AUSTIN, Texas, Apr 28, 2010 (BUSINESS WIRE) -- Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today reported
first quarter revenue of $126.7 million, beating expectations and
setting a record for first quarter performance. The company also
exceeded expectations on gross margin and earnings per share.
Financial Highlights
First quarter revenue of $126.7 million was a 51 percent increase over
the same period in 2009 and flat sequentially, a better than seasonal
result. First quarter GAAP gross margin increased considerably to 66
percent. R&D investment for the first quarter was $29.9 million. SG&A
decreased to $28 million. Other income, principally interest income on
invested cash, was under $1 million. GAAP operating income was more than
20 percent for the third consecutive quarter. Fully diluted earnings per
share was $0.44, up dramatically from $0.01 during the same period last
year.
The following non-GAAP results exclude the impact of stock compensation
expense and other one-time charges. Non-GAAP gross margin for the
quarter was up again at 66.2 percent. Non-GAAP operating expenses
increased as expected to 38 percent. R&D investment increased to $25.8
million due to a record number of new product tape outs and increased
hiring. SG&A expense decreased to $22.3 million. Non-GAAP operating
income exceeded 28 percent of revenue. Non-GAAP diluted earnings per
share for the first quarter was $0.62, well above expectations and
nearly triple the result of the same period last year. The reconciling
charges are set forth in the financial measures table included below.
Share repurchases during the quarter totaled approximately $25 million.
The company ended the quarter with $447 million in cash, cash
equivalents and investments due to continued healthy cash flow from
operations.
Business Summary
Strong performance for the quarter was led by the company's broad-based
products, which were up 11 percent sequentially. Strength in networking
equipment and customer expansion resulted in another record quarter for
timing products. The embedded mixed-signal products also had a record
quarter, with particular strength in MCU coming from recovery in demand
among communications and industrial customers. Record development kit
shipments were driven by wireless applications in home security,
metering and home automation.
Strength in the company's consumer audio products partially offset a
better than seasonal decline in handsets and portable media players,
enabling the broadcast products overall to be down by only 10 percent.
Design traction continued for the company's video products, and the
company achieved first revenue for the silicon tuner in the first
quarter. The access product category remained a steady performer and was
about flat sequentially.
"Q1 was a great start to 2010," said Necip Sayiner, president and CEO of
Silicon Laboratories. "Our products are delivering on the growth we had
anticipated with very attractive gross margins. We are executing on a
record number of exciting new product developments and have been able to
attract an increasing number of talented employees to the company. Our
financial strength is giving us the ability to continue to invest and
capitalize on a number of untapped strategic opportunities."
The company guided revenues for the second quarter in the range of $131
to $135 million.
Webcast and Conference Call
A conference call discussing the results will follow this press release
today at 7:30 a.m. central time. An audio webcast will be available
simultaneously on Silicon Laboratories' 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- 888-562-2923 or +1 203-369-3750 (international).
Replays will be available through May 12, 2010.
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 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.
Forward Looking Statements
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, difficulties developing new products that achieve market
acceptance; dependence on a limited number of products and customers;
intellectual property litigation risks; inventory-related risks; risks
associated with acquisitions; difficulties managing international
activities; difficulties managing our manufacturers and subcontractors;
risks that Silicon Laboratories may not be able to manage strains
associated with its growth; credit risks associated with our accounts
receivable; dependence on key personnel; risks associated with
divestitures; geographic concentration of manufacturers, assemblers,
test service providers and customers in Asia that subjects Silicon
Laboratories' business and results of operations to risks of natural
disasters, epidemics, war and political unrest; 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, Silicon Labs and the Silicon
Labs logo 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 3,
2010
|
|
April 4,
2009
|
|
Revenues
|
$
|
126,719
|
|
|
$
|
83,701
|
|
|
Cost of revenues
|
|
43,129
|
|
|
|
33,023
|
|
|
Gross margin
|
|
83,590
|
|
|
|
50,678
|
|
|
Operating expenses:
|
|
|
|
|
Research and development
|
|
29,922
|
|
|
|
26,069
|
|
|
Selling, general and administrative
|
|
28,003
|
|
|
|
23,442
|
|
|
Operating expenses
|
|
57,925
|
|
|
|
49,511
|
|
|
Operating income
|
|
25,665
|
|
|
|
1,167
|
|
|
Other income (expense):
|
|
|
|
|
Interest income
|
|
666
|
|
|
|
882
|
|
|
Interest expense
|
|
(23
|
)
|
|
|
(52
|
)
|
|
Other income (expense), net
|
|
(297
|
)
|
|
|
(52
|
)
|
|
Income before income taxes
|
|
26,011
|
|
|
|
1,945
|
|
|
Provision for income taxes
|
|
4,932
|
|
|
|
1,274
|
|
|
Net income
|
$
|
21,079
|
|
|
$
|
671
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic
|
$
|
0.46
|
|
|
$
|
0.02
|
|
|
Diluted
|
$
|
0.44
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
Basic
|
|
45,816
|
|
|
|
44,633
|
|
|
Diluted
|
|
47,926
|
|
|
|
45,083
|
|
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(In thousands, except per share data)
|
|
|
|
|
|
Non-GAAP Income
Statement Items
|
|
Three Months Ended
April 3, 2010
|
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
|
Revenues
|
|
$
|
126,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
83,590
|
|
|
66.0
|
%
|
|
$
|
356
|
|
$
|
83,946
|
|
66.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
29,922
|
|
|
23.6
|
%
|
|
|
4,164
|
|
|
25,758
|
|
20.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
28,003
|
|
|
22.1
|
%
|
|
|
5,736
|
|
|
22,267
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
57,925
|
|
|
45.7
|
%
|
|
|
9,900
|
|
|
48,025
|
|
37.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
25,665
|
|
|
20.3
|
%
|
|
|
10,256
|
|
|
35,921
|
|
28.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted
Earnings Per Share
|
|
Three Months Ended
April 3, 2010
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Non-GAAP
Measure
|
|
|
|
|
|
Net income
|
|
$
|
21,079
|
|
$
|
8,769
|
|
|
$
|
29,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
47,926
|
|
|
--
|
|
|
|
47,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.44
|
|
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted
Earnings Per Share
|
|
Three Months Ended
April 4, 2009
|
|
|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Termination
Costs and
Impairments
|
|
Non-GAAP
Measure
|
|
|
|
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)
|
|
|
|
|
|
|
|
April 3,
2010
|
|
January 2,
2010
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
152,200
|
|
|
$
|
195,737
|
|
|
Short-term investments
|
|
268,332
|
|
|
|
214,486
|
|
|
Accounts receivable, net of allowance for doubtful
accounts
of $575 at April 3, 2010 and $567 at
January 2, 2010
|
|
56,932
|
|
|
|
56,128
|
|
|
Inventories
|
|
27,652
|
|
|
|
31,512
|
|
|
Deferred income taxes
|
|
7,908
|
|
|
|
7,620
|
|
|
Prepaid expenses and other current assets
|
|
21,161
|
|
|
|
18,515
|
|
|
Total current assets
|
|
534,185
|
|
|
|
523,998
|
|
|
Long-term investments
|
|
25,991
|
|
|
|
24,676
|
|
|
Property and equipment, net
|
|
26,654
|
|
|
|
27,785
|
|
|
Goodwill
|
|
105,109
|
|
|
|
105,109
|
|
|
Other intangible assets, net
|
|
40,037
|
|
|
|
41,886
|
|
|
Other assets, net
|
|
20,397
|
|
|
|
19,384
|
|
|
Total assets
|
$
|
752,373
|
|
|
$
|
742,838
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
28,491
|
|
|
$
|
28,759
|
|
|
Accrued expenses
|
|
24,443
|
|
|
|
25,399
|
|
|
Deferred income on shipments to distributors
|
|
28,420
|
|
|
|
28,470
|
|
|
Income taxes
|
|
1,056
|
|
|
|
6,011
|
|
|
Total current liabilities
|
|
82,410
|
|
|
|
88,639
|
|
|
Long-term obligations and other liabilities
|
|
24,327
|
|
|
|
24,403
|
|
|
Total liabilities
|
|
106,737
|
|
|
|
113,042
|
|
|
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;
45,790 and 45,772 shares issued and
outstanding at April 3,
2010 and January 2, 2010,
respectively
|
|
5
|
|
|
|
5
|
|
|
Additional paid-in capital
|
|
122,052
|
|
|
|
128,262
|
|
|
Retained earnings
|
|
526,964
|
|
|
|
505,885
|
|
|
Accumulated other comprehensive loss
|
|
(3,385
|
)
|
|
|
(4,356
|
)
|
|
Total stockholders' equity
|
|
645,636
|
|
|
|
629,796
|
|
|
Total liabilities and stockholders' equity
|
$
|
752,373
|
|
|
$
|
742,838
|
|
SOURCE: Silicon Laboratories Inc.
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Copyright Business Wire 2010