(Corrects to read gross margin, removes reference to operating
margin, paragraph 5)
* Sees Q2 revenues of $235-265 mln
* Q1 revenues $271 mln vs Rtrs poll avg $273 mln
* Shares indicated to open 1.4 pct lower
FRANKFURT, May 9 Dialog Semiconductor
on Tuesday predicted its revenues would drop in the second
quarter compared with the first but then return to growth later
in the year, when new smartphones hit the market.
The Anglo-German chipmaker, whose chips go into Apple Inc's
and Samsung Electronics' smartphones,
reported underlying operating profit growth of 44 percent to
$43.2 million for the quarter, which ended March 31.
It was helped especially by its products for rapid power
charging and its bluetooth low energy products.
That was above the average of $40.3 million in a Reuters
poll with individual estimates of seven analysts ranging from
$34.7 million to $44.8 million. Revenues of $271 million were
slightly below the average expectation of $273 million.
The company said it expects second quarter revenues of
between $235 million and $265 million, while its gross margin
for both the second quarter and the full year should be broadly
in line with the 46.1 percent it achieved in the first quarter.
For the whole of 2017 Dialog expects good revenue growth, it
said. "As in previous years, revenue performance will be
strongly weighted towards the second half of the year," Dialog
said in a statement. In second half of the year Apple's new
iPhones will hit the market.
Dialog's heavy dependence on smartphones has put the
company's shares on a roller coaster ride in the past weeks.
Hopes for strong chip deliveries to Apple and Samsung lifted the
stock to a 17-month high.
But an analyst report suggesting that Apple was looking into
ways to design its own chips caused the stock to drop by more
than a third during one trading session.
Since then, Dialog shares have recovered but they are still
almost 20 percent below their 17-month high. The shares were
indicated to open 1.4 percent lower on Tuesday, according to
pre-market data of German brokerage Lang & Schwarz, while the
German blue chip index was set to open 0.1 percent
Dialog did not mention its relations with Apple and other
customers in Tuesday's statement.
(Reporting by Harro ten Wolde; Editing by Maria Sheahan)