Second Quarter Financial Results
Second quarter revenue of
The following non-GAAP results exclude the impact of stock compensation expense. Non-GAAP gross margin increased sequentially by 150 basis points to 62.5 percent. The company expects the improved 62.5 percent margin will likely be sustainable through the end of 2009. Non-GAAP operating expenses declined sequentially as a percent of revenue, totaling
During the second quarter, accounts receivable returned to normal levels as demand improved. Inventory rose, but remained lower than the same period last year at
Business Summary
The company's outstanding performance during the quarter was due primarily to a number of new product cycles and relative geographic strength from
Access product revenue in the second quarter nearly met the record revenue level achieved during the same period last year, due to strength in both modem and voice products. RF product revenue increased by more than 20 percent year over year, driven by growth in all three of the product lines: audio, video and short range wireless. The strength of ramps into the digital TV market with the company's video demodulator contributed to the growth. New programs and market share gains continued in handsets, where FM penetration has increased and large customers have expanded their market share. The company's consumer audio business grew as well, with the AM/FM tuner adoption accelerating in
The Broad-based business was about flat sequentially with growth in MCU and timing offsetting a sequential decline in the power product line. Design wins stepped up during the quarter across the portfolio. In aggregate, the Broad-based business is expected to reach record revenue levels in the third quarter.
"Our business is benefiting from wins in new customer programs, market share gains and seasonality. The increased revenue, strong margins and good expense management are generating tremendous earnings power," said
Webcast and Conference Call
A conference call discussing the results will follow this press release today at
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Forward-Looking Statements
This press release contains forward-looking statements based on Silicon Laboratories' current expectations. The words "guide," "believe," "estimate," "expect," "forecast," "intend," "anticipate," "plan," "project," "will" and similar phrases as they relate to
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Silicon Laboratories Inc. Condensed Consolidated Statements of Income (In thousands, except per share data) (Unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
July 4, | July 5, | July 4, | July 5, | ||||||||
Revenues | $ | 104,216 | $ | 104,620 | $ | 187,917 | $ | 202,799 | |||
Cost of revenues | 39,435 | 38,587 | 72,458 | 76,419 | |||||||
Gross margin | 64,781 | 66,033 | 115,459 | 126,380 | |||||||
Operating expenses: | |||||||||||
Research and development | 25,868 | 23,378 | 51,937 | 48,051 | |||||||
Selling, general and administrative | 26,187 | 24,486 | 49,629 | 49,095 | |||||||
Operating expenses | 52,055 | 47,864 | 101,566 | 97,146 | |||||||
Operating income | 12,726 | 18,169 | 13,893 | 29,234 | |||||||
Other income (expense): | |||||||||||
Interest income | 655 | 2,406 | 1,537 | 7,204 | |||||||
Interest expense | (51) | (109) | (103) | (254) | |||||||
Other income (expense), net | 342 | (355) | 290 | (497) | |||||||
Income before income taxes | 13,672 | 20,111 | 15,617 | 35,687 | |||||||
Provision for income taxes | 3,942 | 5,468 | 5,216 | 10,230 | |||||||
Net income | $ | 9,730 | $ | 14,643 | $ | 10,401 | $ | 25,457 | |||
Earnings per share: | |||||||||||
Basic | $ | 0.22 | $ | 0.30 | $ | 0.23 | $ | 0.51 | |||
Diluted | $ | 0.21 | $ | 0.29 | $ | 0.23 | $ | 0.50 | |||
Weighted-average common shares outstanding: | |||||||||||
Basic | 44,640 | 48,510 | 44,336 | 49,858 | |||||||
Diluted | 45,975 | 49,705 | 45,229 | 50,901 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) | |||||||||||||||||
Non-GAAP Income | Three Months Ended | ||||||||||||||||
GAAP | GAAP | Stock | Non-GAAP | Non-GAAP | |||||||||||||
Revenues | $ | 104,216 | |||||||||||||||
Gross margin | 64,781 | 62.2% | $ | 372 | $ | 65,153 | 62.5% | ||||||||||
Operating expenses | 52,055 | 49.9% | 10,479 | 41,576 | 39.9% | ||||||||||||
Operating income | 12,726 | 12.3% | 10,851 | 23,577 | 22.6% | ||||||||||||
Non-GAAP Diluted | Three Months Ended July 4, 2009 | ||||||||||||||||
GAAP | Stock | Non-GAAP | |||||||||||||||
Net Income | $ | 9,730 | $ | 9,394 | $ | 19,124 | |||||||||||
Diluted shares outstanding | 45,975 | -- | 45,975 | ||||||||||||||
Diluted earnings per share | $ | 0.21 | $ | 0.42 | |||||||||||||
Non-GAAP Income | Three Months Ended April 4, 2009 | ||||||||||||||||
GAAP | GAAP | Stock | Termination | Non-GAAP | Non-GAAP | ||||||||||||
Revenues | $ | 83,701 | |||||||||||||||
Gross margin | 50,678 | 60.5% | $ | 395 | $ | 10 | $ | 51,083 | 61.0% | ||||||||
Non-GAAP Diluted | Three Months Ended April 4, 2009 | ||||||||||||||||
GAAP | Stock | Termination | Non-GAAP | ||||||||||||||
Net Income | $ | 671 | $ | 8,641 | $ | 732 | $ | 10,044 | |||||||||
Diluted shares outstanding | 45,083 | -- | -- | 45,083 | |||||||||||||
Diluted earnings per share | $ | 0.01 | $ | 0.22 |
Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) | |||||
July 4, | January 3, | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 199,519 | $ | 172,272 | |
Short-term investments | 113,205 | 101,267 | |||
Accounts receivable, net of allowance for doubtful accounts of $680 at July 4, 2009 and $1,011 at January 3, 2009 | 62,890 | 36,144 | |||
Inventories | 26,672 | 28,293 | |||
Deferred income taxes | 6,587 | 6,439 | |||
Prepaid expenses and other current assets | 20,091 | 18,297 | |||
Total current assets | 428,964 | 362,712 | |||
Long-term investments | 23,138 | 51,821 | |||
Property, equipment and software, net | 28,739 | 30,496 | |||
Goodwill | 104,612 | 105,515 | |||
Other intangible assets, net | 45,778 | 49,728 | |||
Other assets, net | 19,831 | 23,973 | |||
Total assets | $ | 651,062 | $ | 624,245 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 25,416 | $ | 22,274 | |
Accrued expenses | 21,973 | 29,119 | |||
Deferred income on shipments to distributors | 26,839 | 21,599 | |||
Income taxes | 85 | 4 | |||
Total current liabilities | 74,313 | 72,996 | |||
Long-term obligations and other liabilities | 49,608 | 48,789 | |||
Total liabilities | 123,921 | 121,785 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Preferred stock--$0.0001 par value; 10,000 shares authorized; no shares issued and outstanding | -- | -- | |||
Common stock--$0.0001 par value; 250,000 shares authorized; 44,726 and 44,613 shares issued and outstanding at July 4, 2009 and January 3, 2009, respectively | 4 | 4 | |||
Additional paid-in capital | 89,731 | 75,711 | |||
Retained earnings | 443,194 | 432,793 | |||
Accumulated other comprehensive loss | (5,788) | (6,048) | |||
Total stockholders' equity | 527,141 | 502,460 | |||
Total liabilities and stockholders' equity | $ | 651,062 | $ | 624,245 |
Source:
Silicon Laboratories Inc.
Shannon Pleasant, 512-464 9254
shannon.pleasant@silabs.com