Covid changes are permanent says Dialog CEO
“We’ve had two strong quarters of sequential growth one after the other, which is partially driven by the work-from-home, education-online type conditions caused by Covid,” said Dr Jalal Bagherli, CEO of Dialog speaking at the company Q3 results. “But more and more, we’re getting convinced that this is more of a permanent state of affair rather than a temporary because that strength has continued into Q4, as we’ve indicated, and potentially beyond into next year.
“So I think the work-from-home phenomena is going to be here to stay, or at least working flexibly from home or multiple locations, and all of that joins sort of additional equipment with headphone, notebooks, Chromebooks, tablets, et cetera. So that’s one which, originally, we thought it would be a one quarter effect, but it seems to be running and continue even post-Covid or post-vaccination, people would prefer to have a more flexible work environment.”
“And I think it’s proven now that companies like us, we can operate quite well with people working from home. It’s not ideal state of affair to do that every day, but certainly, we’re not necessarily expecting everybody to be in the office every day going forward. I’m looking across the industry and this seems to be the trend.”
The company saw Q3 2020 revenue of $386m, up 28 percent on the previous quarter but 5 percent below Q3 last year. This was down to the main power management IC designs licensed to Apple. Without this, the revenue increased by 24 percent year-on-year.
The quarter was the first one following the integration of Adesto for the Internet of Things (IoT) which contributed a reduced $20m to the results. “ We have made good progress with the diversification of our business into industrial IoT with the closing of the acquisition of Adesto in Q3 2020,” said Bagherli. “Adesto’s business is in two or three areas of industrial specifically and has related exposures to things like building automation. We closed the deal in February and between that time, the Covid effect started to happen. It didn’t impact Dialog as much as we were expecting because we were having much better progress with work from home and education online. However, in an industrial area where buildings are physically shut down, the level of business dropped significantly,” he said.
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