In a release on
- IFRS Revenue in Q4 up 31 percent over Q4 2012 at
- Q4 2013 underlying gross margin improved by 290 bps on Q3 2013 to 42.9 percent. Underlying gross margin for the full year was 40.4 percent
- Q4 2013 underlying(*) EBITDA(**) up 55 percent over Q4 2012 to
- Q4 2013 underlying EBIT up 62 percent to
- Underlying(*) Q4 2013 diluted EPS up 56 percent over Q4 2012 to
- Cash generated from operating activities in Q4 2013 was
Q4 and full year 2013 operational highlights
- Continued momentum with power management smartphone and tablet design wins, across new platforms and models at our largest customers
- Diversification efforts continued with new product launches, new application partners added and the continued ramp of new platform design wins for power management and audio at Samsung
- Continued to increase content of our products and achieved an ASP of
- SmartBond, a power Bluetooth Smart System-on-Chip (SoC) entered volume production
- SmartWave, our first multi-touch IC, gained traction with a number of ODMs
- Our collaboration with
- New product rollouts by the
Commenting on the results Dialog Chief Executive, Dr
'I am very pleased with the exceptional business performance we have achieved in Q4 and over the full year, delivering uninterrupted annual revenue growth for the 7th consecutive year, increasing profitability and outstanding cash generation.
During the year, we grew significantly faster than the industry average while investing in new product development and innovation. We have laid the foundations for a more diversified business and we are well placed to build on the market opportunity open to us in 2014 and beyond.'
Given our current visibility, we expect 2014 to be another year of good growth. As in previous years, revenue performance will be strongly weighted towards the second half of the year.
Q1 2014 revenue will reflect the traditional seasonal pattern and deliver year on year growth. We expect revenue for Q1 2014 to be in the range of
Gross margin is expected to improve year on year in 2014. In line with the seasonal lower revenue, gross margin in Q1 2014 will decline sequentially but improve on a year on year basis.
Underlying revenue in Q4 2013 was
Underlying FY 2013 gross margin was 40.4 percent, +240bps improvement on FY 2012 supported by three key elements:
- The net realisation of the benefits of manufacturing cost optimisation
- Positive product mix contribution from the
- Higher revenue and the subsequent lower allocation per unit of the fixed component of Cost of Goods Sold (COGS)
In Q4 2013 underlying OPEX as percentage of revenue was at 21.2 percent, broadly in line with Q4 2012. For the full year, underlying OPEX was 25.0 percent of revenue, 90bps above FY 2012 and including the first time consolidation of iWatt into the Group. On a stand- alone basis, underlying OPEX percent for the traditional Dialog business was broadly in line with FY 2012.
Underlying R&D investment in Q4 2013 stood at 14.1 percent of revenue, 150bps above Q4 2012. In line with the company's strategy of continuing innovation and diversification of our product portfolio, full year underlying R&D as a percentage of revenue was 17.0 percent, up 110bps on FY 2012. This was driven by the first time consolidation of iWatt into the Group and additional R&D investment in the Connectivity segment during the last quarter of the year.
Underlying SG&A in Q4 2013 stood at 7.2 percent of revenue, 60bps below Q4 2012. In 2013 we increased the efficiency of the SG&A organisation. For the full year, underlying SG&A stood at 8.0 percent, 20 bps below FY 2012 despite the first time consolidation of iWatt into the business.
In Q4 2013 we achieved a record IFRS and underlying EBIT of
In total, a net tax charge of
In Q4 2013, underlying net income and underlying EPS improved sequentially and year on year. Underlying Diluted EPS in Q4 2013 was 56 percent higher than in the same quarter of 2012, resulting in a full year 2013 fully diluted underlying EPS year on year growth of 21 percent.
At the end of Q4 2013, our total inventory level was
At the end of Q4 2013, we had cash and cash equivalents balance of
In Q4 2013 we won additional new custom PMIC designs across new platforms and models at our largest customers. During the quarter we expanded our collaboration with Samsung with a fourth platform win. Our power management IC (PMIC) with integrated audio functionality is being used in the recently launched Samsung Galaxy trend 3 smartphone.
Dialog continued to lead in delivering the highest level of integration and power efficiency in its products. This allowed us to increase the Average Sales Price (ASP) of our products, excluding the Power Conversion segment, from
SmartBond System-on-Chip (SoC), the world's smallest and lowest power Bluetooth Smart device, is now in production. SmartBond, is designed to enable consumers to use innovative new apps on their smartphones and tablets that can easily connect with watches, fitness- bands and monitors, medical, sporting remote control, computer peripherals and a vast and fast growing number of other applications. Dialog has worked with a number of leading module manufacturers including
We continue to work and make progress with a number of OEMs and ODMs with SmartWaveTM, our multi-touch IC technology and expect the first application to deploy the technology to be within the PC segment.
The high volume Chinese smartphone and tablet market is of strategic importance to Dialog. We are currently engaged with a number of leading chipset providers to this market, to address this opportunity with our power management, audio and fast charging technologies.
Throughout Q4 2013 and the first few weeks of 2014 we rolled out a number of products from the
In Q4 2013, we launched a new platform DA6401 addressing the SSL smart lighting segment. This platform supports features such as digital dimming and it is the first driver to include support for the emerging Ledotron dimming standard and enables many smart lighting applications through an embedded DSP. We continue to maintain a leadership position within solid state lighting with our portfolio of SSL products.
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In a release on