Exceeds Guidance on Revenue, Gross Margin and EPS
Second Quarter Financial Highlights
On a GAAP basis:
On a non-GAAP basis (results exclude the impact of stock compensation, amortization of acquired intangible assets and certain other items as set forth in the reconciliation tables below):
Product Highlights
Business Outlook
The company expects revenue in the third quarter to be in the range of
"We are pleased to report exceptional second quarter financial
performance, including record revenue in all of our strategic growth
products," said
Webcast and Conference Call
A conference call discussing the quarterly results will follow this
press release at
About
Forward-Looking Statements
This press release contains forward-looking statements based on
Note to editors:
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Condensed Consolidated Statements of Income | |||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
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Revenues | $ | 174,908 | $ | 164,856 | $ | 336,933 | $ | 328,561 | |||||||||||||
Cost of revenues | 66,614 | 67,428 | 133,108 | 134,764 | |||||||||||||||||
Gross margin | 108,294 | 97,428 | 203,825 | 193,797 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Research and development | 51,635 | 47,465 | 100,681 | 94,322 | |||||||||||||||||
Selling, general and administrative | 39,045 | 40,960 | 78,682 | 83,260 | |||||||||||||||||
Operating expenses | 90,680 | 88,425 | 179,363 | 177,582 | |||||||||||||||||
Operating income | 17,614 | 9,003 | 24,462 | 16,215 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income | 278 | 166 | 549 | 358 | |||||||||||||||||
Interest expense | (641 | ) | (728 | ) | (1,296 | ) | (1,473 | ) | |||||||||||||
Other, net | 18 | 90 | (373 | ) | 498 | ||||||||||||||||
Income before income taxes | 17,269 | 8,531 | 23,342 | 15,598 | |||||||||||||||||
Provision for income taxes | 1,710 | 956 | 1,975 | 1,645 | |||||||||||||||||
Net income |
$ | 15,559 | $ | 7,575 | $ | 21,367 | $ | 13,953 | |||||||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.18 | $ | 0.51 | $ | 0.33 | |||||||||||||
Diluted | $ | 0.37 | $ | 0.17 | $ | 0.51 | $ | 0.32 | |||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||
Basic | 41,775 | 42,823 | 41,702 | 42,617 | |||||||||||||||||
Diluted | 42,284 | 43,461 | 42,242 | 43,305 | |||||||||||||||||
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures |
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(In thousands, except per share data) |
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Non-GAAP Income |
Three Months Ended
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GAAP |
GAAP |
Stock |
Intangible |
Termination |
Non- |
Non-GAAP |
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Revenues | $ | 174,908 | |||||||||||||||||||||||||||||
Gross margin | 108,294 | 61.9 | % | $ | 269 | $ | 389 | $ | -- | $ | 108,952 | 62.3 | % | ||||||||||||||||||
Research and
development |
51,635 | 29.5 | % | 5,205 | 5,616 | 236 |
40,578 |
23.2 | % | ||||||||||||||||||||||
Selling, general and
administrative |
39,045 |
22.3 |
% |
5,044 | 1,419 | 63 |
32,519 |
18.6 | % | ||||||||||||||||||||||
Operating income | 17,614 | 10.1 | % | 10,518 | 7,424 | 299 | 35,855 | 20.5 | % | ||||||||||||||||||||||
Non-GAAP |
Three Months Ended
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GAAP |
Stock |
Intangible |
Termination |
Income Tax |
Non- |
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Net income | $ | 15,559 | $ | 10,518 | $ | 7,424 | $ | 299 | $ | (2,046 | ) | $ | 31,754 | ||||||||||||||||||
Diluted shares
outstanding |
42,284 |
42,284 |
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Diluted earnings
per share |
$ | 0.37 |
$ |
0.75 |
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* Represents pre-tax amounts
Unaudited Forward-Looking Statements Regarding Business Outlook |
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Business Outlook |
Three Months Ending |
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High | Low | ||||||||
Estimated GAAP diluted earnings per share | $ | 0.33 | $ | 0.27 | |||||
Estimated non-GAAP charges | 0.34 | 0.34 | |||||||
Estimated non-GAAP diluted earnings per share | $ | 0.67 | $ | 0.61 | |||||
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Condensed Consolidated Balance Sheets | |||||||||||
(In thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
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Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 101,334 | $ | 114,085 | |||||||
Short-term investments | 142,326 | 128,901 | |||||||||
Accounts receivable, net | 71,990 | 73,601 | |||||||||
Inventories | 56,388 | 53,895 | |||||||||
Prepaid expenses and other current assets | 53,326 | 52,658 | |||||||||
Total current assets | 425,364 | 423,140 | |||||||||
Long-term investments | 6,921 | 7,126 | |||||||||
Property and equipment, net | 130,498 | 131,132 | |||||||||
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272,722 | 272,722 | |||||||||
Other intangible assets, net | 106,246 | 121,354 | |||||||||
Other assets, net | 50,837 | 55,989 | |||||||||
Total assets | $ | 992,588 | $ | 1,011,463 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 41,152 | $ | 42,127 | |||||||
Current portion of long-term debt | 10,000 | 10,000 | |||||||||
Accrued expenses | 47,004 | 52,131 | |||||||||
Deferred income on shipments to distributors | 39,257 | 35,448 | |||||||||
Income taxes | 3,567 | 2,615 | |||||||||
Total current liabilities | 140,980 | 142,321 | |||||||||
Long-term debt | 62,500 | 67,500 | |||||||||
Other non-current liabilities | 27,959 | 40,528 | |||||||||
Total liabilities | 231,439 | 250,349 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock - shares issued and outstanding |
-- | -- | |||||||||
Common stock - 41,637 and 41,727 shares issued and outstanding at
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4 | 4 | |||||||||
Additional paid-in capital | -- | 13,868 | |||||||||
Retained earnings | 761,872 | 747,749 | |||||||||
Accumulated other comprehensive loss | (727 | ) | (507 | ) | |||||||
Total stockholders' equity | 761,149 | 761,114 | |||||||||
Total liabilities and stockholders' equity | $ | 992,588 | $ | 1,011,463 | |||||||
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Condensed Consolidated Statements of Cash Flows | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended | |||||||||||
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Operating Activities | |||||||||||
Net income | $ | 21,367 | $ | 13,953 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation of property and equipment | 6,675 | 6,029 | |||||||||
Amortization of other intangible assets and other assets | 15,534 | 14,697 | |||||||||
Stock-based compensation expense | 20,861 | 21,576 | |||||||||
Income tax benefit (shortfall) from stock-based awards | (1,127 | ) | 2,781 | ||||||||
Excess income tax benefit from stock-based awards | (91 | ) | (2,056 | ) | |||||||
Deferred income taxes | 817 | 3,892 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 1,611 | 1,724 | |||||||||
Inventories | (2,888 | ) | (6,534 | ) | |||||||
Prepaid expenses and other assets | 3,282 | 452 | |||||||||
Accounts payable | (1,680 | ) | (3,359 | ) | |||||||
Accrued expenses | 4,372 | (1,027 | ) | ||||||||
Deferred income on shipments to distributors | 3,773 | (2,132 | ) | ||||||||
Income taxes | (1,338 | ) | (7,171 | ) | |||||||
Other non-current liabilities | (10,737 | ) | (5,622 | ) | |||||||
Net cash provided by operating activities | 60,431 | 37,203 | |||||||||
Investing Activities | |||||||||||
Purchases of available-for-sale investments | (92,222 | ) | (46,908 | ) | |||||||
Sales and maturities of available-for-sale investments | 78,950 | 92,759 | |||||||||
Purchases of property and equipment | (5,146 | ) | (4,714 | ) | |||||||
Purchases of other assets | (2,215 | ) | (1,871 | ) | |||||||
Acquisition of business, net of cash acquired | -- | (76,899 | ) | ||||||||
Net cash used in investing activities | (20,633 | ) | (37,633 | ) | |||||||
Financing Activities | |||||||||||
Payments on debt | (5,000 | ) | (5,083 | ) | |||||||
Repurchases of common stock | (36,103 | ) | (10,418 | ) | |||||||
Payment of taxes withheld for vested stock awards | (9,399 | ) | (10,783 | ) | |||||||
Proceeds from the issuance of common stock | 7,362 | 12,467 | |||||||||
Excess income tax benefit from stock-based awards | 91 | 2,056 | |||||||||
Payment of acquisition-related contingent consideration | (9,500 | ) | (4,464 | ) | |||||||
Net cash used in financing activities | (52,549 | ) | (16,225 | ) | |||||||
Decrease in cash and cash equivalents | (12,751 | ) | (16,655 | ) | |||||||
Cash and cash equivalents at beginning of period | 114,085 | 141,706 | |||||||||
Cash and cash equivalents at end of period | $ | 101,334 | $ | 125,051 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727005252/en/
Jalene.Hoover@silabs.com
Source:
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