Dialog Semiconductor Reports First Quarter Profits

* Gross margin of 34.1% reflects benefits of fabless business model

* EPS remains positive at EURO 0.02 (Q1 2001)

* Positive cash flow from operations

* New design centres in Austria and Japan



Apr 25, 2001, 01:00 ET from Dialog Semiconductor Plc

    KIRCHHEIM/TECK-NABERN, Germany, April 25 /PRNewswire/ --
 Dialog Semiconductor Plc (Nasdaq:   DLGS) (Easdaq: DLGS, Neuer Markt: DLG)
 reports positive earnings for the first quarter of 2001 despite reduced
 wireless sector growth and inventory corrections by customers.  The gross
 margin was stable at 34.1% reflecting effective supply chain management within
 the fabless manufacturing process.  The company achieved EBIT of
 Euro 0.6 million on revenues of Euro 30.6 million in Q1.  Cash generated from
 operations was positive at Euro 2.8 million before taking account of payments
 to secure future silicon supplies.
     Dialog's commitment to the development of products for a broader customer
 base was emphasised by the opening of offices in Austria and Japan.  The
 design centre in Austria will concentrate on high frequency wireless
 applications.  The business established in Tokyo strengthens the company's
 presence in Asia and will enable Dialog to support its local customers in the
 run up to the introduction of UMTS.
     Roland Pudelko, Dialog's CEO & President, commenting on the results:
 "Q1 results are in line with our expectations as previously announced in
 December 2000.  Because of the limited revenue visibility we are anticipating
 that the first quarter trading conditions will continue through the second
 quarter.  In the mid and long term we remain confident that our strategy of
 continued expansion of the wireless customer and product base bolstered by a
 strong demand for GPRS and 3G will be successful."
 
     Selected Financial Data
 
     In thousands of EURO, except per share and employee data
 
                                Three months   Three months            Year
                                       ended          ended           ended
                                    March 31       March 31     December 31
                                        2001           2000            2000
                                 (unaudited)    (unaudited)
 
     Revenues                         30,611         40,980         214,459
     EBITDA                            4,441          8,349          49,177
     EBIT (operating profit)             590          6,596          38,400
     Net income                          857          4,166          26,557
     Cash flow from operations *       2,773         (1,789)         18,072
     Shareholders' equity            200,453         72,456         199,194
     Total assets                    227,428        100,223         247,423
     Capital expenditure               1,263          3,877          39,024
     Research and development          6,630          4,492          22,898
     Basic earnings per share           0.02           0.10            0.62
     Number of shares in thousands
      (period end)                    44,069         42,068          44,069
     Employees (period end)              276            170             268
 
     *  Excluding advance payments to secure silicon capacity of 10,622 euros
        in the three months ended March 31, 2001 and 23,201 euros for the full
        year 2000
 
     Information about Dialog Semiconductor
     Dialog Semiconductor Plc develops and supplies mixed signal ASICs for
 wireless, communications and automotive applications.  Dialog's power
 management and Audio CODEC ASICs developed in 100% CMOS are used by major
 handset OEMs (original equipment manufacturers).
     The company focuses on high volume applications where it can exploit its
 mixed signal expertise, IP analogue design library and quick execution from
 specification to delivery.
     The company is headquartered near Stuttgart, Germany with additional
 design centres in the UK, the USA, Sweden, Austria and Japan and employs
 276 people globally.
     Dialog Semiconductor Plc is listed on the Frankfurt (Neuer Markt: DLG), on
 the NASDAQ (DLGS) and Easdaq (DLGS) exchanges.  More information is available
 at www.dialog-semiconductor.com .
 
     Disclaimer
     This discussion includes forward-looking statements about our future
 business.  These forward-looking statements include statements relating to
 future developments of the world mobile phone and semiconductor market, the
 relative market position and technology ability of Dialog Semiconductor, our
 future growth, our ability to offer commercially viable products based on our
 technology, our ability to achieve our growth targets, and the continuation of
 current developments in our financial results in the 2001 financial year.
 These forward-looking statements are subject to a number of uncertainties,
 including trends in demand and prices for semiconductors generally and for our
 products in particular, the success of our development efforts, both alone and
 with our partners, the actions of our competitors, as well as the other
 factors mentioned herein.  As a result, our actual results could differ
 materially from those contained in the forward-looking statements.
 
     Investor Relations
 
     Corporate Calendar
 
     May 17, 2001
     Annual shareholders' meeting
 
     July 25, 2001
     Release of second quarter results (before market opening)
 
     October 24, 2001
     Release of third quarter results (before market opening)
 
 

SOURCE Dialog Semiconductor Plc
    KIRCHHEIM/TECK-NABERN, Germany, April 25 /PRNewswire/ --
 Dialog Semiconductor Plc (Nasdaq:   DLGS) (Easdaq: DLGS, Neuer Markt: DLG)
 reports positive earnings for the first quarter of 2001 despite reduced
 wireless sector growth and inventory corrections by customers.  The gross
 margin was stable at 34.1% reflecting effective supply chain management within
 the fabless manufacturing process.  The company achieved EBIT of
 Euro 0.6 million on revenues of Euro 30.6 million in Q1.  Cash generated from
 operations was positive at Euro 2.8 million before taking account of payments
 to secure future silicon supplies.
     Dialog's commitment to the development of products for a broader customer
 base was emphasised by the opening of offices in Austria and Japan.  The
 design centre in Austria will concentrate on high frequency wireless
 applications.  The business established in Tokyo strengthens the company's
 presence in Asia and will enable Dialog to support its local customers in the
 run up to the introduction of UMTS.
     Roland Pudelko, Dialog's CEO & President, commenting on the results:
 "Q1 results are in line with our expectations as previously announced in
 December 2000.  Because of the limited revenue visibility we are anticipating
 that the first quarter trading conditions will continue through the second
 quarter.  In the mid and long term we remain confident that our strategy of
 continued expansion of the wireless customer and product base bolstered by a
 strong demand for GPRS and 3G will be successful."
 
     Selected Financial Data
 
     In thousands of EURO, except per share and employee data
 
                                Three months   Three months            Year
                                       ended          ended           ended
                                    March 31       March 31     December 31
                                        2001           2000            2000
                                 (unaudited)    (unaudited)
 
     Revenues                         30,611         40,980         214,459
     EBITDA                            4,441          8,349          49,177
     EBIT (operating profit)             590          6,596          38,400
     Net income                          857          4,166          26,557
     Cash flow from operations *       2,773         (1,789)         18,072
     Shareholders' equity            200,453         72,456         199,194
     Total assets                    227,428        100,223         247,423
     Capital expenditure               1,263          3,877          39,024
     Research and development          6,630          4,492          22,898
     Basic earnings per share           0.02           0.10            0.62
     Number of shares in thousands
      (period end)                    44,069         42,068          44,069
     Employees (period end)              276            170             268
 
     *  Excluding advance payments to secure silicon capacity of 10,622 euros
        in the three months ended March 31, 2001 and 23,201 euros for the full
        year 2000
 
     Information about Dialog Semiconductor
     Dialog Semiconductor Plc develops and supplies mixed signal ASICs for
 wireless, communications and automotive applications.  Dialog's power
 management and Audio CODEC ASICs developed in 100% CMOS are used by major
 handset OEMs (original equipment manufacturers).
     The company focuses on high volume applications where it can exploit its
 mixed signal expertise, IP analogue design library and quick execution from
 specification to delivery.
     The company is headquartered near Stuttgart, Germany with additional
 design centres in the UK, the USA, Sweden, Austria and Japan and employs
 276 people globally.
     Dialog Semiconductor Plc is listed on the Frankfurt (Neuer Markt: DLG), on
 the NASDAQ (DLGS) and Easdaq (DLGS) exchanges.  More information is available
 at www.dialog-semiconductor.com .
 
     Disclaimer
     This discussion includes forward-looking statements about our future
 business.  These forward-looking statements include statements relating to
 future developments of the world mobile phone and semiconductor market, the
 relative market position and technology ability of Dialog Semiconductor, our
 future growth, our ability to offer commercially viable products based on our
 technology, our ability to achieve our growth targets, and the continuation of
 current developments in our financial results in the 2001 financial year.
 These forward-looking statements are subject to a number of uncertainties,
 including trends in demand and prices for semiconductors generally and for our
 products in particular, the success of our development efforts, both alone and
 with our partners, the actions of our competitors, as well as the other
 factors mentioned herein.  As a result, our actual results could differ
 materially from those contained in the forward-looking statements.
 
     Investor Relations
 
     Corporate Calendar
 
     May 17, 2001
     Annual shareholders' meeting
 
     July 25, 2001
     Release of second quarter results (before market opening)
 
     October 24, 2001
     Release of third quarter results (before market opening)
 
 SOURCE  Dialog Semiconductor Plc