DIALOG SEMICONDUCTOR Non-IFRS measures Underlying measures of performance and free cash flow quoted in this press release are non-IFRS measures. Our use of underlying measures and reconciliations of the underlying measures to the nearest equivalent IFRS measures are presented in Section 3 of the full announcement of our results for Q2 2021. For ease of reference, we present below reconciliations for the non-IFRS measures quoted in this press release:
Q2 2021
Share-based Corporate Cost-
compensation Accounting
US$000 IFRS and related for business Integration transaction reduction Underlying
basis expenses combinations costs costs initiatives basis
Revenue 317,761 - - - 317,761
- -
Gross profit 161,919 846 - - 162,799
34 -
SG&A expenses (55,249) 8,543 7,076 4,273 15 (34,564)
778
R&D expenses (76,979) 6,608 - - (66,729)
3,642 -
Other 1,412 - - - 1,412
operating - -
income
Operating 31,103 15,997 10,752 4,273 15 62,918
profit 778
Net finance (2,105) - - - (2,105)
income - -
Profit before 28,998 15,997 10,752 4,273 15 60,813
income taxes 778
Income tax (7,213) (2,578) (1,959) (561) (3) (12,460)
expense (146)
Net income 21,785 13,419 8,793 3,712 12 48,353
632
Q2 2020
IFRS Share-based Accounting Integration Strategic Underlying
compensation and for business
US$000 basis related expenses combinations costs investments basis
Revenue 302,299 - - 302,299
- -
Gross profit 151,797 - - 152,850
791 262
SG&A expenses (42,983) 7,243 501 - (28,986)
6,253
R&D expenses (77,317) 5,969 - - (68,840)
2,508
Other 8,957 - - - 7,366
operating (1,591)
income
Operating 40,454 14,003 501 - 62,390
profit 7,432
Net finance (64) - (380) (390)
income - 54
Profit before 40,390 14,003 501 (380) 62,000
income taxes 7,486
Income tax (7,943) (2,967) (95) 72 (12,198)
expense (1,265)
Net income 32,447 11,036 406 (308) 49,802
6,221
Accounting for business combinations Q2 2021 Q2 2020
US$000
Acquisition-related costs - 1,278
Amortisation of acquired intangible assets 10,679 7,318
Consumption of the fair value uplift of acquired inventory - 262
Consideration accounted for as compensation expense 73 173
Forfeiture of deferred consideration - (8)
Remeasurement of contingent consideration - (1,591)
Increase in operating profit 10,752 7,432
Unwinding of discount on contingent consideration - 54
Increase in profit before income taxes 10,752 7,486
Income tax credit (1,959) (1,265)
Increase in net income 8,793 6,221
EBITDA Q2 2021 Q2 2020
US$000
Net income 21,785 32,447
Net finance income 2,105 64
Income tax expense 7,213 7,943
Depreciation expense 8,974 8,165
Amortisation expense 16,171 13,178
EBITDA 56,248 61,797
Share-based compensation and related expenses 15,997 14,003
Acquisition-related costs - 1,278
Consumption of the fair value uplift of acquired inventory - 262
Consideration accounted for as compensation expense 73 173
Forfeiture of deferred consideration - (8)
Remeasurement of contingent consideration - (1,591)
Integration costs 778 501
Corporate transaction costs 4,273 -
Cost-reduction initiatives 15 -
Underlying EBITDA 77,384 76,415
Free cash flow Q2 2021 Q2 2020
US$000
Cash flow from operating activities 7,410 33,092
Purchase of property, plant and equipment (3,502) (3,334)
Purchase of intangible assets (1,601) (1,538)
Payments for capitalised development costs (8,522) (1,967)
Capital element of lease payments (3,222) (2,239)
Free cash flow (9,437) 24,014 ***
The full release including the Company's unaudited consolidated financial statements for the quarter ended 2 July 2021 is available under the investor relations section of the Company's website at:
https://www.dialog-semiconductor.com/investor-relations/results-center
Dialog, the Dialog logo, SmartBond(TM), SmartBond TINY(TM), RapidCharge(TM), SmartBeat(TM), GreenPak(TM), VirtualZero(TM), are registered trademarks of Dialog Semiconductor Plc or its subsidiaries. All other product or service names are the property of their respective owners. (c)Copyright 2021 Dialog Semiconductor Plc. All rights reserved.
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 employees, the
community, other stakeholders and the environment we operate in. Dialog's power saving technologies including DC- DC configurable system power management deliver high efficiency and enhance the consumer's user experience by extending battery lifetime and enabling faster charging of their portable devices. Its technology portfolio also includes audio, Bluetooth(R) Low Energy, Rapid Charge(TM) AC/DC power conversion and multi-touch. Dialog Semiconductor Plc is headquartered in London with a global sales, R&D and marketing organisation. It currently has approximately 2,300 employees worldwide. In 2020, it had approximately US$ 1.38 billion in revenue. The company is listed on the Frankfurt (XETRA: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006).
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