Revised third quarter expectations for the mobile handset business
include both weaker than expected demand for Aero® transceivers due
to prolonged inventory adjustments in China and lower than anticipated
sales to some ODMs due to demand shifts at their OEM customers. The
broad-based mixed-signal business is also expected to be down slightly
sequentially due to weaker than expected analog modem demand.
The company also revised third quarter earnings per share
guidance. Diluted net income per share on a GAAP basis is expected to
be $0.05 to $0.08. Non-GAAP third quarter diluted net income per share
is expected to be $0.22 to $0.25. This excludes anticipated non-cash
charges of $0.14 for stock compensation expense and approximately
$0.03 for the in process R&D write-off from the StackCom acquisition.
Silicon Laboratories' third quarter financial announcement and
conference call are scheduled for October 23rd, at which time the
company will discuss results in more detail as well as the outlook for
the fourth quarter of fiscal 2006.
About Silicon Laboratories Inc.
Silicon Laboratories Inc. is a leading designer of
high-performance, analog-intensive, mixed-signal integrated circuits
(ICs) for a broad range of applications. Silicon Laboratories' diverse
portfolio of highly integrated, patented solutions is developed by a
world-class engineering team with decades of cumulative expertise in
cutting-edge mixed-signal design. The company has design, engineering,
marketing, sales and applications offices throughout North America,
Europe and Asia. For more information about Silicon Laboratories
please visit www.silabs.com.
Cautionary Language
This press release contains forward-looking statements based on
Silicon Laboratories' current expectations. The words "believe,"
"estimate," "expect," "intend," "anticipate," "plan," "project,"
"will" and similar phrases as they relate to Silicon Laboratories are
intended to identify such forward-looking statements. These
forward-looking statements reflect the current views and assumptions
of Silicon Laboratories 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 Laboratories may not be able to
maintain its historical growth; quarterly fluctuations in revenues and
operating results; volatile stock price; average selling prices of
products may decrease significantly and rapidly, especially for mobile
handset products; dependence on a limited number of products and
customers; risks associated with shifting market demand from GSM/GPRS
to EDGE and WCDMA; difficulties developing new products that achieve
market acceptance; risks that Silicon Laboratories may not be able to
manage strains associated with its growth; dependence on key
personnel; difficulties managing our manufacturers and subcontractors;
difficulties managing international activities; credit risks
associated with our accounts receivable; geographic concentration of
manufacturers, assemblers, test service providers and customers in the
Pacific Rim that subjects Silicon Laboratories' business and results
of operations to risks of natural disasters, epidemics, war and
political unrest; product development risks; inventory-related risks;
intellectual property litigation risks; risks associated with
acquisitions; the competitive and cyclical nature of the semiconductor
industry and other factors that are detailed in Silicon Laboratories'
filings with the SEC. Silicon Laboratories disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Note to editors: Silicon Laboratories, Aero and the Silicon
Laboratories logo are trademarks of Silicon Laboratories Inc. All
other product names noted herein may be trademarks of their respective
holders.
CONTACT: Silicon Laboratories Inc., Austin
Shannon Pleasant, 512-464-9254
investor.relations@silabs.com
SOURCE: Silicon Laboratories Inc.