Dialog Plummets the Most in 11 Years as Sales Miss Estimates

  • Quarterly sales were $330 million versus $354 million estimate
  • Dialog agreed last month to buy Atmel for $4.6 billion

Dialog Semiconductor Plc shares fell the most in almost 11 years after third-quarter revenue and a forecast for the fourth quarter missed analysts’ predictions.

Sales rose 18 percent to $330 million in the third quarter and will be $430 million to $460 million in the next three months, Dialog said in a statement Monday. That fell short of analysts’ average estimates of $354 million and $476 million, respectively, according to data compiled by Bloomberg.

Dialog plunged 20 percent to 32.41 euros at the close Monday in Frankfurt in the steepest drop since December 2004. That pared this year’s gain to 11 percent.

The miss may point to stagnating sales volumes for Apple Inc.’s iPhones, Oddo Seydler Bank AG analyst Veysel Taze said in a note to investors Monday. Apple is the company’s biggest customer, according to data compiled by Bloomberg.

The manufacturer said in September that it plans to buy San Jose, California-based Atmel Corp. for $4.6 billion, causing Dialog’s shares to drop 19 percent. The value of the takeover is bigger than Dialog’s 2.5 billion-euro ($2.8 billion) market value. It’s been a record year for semiconductor transactions as chipmakers combine to counter slowing growth and increasing costs.

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