Update on Segment Information

Rhea-AI Summary

Dialog Semiconductor Plc has announced organizational changes to align with its growth strategy, particularly in the industrial market. It restructured its segments by integrating Creative Chips GmbH and Adesto Technologies into a new Industrial IoT segment. The group’s underlying revenue remained stable for 2019 and Q1-Q3 2020, unaffected by these changes. Q4 and FY 2020 results will be reported under this new structure. The company generated approximately <$1.4 billion> in revenue in 2020.

Positive

• Reorganization aligns with growth strategy in the industrial market.
• Introduction of the Industrial IoT segment may enhance operational efficiency.

Negative

• Segment restructuring may confuse investors regarding performance metrics.

LONDON, UK / ACCESSWIRE / March 3, 2021 / Dialog Semiconductor Plc (XETRA:DLG), a provider of highly integrated power and battery management, Configurable Mixed-signal IC, AC/DC, solid state lighting and Bluetooth(R) low energy wireless technology, and industrial edge computing solutions, today updates on changes to its organisation and segment information.

Organisational changes
The Group's organisation has been updated to reflect our growth strategy and the expansion of our business into the industrial end market. We acquired Creative Chips GmbH during Q4 2019 and designated it as our Industrial Mixed Signal business unit within our Custom Mixed Signal reporting segment. We acquired Adesto Technologies Corporation during Q3 2020 and initially reported its results as a separate operating segment. During Q4 2020, we brought these two businesses together to form a single reporting segment that we have named Industrial IoT. The following table summarises the segment changes:

Previous Reporting Segments	Changes (+/-)	New Reporting Segments
Custom Mixed Signal	- Industrial Mixed Signal (Creative Chips)	Custom Mixed Signal (CMS)
Advanced Mixed Signal		Advanced Mixed Signal (AMS)
Connectivity and Audio		Connectivity and Audio (C&A)
Adesto	+ Industrial Mixed Signal (Creative Chips)	Industrial IoT (IIoT)

Restated segment information
Management uses underlying measures as the principal basis for allocating resources to and assessing the financial performance of the Group's businesses. Underlying revenue is therefore the measure of segment revenue and underlying operating profit or loss the measure of segment profit or loss that is presented in the Group's segment disclosures.

Segment information for 2019 and for Q1/Q2/Q3 2020 restated to reflect these organisational changes is shown in Table 1 and Table 2 on page 2 of this Press Release and is available on our website in pdf and excel format:

https://www.dialog-semiconductor.com/organisational-update

The Group's results for 2019 and for Q1/Q2/Q3 2020 remain unchanged.

Q4 and FY 2020 results, including segment information are presented in accordance with the new reporting structure.

Table 1: Underlying revenue by segment (unaudited)

											Underlying revenue(1)				Underlying revenue(1)
				Three months			Three months			Three months	Three months				Year
				ended			ended			ended	ended				ended
				31 December 2019			27 March 2020			26 June 2020	25 September 2020				31 December 2019
				US$000			US$000			US$000	US$000				US$000
Custom Mixed Signal				253,407			147,826			181,528	216,536				962,476
Advanced Mixed Signal				68,444			51,528			63,112	78,184				253,415
Connectivity & Audio				50,154			34,716			43,899	56,023				183,781
Industrial IoT				2,312			5,485			4,833	26,750				2,312
Total segments				374,317			239,555			293,372	377,493				1,401,984
Corporate and other unallocated items				6,265			8,927			8,927	8,922				18,505
Total Group				380,582			248,482			302,299	386,415				1,420,489
1 Revenue is from sales to external customers (there were no inter-segment sales)

Table 2: Underlying operating profit by segment

(unaudited)

					Underlying operating profit/(loss)		Underlying operating profit/(loss)
		Three months	Three months	Three months	Three months		Year
		ended	ended	ended	ended		ended
		31 December 2019	27 March 2020	26 June 2020	25 September 2020		31 December 2019
		US$000	US$000	US$000	US$000		US$000
Custom Mixed Signal		82,401	29,744	48,216	67,945		282,617
Advanced Mixed Signal		2,747	55	5,461	11,399		15,236
Connectivity & Audio		4,349	(3,238)	1,798	6,802		21,607
Industrial IoT		(676)	341	64	(1,159)		(676)
Total segments		88,821	26,902	55,539	84,987		318,784
Corporate and other unallocated items		2,447	6,107	6,851	6,499		5,565
Total Group		91,268	33,009	62,390	91,486		324,349

Reconciliation of underlying measures to equivalent IFRS measures (unaudited)

Underlying performance measures exclude specific items of income or expense that are recognised in profit or loss reported in accordance with IFRS that we consider hinder comparison of the financial performance of our businesses from one period to another, with each other or with other similar businesses.

Except when presented as measures of segment revenue or segment profit or loss, underlying measures of performance are non-IFRS measures. Our use of non-IFRS measures is explained on pages 183 to 189 of our 2019 Annual Report and Accounts. Reconciliations of the Group's revenue and operating profit or loss reported in accordance with IFRS to the Group's revenue and operating profit or loss
on an underlying basis for each of the periods presented in the tables above were presented in our results announcements for the respective periods.

***

For further information please contact: Dialog Semiconductor
Jose Cano
Head of Investor Relations T: +44 (0)1793 756 961
jose.cano@diasemi.com

FTI Consulting London
Matt Dixon
T: +44 (0)2037 271 137
matt.dixon@fticonsulting.com

FTI Consulting Frankfurt
Katharina Tengler
T: +49 (0)69 92037 118
katharina.tengler@fticonsulting.com

About Dialog Semiconductor
Dialog Semiconductor is a leading provider of integrated circuits (ICs) that power mobile devices and the Internet of Things. Dialog solutions are integral to some of today's leading mobile devices and the enabling element for increasing performance and productivity on the go.
From making smartphones more power efficient and shortening charging times, enabling home appliances to be controlled from anywhere, to connecting the next generation of wearable devices, Dialog's decades of experience and world-class innovation help manufacturers get to what's next.

Dialog operates a fabless business model and is a socially responsible employer pursuing many programs to benefit the employees, community, other stakeholders and the environment in which we operate. Dialog Semiconductor Plc is headquartered in London with a global sales, R&D and marketing organization. In 2020, it had approximately $1.4 billion in revenue. It currently has approximately 2,300 employees worldwide. The company is listed on the Frankfurt (FWB: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006).
For more information, visit www.dialog-semiconductor.com.

Forward Looking Statements
This press release contains "forward-looking statements" that reflect management's current views with respect to future events. The words "anticipate," "believe," "estimate", "expect," "intend," "may," "plan," "project" and "should" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in the semiconductor and telecommunications markets; changes in currency exchange rates and interest rates, the timing of customer orders and manufacturing lead times, insufficient, excess or obsolete inventory, the impact of competing products and their pricing, political risks in the countries in which we operate or sale and supply constraints. If any of these or other risks and uncertainties occur (some of which are described under the heading "Managing risk and uncertainty" in Dialog Semiconductor's most recent Annual Report) or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement which speaks only as of the date on which it is made, however, any subsequent statement will supersede any previous statement.

Contact:
Jose Cano
Director, Investor Relations
jose.cano@diasemi.com
+44(0)1793756961

SOURCE: Dialog Semiconductor Plc.

View source version on accesswire.com:
https://www.accesswire.com/633157/Update-on-Segment-Information

FAQ

What organizational changes did Dialog Semiconductor Plc announce regarding DLGNF?

Dialog Semiconductor Plc updated its organizational structure to better reflect its growth strategy and established a new Industrial IoT segment by combining Creative Chips GmbH and Adesto Technologies.

How did the segment changes affect Dialog Semiconductor's revenue?

The organizational changes did not affect the underlying revenue reported for 2019 and Q1-Q3 2020, which remain unchanged.

What is the new reporting structure for Dialog Semiconductor Plc?

The new reporting structure includes segments such as Custom Mixed Signal, Advanced Mixed Signal, Connectivity and Audio, and the newly formed Industrial IoT.

What was Dialog Semiconductor's revenue in 2020?

Dialog Semiconductor generated approximately $1.4 billion in revenue in 2020.