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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
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Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For September 18, 2006
COMMISSION FILE NUMBER 5-59311
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DIALOG SEMICONDUCTOR PLC
(Translation of registrant's name into English)
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Neue Strasse 95
D-73230 Kirchheim/Teck-Nabern, Germany
(Address of principal executive office)
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Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes [ ] No [X]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes [ ] No [X]
Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-__
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Dialog Semiconductor Plc.: Restructuring of Product Test Operations
KIRCHHEIM/TECK, Germany--(BUSINESS WIRE)--Sept. 18, 2006--Dialog
Semiconductor Plc. (NASDAQ: DLGS, FWB: DLG) announces the transfer of
its final stage production test operations from Kirchheim/Teck-Nabern,
Germany to manufacturing test service providers in Asia.
Dialog is investing significant resources in repositioning the
company for growth and profitability in 2007 and beyond. Whilst
maintaining the key core competences the repositioning is focused on
three initiatives - refocusing the product and sales strategies on
more profitable growth sectors, strengthening the board and management
teams and providing a cost platform for improved margin performance.
Thus, the decision to transfer Dialog Semiconductor's 'Wafer Test',
'Final Test' and 'Tape & Reel' divisions to dedicated outsourced
assembly and test organisations in Asia constitutes one step in
improving the operational efficiency of the business.
This transfer will be executed in three phases between October
2006 and March 2007 and is estimated to result in annual cost savings
of EUR 3.0m. This action will also obviate the need for the company to
invest heavily in capital expenditure for test equipment over the next
three years.
Announcing the restructuring Jalal Bagherli, Dialog CEO,
commented: "We have not taken this decision lightly, given the
contribution made to Dialog by its Nabern workforce over the years.
However, the outsourcing of our production test operations to Asia
confirms Dialog's true 'fabless' model and puts Dialog in a stronger
competitive position to exploit the emerging product opportunities in
our chosen sectors. The transfer will cut our unit testing costs and
reduce our production cycle times as well as increasing our ability to
respond to the rapid changes in our customers' demands."
A total restructuring charge is estimated at EUR 4.4m, of which
only EUR 1.2m has a cash impact resulting from the severance
compensation packages and outplacement services provided to the 33
employees who will be made redundant. The remaining EUR 3.2m has no
cash impact as it relates to the write down of manufacturing and test
assets associated with the change.
As foreseen in the Q2 2006 announcement the adverse trading
conditions are persisting through Q3 2006. Consequently, revenues for
this quarter are expected to be close to EUR 15m.
The company remains debt free and has healthy cash balances. It
continues to invest in product and market development whilst recent
design successes and product launches maintain our confidence in a
return to growth in 2007.
Information about Dialog Semiconductor
Dialog Semiconductor develops and supplies power management, audio
and display driver technology, targeting the wireless, automotive and
industrial markets. The company's expertise in mixed signal design,
with products manufactured entirely in CMOS technology, enhances the
performance and features of wireless, hand-held and portable
electronic products. Its technology is also used in intelligent
control circuits in automotive and industrial applications. Dialog
Semiconductor Plc is headquartered near Stuttgart, Germany with
operating facilities in the UK, the USA, Austria, Japan and Taiwan.
The company is listed on the Frankfurt (FWB: DLG) and NASDAQ (DLGS)
stock exchanges.
Contact
Dialog Semiconductor
Neue Strabe 95, D-73230 Kirchheim/Teck - Nabern, Germany
Telephone +49-7021-805-412
Fax +49-7021-805-200
E-mail dialog@fd.com
Internet www.dialog-semiconductor.com
James Melville-Ross
Financial Dynamics
Telephone +44 207 831 3113
Language: English
Issuer: Dialog Semiconductor Plc.
Neue Strasse 95
73230 Kirchheim/Teck-Nabern Deutschland
Phone: +49 7021 805-0
Fax: +49 7021 805-100
E-mail: martin.kloeble@diasemi.com
WWW: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Indices: MIDCAP, PRIMEALL, TECHALLSHARE
Listed: Geregelter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin-Bremen, Dusseldorf, Stuttgart,
Munchen, Hamburg; Foreign Exchange(s) Nasdaq
CONTACT: Dialog Semiconductor Plc.
Birgit Hummel, +49 7021-805 412
birgit.hummel@diasemi.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DIALOG SEMICONDUCTOR PLC
Date September 18, 2006 By /s/ Jalal Bagherli
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Dr. Jalal Bagherli
Executive Director and CEO