Dialog Semi reviews guidance as Chinese holiday boosts third quarter sales

Reuters News
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Posted: Oct 05, 2016 5:14 PM

FRANKFURT (Reuters) - Dialog Semiconductor <DLGS.DE>, the maker of chips used in Apple and Samsung Electronics' smartphones, said it was reviewing its full-year guidance after a Chinese holiday helped bolster third-quarter sales.

Sales for the three months through September came to around $345 million, Dialog said late on Wednesday, up 40 percent from the second quarter and almost 5 percent above the year-earlier level, as orders for mobile chips were brought forward due to China's National Day holiday.

The news comes after a disappointing second quarter in which sales and operating profit dropped, prompting Dialog to cut its full-year sales guidance to forecast a drop by around 15 percent on softness in the smartphone market.

Dialog, which is due to publish full third-quarter financial results on Nov. 3, makes chips that manage power consumption of consumer electronic devices such as smartphones and tablet computers. Apple Inc <AAPL.O> and Samsung Electronics <005930.KS> are among its main customers.

(Reporting by Maria Sheahan; Editing by Chris Reese)