Dialog sees profits fall despite power growth

March 02, 2018 // By Nick Flaherty
Dialog Semiconductor has seen profits plummet despite a significant growth in its business and all eyes are now on the next generation of power management chis for Apple’s iPhones in 2019.

Full year revenue of $1.35bn was up 13% over 2016, although profits fell 40% to $187.0m from $309m the previous year. This follows the $300m acquisition of configurable power company Silego last year. However the volume of shipment increased significantly.

“In 2017, demand at the high end of the mobility segment improved, and across all our segments, we shipped 14% more chips than in 2016. In total, that amounts to almost 1.7 billion units of products shipped,” said Jalal Bagherli, CEO of Dialog. The year-on-year revenue growth was driven by the high volume ramp of new Power Management chips resulting in 55% growth in Mobile Systems and the consolidation of Silego.

“Good business momentum and a pipeline of key product launches give us confidence 2018 will be a year of good revenue growth,” he said. “In 2017, we expanded our design centres in Europe, Asia, and North America and there are now over 2,000 colleagues including in Silego in Dialog, 75% of whom work in engineering-related functions. Our talent pool is now based in 73 locations spread across 16 countries.”

“Focusing on mobility, we pioneered the programmable Power Management IC and our knowhow on integration and power efficiency allows us to deliver highly-integrated ICs in short-design cycles. We’ve also maintained a commanding market share in the smartphone rapid charge market of approximately 60%. Although adoption of RapidCharge technologies through second half of 2017 did not maintain the pace of previous years, we continue to make good progress introducing our first USBPD interface IC and pioneering the use of gallium nitride for mobility.”

Apple is a major customer for Dialog’s power management chips. “We are now past developing IP and evaluation of IP and we are well into completing or at least a good ways through completing design of the chip for the 2019 application,” he said.