Q3 2007 Dialog Semiconductor Plc Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good day and welcome to the Dialog Semiconductor Q3 2007 conference call. Today's conference is being recorded. At this time I would like to turn the conference over to Miss. Schaetzle, please go ahead madam.

CLAUDINE SCHAETZLE, MODERATOR, FINANCIAL DYNAMICS: Hello everybody, welcome to the analyst call on the Q3 figures from Dialog Semiconductor, my name is Claudine Schaetzle. Jean-Michel Richard and Dr. Jalal Bagherli are with me and they will now start the presentation.

JALAL BAGHERLI, CEO, DIALOG SEMICONDUCTOR PLC: Thank you Claudine, this is Jalal Bagherli, CEO of Dialog and good morning everyone and welcome to our Q3 results. I'd like to start by reviewing briefly our results for the quarter in terms of briefly on the financial side and operational, and then handover to our CFO, Jean-Michel Richard halfway through the presentation.

So, to begin with we'd like to say that we're very pleased with this quarter's achievement for the company. As you see from our press release, we've made substantial improvements across pretty much all key financial parameters of the company. A lot of this is due to hard work, but also all the strategic decisions that are taken for the past 12 to 18 months to put the company in the right position to perform and be competitive. And we're very confident that our strategy is paying off in terms of developing our company to be a broader based, higher quality and better margin products that will support our plan going forward.

Our revenues for the quarter came in at $24.7 million, which is a major improvement on last year, about 26% up on last year, but also almost 78% up on the quarter a quarter ago. We continued to improve the gross margin of the company. For the last three quarters have been delivering improved gross margin and this quarter we hit at 36.4%, a gaining of pretty major improvement on Q2, which was only 21.4%. And again we

continue to work on this.

Our losses came in at $5.5 million, as net loss, which is again a major reduction relative to last year this quarter, but also a quarter ago we had $6.8 million losses. This $5.5 million loss also includes the write-off our imaging investment, which is about $2.7 million. So, excluding that, we have narrowed the losses even further in Q3 of this year.

Moving onto just a number of highlights from our operation this quarter, we are very pleased, of course, with our wireless activity which is now returned to growth. We've been speaking about our wireless products going to production and anticipating that for the -- since Q4 of last year. For the six, seven months we've been positioning and predicting the new production to ramp. And we're very pleased that we've managed this ramp of volume production for new products to consumer and also the third generation, 3G cell phone products. And both of these product ranges go to Tier 1 customers.

The -- we maintain our focus on broadening the product range and building higher margin products and a more diversified customer base every quarter. And as an indication of that our confidence in our designing pipeline is growing in terms of the number of customers and segments that we cover with these new products.

The -- another area I'd like to point out is the work we put in to move all our manufacturing to offshore location, to become …