Dialog Semiconductor Plc, the chipmaker whose biggest client is Apple Inc., predicted full-year revenue trailing analysts’ estimates because of a continuing slowdown in smartphone demand. The stock fell.
Dialog forecast “single-digit” sales growth for this year, according to a statement from the Reading, England-based company Monday. Analysts are predicting sales of $1.5 billion, or an increase of about 10 percent, according to the average of estimates compiled by Bloomberg.
“We expect the recent softening of the smartphone market to continue through
the first half of 2016,” Dialog said.
The shares fell 3 percent to 26.10 euros at 9:01 a.m. in Frankfurt, giving the company a market value of about $2.2 billion. The stock added 6.1 percent last year.
The forecast follows a profit warning last month, when the company said fourth-quarter sales would miss its forecast. Dialog’s fourth-quarter sales were $397 million, while its full-year revenue was $1.36 billion, it said Monday.
Dialog’s outlook is the latest evidence that sales of Apple’s flagship product, the iPhone, have peaked. Apple accounts for about 78 percent of Dialog’s revenue, according to data compiled by Bloomberg. Dialog’s planned takeover of Atmel Corp. would help it cut its reliance on the mobile-phone industry, Chief Executive Officer Jalal Bagherli said in September.
Atmel said last month it received an unsolicited offer that may top Dialog’s bid, which was valued at $4.6 billion when it was announced.