Dialog stabilizes after crash

Revenue at the fabless chip house recovered slightly from last year's crash. Sales in Q2 amounted to $13.9 million, up 2.2 percent from first quarter's $13.6 million. However, revenue still was far below the level of the second quarter 2006, when the company achieved sales of $23.9 million. The loss was reduced to $6.8 million from $8.1 million in the first quarter.

Dialog CEO sees a continuing upward tendency. Against the background of stronger order entry, he said he expects the sales to grow in the second half of the year. "It is particularly pleasing to have improved our gross margin and reduced our losses over the previous quarter, despite static market conditions.", he said in a press release. "The new business wins secured during the past six months in our target higher growth markets have increased our order backlog. This supports our confidence that the full year 2007 revenues will be at a similar level to the prior year."

In particular, Dialog hopes that the wireless broadband deployment would stimulate the demand for the company's power management and audio solutions for mobile devices. In addition, Dialog is hoping to expand its customer base by developing intelligent sensors for automotive applications.

After having spun off its imaging business, the company last year had decided to reorganize and refocus on new customers and applications. Also, the BenQ Mobile insolvency, once a major customer for Dialog, had hurt the company badly.