Chipmaker Dialog posts strong Q4; eyes good growth in 2015

Reuters, Feb. 19, 2015 – 

German chipmaker Dialog Semiconductor posted a strong increase in fourth-quarter operating profit and said it expected another year of "good growth" in 2015, but said that its results are typically weaker in the first half than later in the year.

Dialog said on Thursday that quarterly earnings before interest and tax (EBIT), excluding special items, rose to $118 million, beating even the most optimistic estimate in a Reuters poll with an average forecast of $109 million.

"Given our current visibility, we expect 2015 to be another year of good growth," the company said in a statement, adding that revenue performance will be strongly weighted towards the second half of the year.

Dialog makes chips that manage power consumption of consumer electronic devices such as smartphones and tablet computers. Its main customers include Apple Inc and Samsung Electronics.

Dialog expects revenue in the current first quarter of between $265 million to $300 million. For the full year the company expects gross margin to remain broadly stable at last year's 44.5 percent. Last year gross margin, excluding special items was 45.3 percent.

Last month it had reported a 24 percent rise in fourth-quarter sales on the back of surging demand for its chips used in mobile phones, such as Apple's big-screen iPhone, which reported record sales in the holiday shopping season. (Reporting by Harro ten Wolde; Editing by Georgina Prodhan and Eric Auchard)

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