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## Financial review 

“Our rigorous focus on working capital together with sound financial practices rooted in operational excellence are helping Dialog build a scalable platform for sustainable profitable growth.” 

Jean‑Michel Richard CFO, Vice President Finance 

The following tables detail the historical consolidated statements of the operations of Dialog for the years ended 31 December 2011 and 2012: 

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1) 2011 numbers adjusted for purchase price allocation, please refer to note 4 to the consolidated financial statements 

In line with previous years, the key performance indicators of the business continue to be revenue growth, profitability and liquidity. The performance against these and year-on-year comparison is detailed in the following section. 

## Results of operations 

## Segment reporting 

Revenue in the Mobile Systems  segment for the year ended 31 December 2012 was US$638.8 million (2011: US$370.9 million), representing 82.6% of our total revenue (2011: 70.3%). The 72.2% increase in this sector is primarily driven by the continuous success of our growing range of highly integrated power management solutions for portable devices, including smartphones, tablets and portable media players. 

Operating profit in the Mobile Systems segment (see note 24 to the consolidated financial statements) grew to US$112.3 million from US$59.8 million achieved in 2011, an increase of 87.7%. This increased profitability was primarily driven by higher revenues and 

by leveraging operating expenses whilst continuing to improve product margins. 

Revenues from our Automotive/Industrial Applications  segment was US$38.7 million (2011: US$45.9 million), representing 5.0% of our total revenues (2011: 8.7%). 

This decrease in revenues is mainly the result of lower sales volumes in the area of professional lighting applications, caused by the unfavourable economic climate in Europe and a decreased level of investment. Operating profit in the segment was US$8.1 million (2011: US$9.8 million). Despite lower revenues, operating profit as a percentage of revenues remained relatively constant (2012: 20.9% compared to 2011: 21.5%), demonstrating our abilities to control cost. 

