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(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 (Reuters) - 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 higher.
Dialog did not mention its relations with Apple and other customers in Tuesday's statement. (Reporting by Harro ten Wolde; Editing by Maria Sheahan)