Dialog Semiconductor Forecasts Double-Digit Growth After $600 Million Deal With Apple


Last Thursday, Dialog Semiconductor, the British chipmaker, said that it is expecting a growth in its revenue for the rest of the year to be in the mid-teens after it was able to close a deal with Apple to the tune of $600 million (£462.3 million) last October.

Apple will gain some of its patents and a team of engineers from the chip designer as part of the said transaction. It also cements a three-year contract for Dialog to continue in building the chips for iPhone and iPad products of the tech giant

Currently, Apple accounts for three-quarters of the total sales of Dialog, with last Thursday’s news reflecting a healthy growth for the rest of the business as Dialog starts preparing itself for a future with less of a concentration on the Californian giant.

The landmark deal buys time for the Anglo-German chip designer to reinvent itself as a more diversified company that will be targetting new markets such as the Internet of Things.

In an interview with Reuters, Jalal Bagherli, the chief executive of Dialog, stated: “Our custom, configurable and programmable design expertise, coupled with our ability to quickly and reliably ramp to high-volume production, enables us to serve an increasingly broad customer base.”

He added: “We are not going to fall off a cliff.”

His remarks come as the overall revenues for next year seem set to remain close to the forecast of this year amounting to $1.46 billion.

The shares in Dialog had increased by more than five percent as the markets closed in Frankfurt last Thursday, where the firm is listed.

Around half of the proceeds of the deal with Apple is expected to go towards running the business, with the rest available to be put towards the takeovers or share buybacks.

Yesterday, Dialog said that it would be spending up to €150 million (£131.8 million) on buying back almost a tenth of its shares.