technology in an innovative power saving
keyboard implementation.
Adding Samsung as a new volume customer is an
important milestone for Dialog and a result of our
recent focus on expanding our business in Asia.

We saw increased revenue contribution from our 3G/HSPA
platform customers as 3G technology continues to be
aggressively promoted by the carriers worldwide. In
addition, one of the top 5 global cellphone
manufacturers emerged as a greater than 10 percent
revenue contributor for Dialog in the quarter for our
3G/HSPA solution.

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 and 
module manufacturers on the tremendous value
proposition that this technology delivers over
traditional TFT LCD displays and active matrix OLED
competing technologies.

AUTOMOTIVE & INDUSTRIAL

During the quarter we launched the DA6001 power
management and clocking IC as a companion device for
the Intel (R) Atom(TM) processor. As the Atom processor
is becoming prevalent in many automotive infotainment,
industrial and the fast growing netbook markets, this
represents an exciting new opportunity for Dialog to
expand its addressable market. Dialog developed this
device in collaboration with Intel and a global Tier 1
infotainment customer and is the highest integrated
solution available on the market.

We have also recently announced a joint development
centre with TridonicAtco in Austria, a leading
industrial lighting manufacturer, to jointly develop
energy saving lighting and LED integrated circuits
which we see as an opportunity to capitalise on this
emerging trend in the industry.

Our current products in the automotive and industrial
segment continued to be impacted by the global economic
downturn in the quarter. However, we see modest signs
of recovery in our business going forward partially
attributed to the various government incentive packages
encouraging consumer car purchases.

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, given our positive first half results, we now
believe for the financial year 2009, our revenue will
be up by at least low double digits on that recorded in
the prior year. We expect to maintain profitability for
the year at least at a similar rate to that achieved in 
2008.

Dialog Semiconductor invites you today at 10 am CET to
listen in a live conference call to management's
discussion of Q2 2009 performance, as well as guidance
for financial 2009. To access the call please use the
following dial-in numbers: Germany: 0800 101 2072, UK:
0800 358 0886, US: 1 877 941 2930 with access code
4114032 required. An instant replay facility will be 
available for 30 days after the call and can be
accessed at +49 69 58 99 90 568 with access code
142062# (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 26th June 2009 is
available under the investor relations section of the
Company's web site.

 

For further information please contact:

Dialog Semiconductor    FD - London           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  claudine.schaetzle@fd.com  T
+49-7021-805-412  F +49-7021-805-200 
dialog@fd.com 
www.dialog-semiconductor.com 

Note to editors:

Dialog Semiconductor creates energy-efficient, highly
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 300 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, however, any
subsequent statement will supercede any previous
statement.
28.07.2009  Financial News transmitted by DGAP

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