Dialog Semiconductor Forecast Low Quarterly Sales


Today, Dialog Semiconductor, the Apple chipmaker, said that it is expecting its quarterly sales to be at the bottom end of its target range after the iPhone manufacturer announced a surprise profit warning.

Dialog reported preliminary revenue of approximately $431 million (£336 million) for the fourth quarter, which is at the lower end of its $430 million to $470 million forecast. However, the company was able to rebound on the broader view that Dialog had weathered the recent sales slowdown of Apple quite well.

In a note, some analysts from Barclays stated: “Dialog was one of the few Apple suppliers not to warn, stating at the time their comfort with the guidance provided.”

Last October, the chip manufacturer secured a deal that is worth $600 million with Apple, which it now relies on for 75 percent of its sales. The company is based in the United Kingdom.

As part of the said deal, Apple gained some patents and a team of engineers from the chipmaker, as Dialog cemented a three-year deal to build the chips for the iPhone and iPad products of the tech giant.

However, the iPhone manufacturer issued a rare profit warning at the start of the month. It blamed the weaker sales in China for the slowdown.

Some of its suppliers have been feeling the squeeze after Apple reduced its production orders for its latest models after recording lower-than-expected demands.

However, despite the revised estimate, the revenue forecast of Dialog continues to be within its target range. The company said that it is expecting full-year revenue amounting to $1.4 billion, a year-on-year increase of approximately seven percent.

The update did not seem to concern the investors, with shares in Dialog increasing by nearly four percent in morning trading.

The firm said that it is scheduled to publish its audited full-year results on the 6th of March.