Silicon Laboratories Inc.
Apr 29, 2015

Silicon Labs Announces Record Revenue

 

Growth Products Deliver across the Board

AUSTIN, Texas--(BUSINESS WIRE)-- Silicon Labs (NASDAQ: SLAB), a leading provider of microcontroller, wireless connectivity, analog and sensor solutions for the Internet of Things (IoT), today reported financial results for its first quarter ended April 4, 2015. Revenue in the first quarter exceeded the top end of guidance and established a new record at $163.7 million, up from $162.0 million in the fourth quarter.

Financial Highlights

On a GAAP basis:

On a non-GAAP basis (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation tables below):

Business Highlights

Product Highlights

Business Outlook

The company expects revenue in the second quarter to be in the range of $164 million to $169 million and anticipates another record in its IoT products. Second quarter diluted earnings per share are expected to be between $0.11 and $0.17 on a GAAP basis and between $0.50 and $0.56 on a non-GAAP basis.

"We are very pleased by our strong start in what is typically a seasonally down quarter and by the progress we have made over the past year, with double-digit growth in our investment businesses," said Tyson Tuttle, CEO of Silicon Labs. "We had a great quarter filled with a lot of good news and achievements, including our entry into the Bluetooth Smart market and the completion of our acquisition of Bluegiga."

Webcast and Conference Call

A conference call discussing the quarterly results will follow this press release at 7:30 a.m. Central time. An audio webcast will be available on Silicon Labs' website under Investor Relations (www.silabs.com). A replay will be available after the call at the same website listed above or by calling 1 (855) 859-2056 or (404) 537-3406 (international) and entering conference ID 39717392. The replay will be available through May 15, 2015.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and system solutions for the Internet of Things, Infrastructure, industrial automation, consumer and automotive markets. We solve the electronics industry's toughest problems, providing customers with significant advantages in performance, energy savings, connectivity and design simplicity. Backed by our world-class engineering teams with strong software and mixed-signal design expertise, Silicon Labs empowers developers with the tools and technologies they need to advance quickly and easily from initial idea to final product. www.silabs.com

Forward-Looking Statements

This press release contains forward-looking statements based on Silicon Labs' current expectations. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "project," "will" and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; dependence on a limited number of products and customers; intellectual property litigation risks; risks associated with acquisitions and divestitures; risks related to the successful completion of the development and implementation of Bluegiga's technology; risks associated with the development of modules and the Company's limited operating history with modules; risks that the acquisition may not yield the expected benefits due to the failure to properly integrate the acquired business and employees; risks that our competitors that supply products incorporated in Bluegiga's modules may disrupt such supply; risks that the acquired business' products and processes under development may fail to achieve market acceptance; risks of disputes regarding the acquired business and intellectual property; product liability risks; difficulties managing our distributors, manufacturers and subcontractors; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with our accounts receivable; dependence on key personnel; stock price volatility; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs' business and results of operations to risks of natural disasters, epidemics, war and political unrest; debt-related risks; capital-raising risks; the competitive and cyclical nature of the semiconductor industry; average selling prices of products may decrease significantly and rapidly; information technology risks; conflict mineral risks and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.

Note to editors: Silicon Laboratories, Silicon Labs, the "S" symbol, the Silicon Laboratories logo, the Silicon Labs logo and Simplicity Studio are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

       

Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

       
      Three Months Ended
      April 4, 2015     March 29,

2014

Revenues     $ 163,705       $ 145,691  
Cost of revenues       67,336         58,586  
Gross margin       96,369         87,105  
Operating expenses:            
Research and development       46,857         42,485  
Selling, general and administrative       42,300         34,611  
Operating expenses       89,157         77,096  
Operating income       7,212         10,009  
Other income (expense):            
Interest income       192         302  
Interest expense       (745 )       (798 )
Other income (expense), net       408         67  
Income before income taxes       7,067         9,580  
Provision for income taxes       689         1,470  

Net income

    $ 6,378       $ 8,110  
             
Earnings per share:            
Basic     $ 0.15       $ 0.19  
Diluted     $ 0.15       $ 0.18  
             
Weighted-average common shares outstanding:            
Basic       42,412         43,081  
Diluted       43,149         44,056  
       

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

       
Non-GAAP Income Statement Items     Three Months Ended

April 4, 2015

      GAAP

Measure

    GAAP

Percent of Revenue

    Stock

Compensation Expense

    Intangible Asset Amortization     Acquisition Related Items     Termination Costs     Non-GAAP

Measure

    Non-GAAP

Percent of Revenue

Revenues     $ 163,705                                          
                                                 
Gross margin       96,369       58.9 %     $ 230     $ 390     $ 1,133     $ 24       $ 98,146     60.0 %
                                                 
Research and

development

      46,857       28.6 %       4,795       3,870       --       458        

37,734

    23.1 %
                                                 
Selling, general and

administrative

      42,300      

25.9

%

      5,494       1,056       2,836      

--

       

32,914

    20.1 %
                                                 
Operating income       7,212       4.4 %       10,519       5,316       3,969       482         27,498     16.8 %
                                                 
                                                 
Non-GAAP

Earnings Per Share

    Three Months Ended

April 4, 2015

     
      GAAP

Measure

    Stock

Compensation Expense*

    Intangible Asset Amortization*     Acquisition Related Items*     Termination Costs*     Tax

Impact of Adjustments

    Non-GAAP

Measure

     
Net income     $ 6,378     $ 10,519       $ 5,316     $ 3,969     $ 482     $ (3,285 )     $ 23,379      
                                                 
Diluted shares

outstanding

      43,149                                    

43,149

     
                                                 
Diluted earnings

per share

    $ 0.15                                   $ 0.54      
                                                     

 

* Represents pre-tax amounts

     

 

Unaudited Forward-Looking Statements Regarding Business Outlook

     
Business Outlook   Three Months Ending

July 4, 2015

    High   Low
Estimated GAAP diluted earnings per share   $0.17   $0.11
         
Estimated non-GAAP charges   0.39   0.39
         
Estimated non-GAAP diluted earnings per share   $0.56   $0.50
             

 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

             
      April 4, 2015     January 3, 2015
Assets            
Current assets:            
Cash and cash equivalents     $ 112,710       $ 141,706  
Short-term investments       148,795         193,489  

Accounts receivable, net of allowances for doubtful accounts of $785 at April 4, 2015 and $786 at January 3, 2015

      66,563         70,367  
Inventories       61,078         52,631  
Deferred income taxes       17,364         21,173  
Prepaid expenses and other current assets       51,301         49,171  
Total current assets       457,811         528,537  
Long-term investments       7,401         7,419  
Property and equipment, net       131,313         132,820  
Goodwill       264,687         228,781  
Other intangible assets, net       135,049         115,021  
Other assets, net       24,965         29,983  
Total assets     $ 1,021,226       $ 1,042,561  
             
Liabilities and Stockholders' Equity            
Current liabilities:            
Accounts payable     $ 39,295       $ 38,922  
Current portion of long-term debt       10,000         10,000  
Accrued expenses       45,391         73,646  
Deferred income on shipments to distributors       38,796         38,662  
Income taxes       1,340         2,084  
Total current liabilities       134,822         163,314  
Long-term debt       77,150         77,500  
Other non-current liabilities       45,817         43,691  
Total liabilities       257,789         284,505  
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; 42,689 and 42,225 shares issued and outstanding at April 4, 2015 and January 3, 2015, respectively

      4         4  
Additional paid-in capital       28,833         29,501  
Retained earnings       735,011         728,633  
Accumulated other comprehensive loss       (411 )       (82 )
Total stockholders' equity       763,437         758,056  
Total liabilities and stockholders' equity     $ 1,021,226       $ 1,042,561  
       

 

 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

       
      Three Months Ended
      April 4, 2015     March 29,

2014

Operating Activities            
Net income     $ 6,378       $ 8,110  
Adjustments to reconcile net income to cash provided by operating activities:            
Depreciation of property and equipment       2,987         3,290  
Amortization of other intangible assets and other assets       6,521         4,491  
Stock-based compensation expense       10,519         9,277  
Income tax benefit (shortfall) from stock-based awards       1,773         45  
Excess income tax benefit from stock-based awards       (1,785 )       (235 )
Deferred income taxes       6,844         6,784  
Changes in operating assets and liabilities:            
Accounts receivable       6,564         7,452  
Inventories       (6,424 )       1,083  
Prepaid expenses and other assets       8,584         14,266  
Accounts payable       447         1,195  
Accrued expenses       (5,046 )       21,367  
Deferred income on shipments to distributors       (1,049 )       1,736  
Income taxes       (8,409 )       (8,324 )
Other non-current liabilities       (3,816 )       (23,585 )
Net cash provided by operating activities       24,088         46,952  
             
Investing Activities            
Purchases of available-for-sale investments       (13,037 )       (43,366 )
Proceeds from sales and maturities of available-for-sale investments       57,739         28,242  
Purchases of property and equipment       (1,991 )       (1,673 )
Purchases of other assets       (935 )       (2,113 )
Acquisition of business, net of cash acquired       (76,899 )       --  
Net cash used in investing activities       (35,123 )       (18,910 )
             
Financing Activities            
Proceeds from issuance of common stock, net of cash paid for withheld taxes       (2,561 )       5,496  
Excess income tax benefit from stock-based awards       1,785         235  
Repurchases of common stock       (10,138 )       --  
Payment of acquisition-related contingent consideration       (4,464 )       --  
Payments on debt       (2,583 )       (1,250 )
Net cash provided by (used in) financing activities       (17,961 )       4,481  
             
Increase (decrease) in cash and cash equivalents       (28,996 )       32,523  
Cash and cash equivalents at beginning of period       141,706         95,800  
Cash and cash equivalents at end of period     $ 112,710       $ 128,323  

 

Silicon Labs
Jalene Hoover, +1-512-428-1610
Jalene.Hoover@silabs.com

 

Source: Silicon Labs

 

 

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