- Dialog Semiconductor (OTCPK:DLGNF), which supplies power management chips for the iPhone/iPad and counts Apple (AAPL) as its largest customer, is down 18.4% in Frankfurt after posting Q3 results.
- Dialog's Q3 revenue rose 18% Y/Y in Q3 to $330M, after having risen 44% in Q2 thanks to strong iPhone 6-related demand. The company forecasts Q4 revenue of $430M-$460M, a range that implies Y/Y growth of -1% to +6%.
- Apple is selling off ahead of tomorrow afternoon's FQ4 report, as are various chip suppliers. The Nasdaq is down 0.2%. Shares +6% YTD and trading for 11.8x an FY16 (ends Sep. '16) EPS consensus of $9.80.
- Update: RBC's Amit Daryanani (Outperform rating, $150 target on Apple) observes Dialog's Q3 revenue missed a $354M consensus, and that its Q4 guidance is below a $475M consensus. He thinks the numbers are negative for Apple "given our discussions with [Dialog] management, which suggest ASPs are up ~4-5% (implying AAPL units being flat to down 2% in Dec-qtr)." He qualifies the remarks by noting inventory and supply chain dynamics can affect the relationship between Dialog's sales to Apple and Apple's own sales.