Dialog (NASDAQ:DLGS)
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Dialog Semiconductor plc (FWB: DLG), a leading provider of power
management semiconductor solutions, announces results for the
Financial Year ended 31 December 2006.
OVERVIEW
-- Dialog ends FY 2006 with higher cash and securities balances,
a growing product portfolio and a more diversified customer
base, despite significant market challenges during the year.
-- Dialog reports revenues for 2006 of EUR 71.3m (2005: EUR
129.4m) with a net loss after restructuring charges and asset
write downs of EUR 33.4m (2005: EUR 23.3m), impacted by the
insolvency of BenQ Mobile GmbH; a delay in the mobile phone
market's transition from 2G to 3G technology; and Dialog's
strategic and planned withdrawal from the lower end of the
Display Screen market.
-- Q4 06 revenues stand at EUR 10.5m (Q4 2005: EUR 39.2m) with a
net loss of EUR 7.0m (Q4 2005: EUR 21.9m) after restructuring
charges and foreign exchange translation costs.
-- New business wins over the recent months have been very
encouraging, supporting management's confidence in a return to
growth during H2 2007 and beyond.
-- Operational cash inflows for FY 2006 stand at EUR 12.3m (2005:
EUR 10.3m), contributing to increased cash and securities
balances of EUR 39.0m (2005: EUR 31.8m) and maintaining
Dialog's zero debt.
Commenting on the results Dialog Chief Executive, Dr Jalal
Bagherli, said:
'2006 has been a year of deep strategic change for Dialog. We
begin 2007 with a strong cash position, our lowest inventory levels
since 1999 and a broader base of international customers. I am pleased
with the progress we have made towards building a solid, lower cost
platform for our business from which we can now make good on our
strategy of delivering profitable, sustainable growth for our
shareholders.'
OPERATIONAL HIGHLIGHTS
Financial Year 2006 was a year of strategic change at Dialog.
During the period, the Company invested significant resources in a
number of key operational measures, each designed to support the
delivery of long-term, sustainable growth.
Building a lower cost platform
The Board and management of Dialog remain committed to the
development of a more efficient, lower cost platform from which the
Company can embrace the new, higher growth opportunities open to it.
In line with this commitment, 2006 saw Dialog implement a number of
strategic measures aimed at reducing the cost base and improving
margin performance.
Firstly, in February, Dialog delivered on its ambition to spin out
its non-core Imaging division, Dialog Imaging Systems.
Secondly, in September, Dialog announced its decision to transfer
its test facilities to dedicated outsourced test organisations in
Asia. The transfer is on track for completion in April 2007 and is
estimated to result in annual cost savings of approximately EUR 3.0m.
This move now prompts Dialog to change its functional currency from
Euro to US Dollar effective 1 January 2007 and Dialog will report in
US Dollars with a Euro convenience translation from this date.
In Q4 06 management announced its decision to terminate Dialog's
American Depositary Receipt programmes (ADRs) and to de-register from
NASDAQ. Together, these measures will deliver a further reduction in
Dialog's annualised costs.
Product: identifying higher growth opportunities
As a result of these cost reduction measures, Dialog is now in a
strong position to take advantage of a number of higher growth, higher
margin opportunities. Whilst these opportunities sit primarily in the
growing 3G and smart phone segments of the mobile phone market,
Dialog, by virtue of its core power management and audio expertise is
seeing further traction within a number of consumer handheld product
segments such as GPS personal navigators and Multimedia players.
In pursuit of these opportunities, Dialog has made a series of
important technology investments during the year, as well as forging
some key strategic partnerships.
For example, in June, Dialog announced a partnership with E-Ink
for paper thin display system drivers. This initiative has already
resulted in business with an early adopter customer and we expect
revenue to ramp up in 2008 with multiple customers. Dialog is also in
the early stages of a partnership with a Japanese company aimed at
co-operation on OLED display drivers for cell phones, positioning the
Company for entry into this emerging high growth segment in 2008.
In Dialog's Automotive and Industrial division, further progress
has been made to expand the Company's business with leading automotive
component producers, creating an intelligent highly integrated motor
controller for car seatbelt traction and electric windows. This
business builds upon the technology already implemented during the
past two years in our growing production of ICs for car windscreen
wipers.
During FY 06 Dialog invested further marketing and technical
resources in engaging with major companies in the consumer electronics
market. Dialog, in tandem with its partners, is developing a number of
highly optimized and integrated power management ICs for battery
operated consumer products in order to address these new
opportunities.
As a result of these efforts, a Tier 1 consumer electronics
company is currently carrying out detailed evaluation of a Dialog
sample product which is expected to be completed during Q1 07.
Feedback from this process has been such that - on completion of the
evaluation - management expects the Tier 1 Company to select this
product for volume production; a decision which would lead to a
contribution to Dialog revenues during H2 2007.
Strengthening Board and management
In addition to improving Dialog's cost base and opportunity
pipeline, significant effort was made during 2006 to align the
knowledge and expertise of senior management with Dialog's business
objectives.
Dialog has made a number of important hires during the year.
Firstly, Jean-Michel Richard joined the Company as CFO in October to
support and accelerate Dialog's corporate and cost-reduction
initiatives. During 2006, Dialog appointed Udo Kratz, Manoj
Thanigasalam and Jurgen Friedel as heads of its Business Units,
intended to streamline Dialog's product lines and enhance its focus on
market growth opportunities.
In 2006 Dialog also welcomed four new Non Executive Directors to
the Board, Peter Weber, Chris Burke, Russ Shaw and Peter Tan. Their
combined expertise in marketing, the wireless sector and the Far East
will stand the business in good stead as it prepares for growth in
2007.
FINANCIAL PERFORMANCE
Revenues for Q4 2006 stood at EUR 10.5m (Q4 2005: EUR 39.2m) and
Dialog posted a net loss for the quarter of EUR 7.0m (Q4 2005: EUR
21.9m). This net loss included a EUR 133,000 charge related to
strategic restructuring as well as a EUR 565,000 foreign exchange
translation loss driven by a weaker dollar. The Company also booked an
additional net EUR 61,000 charge relating to the insolvency of BenQ
Mobile GmbH and can confirm that, as forecast, Dialog has no remaining
exposure to BenQ Mobile GmbH.
Revenues for the full year stood at EUR 71.3 m, a reduction from
EUR 129.4 m in 2005. This reduction was due in part to the strategic
decisions taken during the year to focus on sustainable profitable
growth and partly due to unforeseen factors, such as the delay in the
market transition from 2G to 3G products, the BenQ Mobile GmbH closure
and the insolvency of an Asian customer, all of which impacted our
trading performance. Consequently, operating profit fell from EUR 2.7
m to an operating loss of EUR 31.1 m. The net loss grew from EUR 23.3
m to EUR 33.4 m at the year end.
Our cash and securities balance increased to EUR 39.0m (2005: EUR
31.8m) and the Company remains debt free.
2007 STRATEGY
Going forward, Dialog will continue to fine tune its strategy to
ensure that the company is well positioned to deliver sustainable
growth. For the remainder of 2007, Dialog's focus will remain on
developing and implementing the following strategic actions:
-- Growing its existing business by leveraging core power
management and audio expertise;
-- Broadening its international focus and customer base; and
-- Continuing to improve business practices and operational
efficiencies
In addition, Dialog will continue to extend and develop its
management team in order to support these strategic goals.
OUTLOOK
Management is confident that FY 2007 will amount to a year of
growth for the Company.
A similar set of market conditions to those experienced in Q4 2006
are expected to prevail in H1 2007. However, with the commencement in
H1 2007 of volume production in Dialog's new 3G offering, the Company
expects growth to accelerate throughout H2 2007. This increase is
expected to be driven by a broadened product range targeting high
growth opportunities in mobile phone, consumer, automotive and
industrial markets and supported by a strengthened and diversified
customer base.
The Company's annual financial statements for the year ending
December 31, 2006 has been prepared in accordance with International
Financial Reporting Standards (IFRS).
Information about Dialog Semiconductor
Dialog Semiconductor develops and supplies power management, audio
and display driver technology, targeting the wireless, automotive and
industrial markets. The company's expertise in mixed signal design,
with products manufactured entirely in CMOS technology, enhances the
performance and features of wireless, hand-held and portable
electronic products. Its technology is also used in intelligent
control circuits in automotive and industrial applications. Dialog
Semiconductor plc is headquartered near Stuttgart, Germany with
operating facilities in the UK, the USA, Austria, Japan and Taiwan.
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 'Risk Factors' in Dialog Semiconductor's
most recent Annual Report and under the heading 'Risk Factors' in
Dialog Semiconductor's most recent Annual Report on Form 20-F filed
with the Securities and Exchange Commission), 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.
Un-audited Consolidated Income Statement
-0-
*T
Three months Three months
(in thousands of ended ended Year ended Year ended
EUR, except per December 31, December 31, December 31, December 31,
share data) 2006 2005 2006 2005
Revenues 10,458 39,190 71,268 129,406
Cost of sales (9,486) (30,727) (57,989) (92,529)
Gross profit 972 8,463 13,279 36,877
Selling and
marketing
expenses (1,341) (1,849) (5,455) (7,205)
General and
administrative
expenses (829) (2,321) (13,386) (6,349)
Research and
development
expenses (5,592) (5,161) (20,885) (20,624)
Restructuring and
related
impairment
charges (133) (4,639) -
Operating profit
(loss) (6,923) (868) (31,086) 2,699
Interest income 356 222 1,029 852
Interest expense (32) (47) (155) (129)
Foreign currency
exchange gains
and losses, net (565) 142 (1,581) 1,018
Other income - - - 28
Result before
income taxes (7,164) (551) (31,793) 4,468
Income tax benefit
(expense) 213 (15,230) 120 (15,296)
Net loss from
continuing
operations (6,951) (15,781) (31,673) (10,828)
Loss from
discontinued
operations - (6,162) (1,720) (12,517)
Net loss (6,951) (21,943) (33,393) (23,345)
Loss per share
Basic and diluted (0.16) (0.50) (0.75) (0.53)
Net loss per share
from continuing
operations Basic
and diluted (0.16) (0.36) (0.71) (0.25)
Weighted average
number of shares
(in thousands)
Basic and diluted 44,680 44,256 44,549 44,173
*T
Un-audited Consolidated Balance Sheet
-0-
*T
(in thousands of EUR) At December 31, At December 31,
2006 2005
ASSETS
Cash and cash equivalents 24,302 16,920
Available-for-sale financial assets 14,681 14,890
Trade accounts receivable, net 3,540 28,364
Inventories 5,659 17,155
Prepaid expenses 372 505
Other current assets 1,098 1,257
49,652 79,091
Non current assets classified as
held for sale 1,057 -
Total current assets 50,709 79,091
Property, plant and equipment, net
9,420 15,710
Intangible assets 1,198 7,175
Investments 1,229 -
Deposits 175 205
Assets for current tax 336 -
Prepaid expenses - 957
Total non-current assets 12,358 24,047
TOTAL ASSETS 63,067 103,138
LIABILITIES AND SHAREHOLDERS'
EQUITY
Trade accounts payable 4,571 8,987
Provisions 1,085 194
Income taxes payable 21 24
Other current liabilities 3,776 5,103
Total current liabilities 9,453 14,308
Total non-current liabilities - 2,932
Ordinary Shares 7,028 7,028
Additional paid-in capital 168,969 168,832
Accumulated deficit (121,136) (88,621)
Other reserves (1,071) (1,090)
Employee stock purchase plan shares (176) (251)
Net Shareholders' equity 53,614 85,898
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 63,067 103,138
*T
Un-audited Consolidated Statements of Cash Flows
-0-
*T
Year ended Year ended
December 31, December 31,
(in thousands of EUR) 2006 2005
Cash flows from operating activities:
Net income (loss) (33,393) (23,345)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Recovery of investment - (28)
Restructuring and related impairment
charges 4,152 -
Write-down of inventories 5,993 6,576
Write-down of trade accounts receivable 2,006 -
Expense related to stock compensation 878 1,052
Depreciation of property, plant and
equipment 5,377 7,619
Impairment of imaging assets - 3,917
Amortization of intangible assets 2,946 2,807
Impairment of deferred tax asset - 15,282
Losses on disposals of fixed assets 1,117 42
Interest income, net (874) (723)
Other income tax expense (120) 14
Changes in working capital:
Trade accounts receivable 22,792 (4,307)
Inventories 5,503 6,063
Prepaid expenses 117 235
Trade accounts payable (4,411) (6,406)
Provisions (133) 24
Other assets and liabilities (663) 1,025
Cash generated from operations 11,287 9,847
Interest paid (6) (1)
Interest received 1,070 481
Income taxes paid (37) (28)
Cash provided by operating activities 12,314 10,299
Cash flows from investing activities:
Recovery of investment - 28
Purchases of property, plant and equipment (2,832) (4,036)
Purchases of intangible assets (1,011) (5,528)
Investments and deposits made (1,187) (7)
Sale of available-for-sale financial assets - 2,009
Cash used for investing activities (5,030) (7,534)
Cash flows from financing activities:
Sale of employee stock purchase plan shares 212 96
Cash provided by financing activities 212 96
Cash provided by operating, investing and
financing activities 7,496 2,861
Effect of foreign exchange rate changes on
cash and cash equivalents (114) 82
Net increase in cash and cash equivalents 7,382 2,943
Cash and cash equivalents at beginning of
period 16,920 13,977
Cash and cash equivalents at end of period 24,302 16,920
*T
-0-
*T
Language: English
Issuer: Dialog Semiconductor Plc.
Neue Strasse 95
73230 Kirchheim/Teck-Nabern Deutschland
Phone: +49 7021 805-0
Fax: +49 7021 805-100
E-mail: jm.richard@diasemi.com
WWW: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Indices: MIDCAP, PRIMEALL, TECHALLSHARE
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Dusseldorf, Stuttgart, Munchen, Hamburg;
Foreign Exchange(s) Nasdaq
*T
Dialog Semiconductor plc (FWB: DLG), a leading provider of power
management semiconductor solutions, announces results for the Financial
Year ended 31 December 2006.
OVERVIEW
Dialog ends FY 2006 with higher cash and securities balances, a
growing product portfolio and a more diversified customer base,
despite significant market challenges during the year.
Dialog reports revenues for 2006 of EUR 71.3m (2005: EUR 129.4m) with
a net loss after restructuring charges and asset write downs of EUR
33.4m (2005: EUR 23.3m), impacted by the insolvency of BenQ Mobile
GmbH; a delay in the mobile phone market's transition from 2G to 3G
technology; and Dialog's strategic and planned withdrawal from the
lower end of the Display Screen market.
Q4 06 revenues stand at EUR 10.5m (Q4 2005: EUR 39.2m) with a net loss
of EUR 7.0m (Q4 2005: EUR 21.9m) after restructuring charges and
foreign exchange translation costs.
New business wins over the recent months have been very encouraging,
supporting management's confidence in a return to growth during H2
2007 and beyond.
Operational cash inflows for FY 2006 stand at EUR 12.3m (2005: EUR
10.3m), contributing to increased cash and securities balances of EUR
39.0m (2005: EUR 31.8m) and maintaining Dialog's zero debt.
Commenting on the results Dialog Chief Executive, Dr Jalal Bagherli,
said:
'2006 has been a year of deep strategic change for Dialog. We begin 2007
with a strong cash position, our lowest inventory levels since 1999 and
a broader base of international customers. I am pleased with the
progress we have made towards building a solid, lower cost platform for
our business from which we can now make good on our strategy of
delivering profitable, sustainable growth for our shareholders.'
OPERATIONAL HIGHLIGHTS
Financial Year 2006 was a year of strategic change at Dialog. During the
period, the Company invested significant resources in a number of key
operational measures, each designed to support the delivery of
long-term, sustainable growth.
Building a lower cost platform
The Board and management of Dialog remain committed to the development
of a more efficient, lower cost platform from which the Company can
embrace the new, higher growth opportunities open to it. In line with
this commitment, 2006 saw Dialog implement a number of strategic
measures aimed at reducing the cost base and improving margin
performance.
Firstly, in February, Dialog delivered on its ambition to spin out its
non-core Imaging division, Dialog Imaging Systems.
Secondly, in September, Dialog announced its decision to transfer its
test facilities to dedicated outsourced test organisations in Asia. The
transfer is on track for completion in April 2007 and is estimated to
result in annual cost savings of approximately EUR 3.0m. This move now
prompts Dialog to change its functional currency from Euro to US Dollar
effective 1 January 2007 and Dialog will report in US Dollars with a
Euro convenience translation from this date.
In Q4 06 management announced its decision to terminate Dialog's
American Depositary Receipt programmes (ADRs) and to de-register from
NASDAQ. Together, these measures will deliver a further reduction in
Dialog's annualised costs.
Product: identifying higher growth opportunities
As a result of these cost reduction measures, Dialog is now in a strong
position to take advantage of a number of higher growth, higher margin
opportunities. Whilst these opportunities sit primarily in the growing
3G and smart phone segments of the mobile phone market, Dialog, by
virtue of its core power management and audio expertise is seeing
further traction within a number of consumer handheld product segments
such as GPS personal navigators and Multimedia players.
In pursuit of these opportunities, Dialog has made a series of important
technology investments during the year, as well as forging some key
strategic partnerships.
For example, in June, Dialog announced a partnership with E-Ink for
paper thin display system drivers. This initiative has already resulted
in business with an early adopter customer and we expect revenue to ramp
up in 2008 with multiple customers. Dialog is also in the early stages
of a partnership with a Japanese company aimed at co-operation on OLED
display drivers for cell phones, positioning the Company for entry into
this emerging high growth segment in 2008.
In Dialog's Automotive and Industrial division, further progress has
been made to expand the Company's business with leading automotive
component producers, creating an intelligent highly integrated motor
controller for car seatbelt traction and electric windows. This business
builds upon the technology already implemented during the past two years
in our growing production of ICs for car windscreen wipers.
During FY 06 Dialog invested further marketing and technical resources
in engaging with major companies in the consumer electronics market.
Dialog, in tandem with its partners, is developing a number of highly
optimized and integrated power management ICs for battery operated
consumer products in order to address these new opportunities.
As a result of these efforts, a Tier 1 consumer electronics company is
currently carrying out detailed evaluation of a Dialog sample product
which is expected to be completed during Q1 07. Feedback from this
process has been such that - on completion of the evaluation -
management expects the Tier 1 Company to select this product for volume
production; a decision which would lead to a contribution to Dialog
revenues during H2 2007.
Strengthening Board and management
In addition to improving Dialog's cost base and opportunity pipeline,
significant effort was made during 2006 to align the knowledge and
expertise of senior management with Dialog's business objectives.
Dialog has made a number of important hires during the year. Firstly,
Jean-Michel Richard joined the Company as CFO in October to support and
accelerate Dialog's corporate and cost-reduction initiatives. During
2006, Dialog appointed Udo Kratz, Manoj Thanigasalam and Jürgen
Friedel as heads of its Business Units, intended to streamline Dialog's
product lines and enhance its focus on market growth opportunities.
In 2006 Dialog also welcomed four new Non Executive Directors to the
Board, Peter Weber, Chris Burke, Russ Shaw and Peter Tan. Their combined
expertise in marketing, the wireless sector and the Far East will stand
the business in good stead as it prepares for growth in 2007.
FINANCIAL PERFORMANCE
Revenues for Q4 2006 stood at EUR 10.5m (Q4 2005: EUR 39.2m) and Dialog
posted a net loss for the quarter of EUR 7.0m (Q4 2005: EUR 21.9m). This
net loss included a EUR 133,000 charge related to strategic
restructuring as well as a EUR 565,000 foreign exchange translation loss
driven by a weaker dollar. The Company also booked an additional net EUR
61,000 charge relating to the insolvency of BenQ Mobile GmbH and can
confirm that, as forecast, Dialog has no remaining exposure to BenQ
Mobile GmbH.
Revenues for the full year stood at EUR 71.3 m, a reduction from EUR
129.4 m in 2005. This reduction was due in part to the strategic
decisions taken during the year to focus on sustainable profitable
growth and partly due to unforeseen factors, such as the delay in the
market transition from 2G to 3G products, the BenQ Mobile GmbH closure
and the insolvency of an Asian customer, all of which impacted our
trading performance. Consequently, operating profit fell from EUR 2.7 m
to an operating loss of EUR 31.1 m. The net loss grew from EUR 23.3 m to
EUR 33.4 m at the year end.
Our cash and securities balance increased to EUR 39.0m (2005: EUR 31.8m)
and the Company remains debt free.
2007 STRATEGY
Going forward, Dialog will continue to fine tune its strategy to ensure
that the company is well positioned to deliver sustainable growth. For
the remainder of 2007, Dialog's focus will remain on developing and
implementing the following strategic actions:
Growing its existing business by leveraging core power management and
audio expertise;
Broadening its international focus and customer base; and
Continuing to improve business practices and operational efficiencies
In addition, Dialog will continue to extend and develop its management
team in order to support these strategic goals.
OUTLOOK
Management is confident that FY 2007 will amount to a year of growth for
the Company.
A similar set of market conditions to those experienced in Q4 2006 are
expected to prevail in H1 2007. However, with the commencement in H1
2007 of volume production in Dialog's new 3G offering, the Company
expects growth to accelerate throughout H2 2007. This increase is
expected to be driven by a broadened product range targeting high growth
opportunities in mobile phone, consumer, automotive and industrial
markets and supported by a strengthened and diversified customer base.
The Company's annual financial statements for the year ending December
31, 2006 has been prepared in accordance with International Financial
Reporting Standards (IFRS).
Information about Dialog Semiconductor
Dialog Semiconductor develops and supplies power management, audio and
display driver technology, targeting the wireless, automotive and
industrial markets. The company's expertise in mixed signal design, with
products manufactured entirely in CMOS technology, enhances the
performance and features of wireless, hand-held and portable electronic
products. Its technology is also used in intelligent control circuits in
automotive and industrial applications. Dialog Semiconductor plc is
headquartered near Stuttgart, Germany with operating facilities in the
UK, the USA, Austria, Japan and Taiwan. 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 'Risk Factors' in Dialog Semiconductor's most recent Annual
Report and under the heading 'Risk Factors' in Dialog Semiconductor's
most recent Annual Report on Form 20-F filed with the Securities and
Exchange Commission), 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.
Un-audited Consolidated Income Statement
(in thousands of EUR, except per share data)
Three monthsendedDecember 31,2006
Three monthsendedDecember 31,2005
Year endedDecember 31,2006
Year endedDecember 31,2005
Revenues
10,458
39,190
71,268
129,406
Cost of sales
(9,486)
(30,727)
(57,989)
(92,529)
Gross profit Selling and marketing expenses
972
8,463
13,279
36,877
(1,341)
(1,849)
(5,455)
(7,205)
General and administrative expenses
(829)
(2,321)
(13,386)
(6,349)
Research and development expenses
(5,592)
(5,161)
(20,885)
(20,624)
Restructuring and related impairment charges
(133)
(4,639)
-
Operating profit (loss)
(6,923)
(868)
(31,086)
2,699
Interest income
356
222
1,029
852
Interest expense
(32)
(47)
(155)
(129)
Foreign currency exchange gains and losses, net
(565)
142
(1,581)
1,018
Other income
-
-
-
28
Result before income taxes
(7,164)
(551)
(31,793)
4,468
Income tax benefit (expense)
213
(15,230)
120
(15,296)
Net loss from continuing operations
(6,951)
(15,781)
(31,673)
(10,828)
Loss from discontinued operations
-
(6,162)
(1,720)
(12,517)
Net loss
(6,951)
(21,943)
(33,393)
(23,345)
Loss per share Basic and diluted
(0.16)
(0.50)
(0.75)
(0.53)
Net loss per share from continuing operations Basic and diluted
(0.16)
(0.36)
(0.71)
(0.25)
Weighted average number of shares (in thousands) Basic and diluted
44,680
44,256
44,549
44,173
Un-audited Consolidated Balance Sheet
(in thousands of EUR)
At December 31,
At December 31,
2006
2005
ASSETS
Cash and cash equivalents
24,302
16,920
Available-for-sale financial assets
14,681
14,890
Trade accounts receivable, net
3,540
28,364
Inventories
5,659
17,155
Prepaid expenses
372
505
Other current assets
1,098
1,257
49,652
79,091
Non current assets classified as held for sale
1,057
-
Total current assets
50,709
79,091
Property, plant and equipment, net
9,420
15,710
Intangible assets
1,198
7,175
Investments
1,229
-
Deposits
175
205
Assets for current tax
336
-
Prepaid expenses
-
957
Total non-current assets
12,358
24,047
TOTAL ASSETS
63,067
103,138
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable
4,571
8,987
Provisions
1,085
194
Income taxes payable
21
24
Other current liabilities
3,776
5,103
Total current liabilities
9,453
14,308
Total non-current liabilities
-
2,932
Ordinary Shares
7,028
7,028
Additional paid-in capital
168,969
168,832
Accumulated deficit
(121,136)
(88,621)
Other reserves
(1,071)
(1,090)
Employee stock purchase plan shares
(176)
(251)
Net Shareholders' equity
53,614
85,898
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
63,067
103,138
Un-audited Consolidated Statements of Cash Flows
Year ended
Year ended
December 31,
December 31,
(in thousands of EUR)
2006
2005
Cash flows from operating activities:
Net income (loss)
(33,393)
(23,345)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Recovery of investment
-
(28)
Restructuring and related impairment charges
4,152
-
Write-down of inventories
5,993
6,576
Write-down of trade accounts receivable
2,006
-
Expense related to stock compensation
878
1,052
Depreciation of property, plant and equipment
5,377
7,619
Impairment of imaging assets
-
3,917
Amortization of intangible assets
2,946
2,807
Impairment of deferred tax asset
-
15,282
Losses on disposals of fixed assets
1,117
42
Interest income, net
(874)
(723)
Other income tax expense
(120)
14
Changes in working capital:
Trade accounts receivable
22,792
(4,307)
Inventories
5,503
6,063
Prepaid expenses
117
235
Trade accounts payable
(4,411)
(6,406)
Provisions
(133)
24
Other assets and liabilities
(663)
1,025
Cash generated from operations
11,287
9,847
Interest paid
(6)
(1)
Interest received
1,070
481
Income taxes paid
(37)
(28)
Cash provided by operating activities
12,314
10,299
Cash flows from investing activities:
Recovery of investment
-
28
Purchases of property, plant and equipment
(2,832)
(4,036)
Purchases of intangible assets
(1,011)
(5,528)
Investments and deposits made
(1,187)
(7)
Sale of available-for-sale financial assets
-
2,009
Cash used for investing activities
(5,030)
(7,534)
Cash flows from financing activities:
Sale of employee stock purchase plan shares
212
96
Cash provided by financing activities
212
96
Cash provided by operating, investing and financing activities
7,496
2,861
Effect of foreign exchange rate changes on cash and cash equivalents
(114)
82
Net increase in cash and cash equivalents
7,382
2,943
Cash and cash equivalents at beginning of period
16,920
13,977
Cash and cash equivalents at end of period
24,302
16,920
Language: English
Issuer: Dialog Semiconductor Plc.
Neue Strasse 95
73230 Kirchheim/Teck-Nabern Deutschland
Phone: +49 7021 805-0
Fax: +49 7021 805-100
E-mail: jm.richard@diasemi.com
WWW: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Indices: MIDCAP, PRIMEALL, TECHALLSHARE
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Dusseldorf, Stuttgart, Munchen, Hamburg;
Foreign Exchange(s) Nasdaq