Dialog Semiconductor (DLGNF) , a Frankfurt-listed chipmaker and a supplier to Apple (AAPL) and Bosch (BSWQY) , lifted its full-year outlook after reporting robust demand for products to support new games and smartphones.

The Reading, England-based group, which reports in U.S. dollars, raised its full-year revenue guidance to $1.19 billion, down 12% year on year but above from the 15% decline projected in July. The company also said it expects gross margins to remain roughly in line with 46% achieved last year.

Dialog shares were little changed at €35.20, but have fallen 3% down from a year ago.

The company, which also makes chips for use in home appliances, lighting, and Internet of Things products, attributed the gain in momentum to its winning orders for smartphone-related products as well as chips enabling connectivity for items such as the Pokémon Go Plus and Tile Slim.

Bluetooth was among the technology that Dialog highlighted in contributing in the quarter. For example, Pokémon Go Plus, an add-on device to Niantic, Pokémon Co. and Nintendo's hit smartphone game, had adopted Bluetooth to enable players to enjoy the game on the go and without staring at the screen.

For the third quarter, Dialog reported underlying net profit of $55.5 billion on revenue of $345.8 million, up 4% and 5% year on year, respectively. Diluted earnings per share came to 71 cents, up from 68 cents.

Of note, revenue grew 54% in the power conversion segment, which provides for Internet of Things products, power adapters, smart meters, among others. Revenue also advanced 8% in the connectivity segment, which supplies products enabling wireless connectivity, such as Bluetooth, as well as improved battery life.

"We are entering new markets with differentiated and innovative products and maintaining our technical leadership through focused R&D investment," CEO Jalal Bagherli said, adding he had "great confidence" for growth in 2017.

Apple, Panasonic (PCRFY) , Bosch, Gigaset, and Xiaomi accounted for 85% of Dialog's revenue, according to its 2015 annual report. In the report, the company added that it recognizes the risk of over-reliance on a small group of customers.

The company also lists Huawei and Samsung Electronics (SSNLF)  among its clients.

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