AUSTIN, Texas, Jul 28, 2010 (BUSINESS WIRE) -- Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today reported
record revenue of $134.6 million for the second quarter and delivered
record operating performance enabling better than expected earnings per
share. On a trailing twelve month basis, the company crossed $500
million in revenue while achieving record profitability and earnings
growth.
Financial Highlights
Second quarter revenue of $134.6 million was a nearly 30 percent
increase over the same period in 2009 and a six percent sequential
increase. Second quarter GAAP gross margin increased again considerably
to 67.5 percent. R&D investment for the second quarter was $30.5
million. SG&A expense was $29.7 million. GAAP operating income exceeded
20 percent for the fourth consecutive quarter, totaling 22.8 percent.
The GAAP tax rate was 31 percent and included a one-time charge related
to the acquisition of Silicon Clocks announced in April. Fully diluted
earnings per share were $0.44, more than double compared to the same
period last year.
The following non-GAAP results exclude the impact of stock compensation
expense and the one-time Silicon Clocks acquisition tax expense.
Non-GAAP gross margin for the quarter was up again to 67.8 percent.
Non-GAAP operating expenses decreased as a percent of revenue to 37.1
percent. R&D investment increased to $26.1 million and SG&A expense
increased to $23.8 million. Non-GAAP operating income exceeded 30
percent of revenue, a record for the company. Non-GAAP diluted earnings
per share for the second quarter were $0.72, well above expectations.
The reconciling charges are set forth in the financial measures table
included below.
Share repurchases during the quarter totaled approximately $75 million.
The Board of Directors replaced the remaining share repurchase
authorization with an increased $150 million authorization through the
end of 2011. The company ended the quarter with $380 million in cash,
cash equivalents and investments due to continued healthy cash flow from
operations.
Business Summary
Strong performance for the quarter was led again by the company's
broad-based products. Revenue was up 85 percent compared to the same
period last year and represented the largest percentage of the company's
revenue for the first time. Within the broad-based business, the
embedded mixed-signal products had a record quarter due primarily to
record MCU revenue. MCU strength resulted from strong demand for USB
products and new customer ramps in applications like touchscreens and
portable medical devices. The timing business also had another record
quarter driven by continued demand from networking equipment makers.
The broadcast business grew by more than 20 percent compared to the
second quarter of 2009. Consumer audio revenue exceeded handset revenue
in the quarter due to strong ramps into new customer programs. The
company also achieved key revenue and customer milestones in its video
business. The company introduced a number of new products in the second
quarter, including a new video demodulator as well as new clock ICs, new
low power MCUs, new touch sense controllers, and new isolators and
isolated gate drivers. The high level of new product activity is the
outcome of the company's focus on developing a rich R&D pipeline.
"Over the last twelve months we have become a half billion dollar
revenue company, delivered above model profitability resulting in some
of the best metrics in the business and generated high quality earnings
growth," said Necip Sayiner, President and CEO of Silicon Laboratories.
"Putting this in the context of our steady diversification, market share
gains and portfolio expansion, we believe the company will continue on
its path to sustained top and bottom line growth."
The company guided revenues for the third quarter in the range of $136
to $141 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 1 888-484-8258 or +1 203-369-3163 (international).
Replays will be available through August 11, 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
|
|
|
|
Six Months Ended
|
|
|
|
July 3,
2010
|
|
|
July 4,
2009
|
|
|
|
July 3,
2010
|
|
|
July 4,
2009
|
|
Revenues
|
|
$
|
134,577
|
|
|
|
$
|
104,216
|
|
|
|
|
$
|
261,296
|
|
|
|
$
|
187,917
|
|
|
Cost of revenues
|
|
|
43,684
|
|
|
|
|
39,435
|
|
|
|
|
|
86,813
|
|
|
|
|
72,458
|
|
|
Gross margin
|
|
|
90,893
|
|
|
|
|
64,781
|
|
|
|
|
|
174,483
|
|
|
|
|
115,459
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
30,509
|
|
|
|
|
25,868
|
|
|
|
|
|
60,431
|
|
|
|
|
51,937
|
|
|
Selling, general and administrative
|
|
|
29,737
|
|
|
|
|
26,187
|
|
|
|
|
|
57,740
|
|
|
|
|
49,629
|
|
|
Operating expenses
|
|
|
60,246
|
|
|
|
|
52,055
|
|
|
|
|
|
118,171
|
|
|
|
|
101,566
|
|
|
Operating income
|
|
|
30,647
|
|
|
|
|
12,726
|
|
|
|
|
|
56,312
|
|
|
|
|
13,893
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
633
|
|
|
|
|
655
|
|
|
|
|
|
1,299
|
|
|
|
|
1,537
|
|
|
Interest expense
|
|
|
(22
|
)
|
|
|
|
(51
|
)
|
|
|
|
|
(45
|
)
|
|
|
|
(103
|
)
|
|
Other income (expense), net
|
|
|
(586
|
)
|
|
|
|
342
|
|
|
|
|
|
(883
|
)
|
|
|
|
290
|
|
|
Income before income taxes
|
|
|
30,672
|
|
|
|
|
13,672
|
|
|
|
|
|
56,683
|
|
|
|
|
15,617
|
|
|
Provision for income taxes
|
|
|
9,625
|
|
|
|
|
3,942
|
|
|
|
|
|
14,557
|
|
|
|
|
5,216
|
|
|
Net income
|
|
$
|
21,047
|
|
|
|
$
|
9,730
|
|
|
|
|
$
|
42,126
|
|
|
|
$
|
10,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
0.92
|
|
|
|
$
|
0.23
|
|
|
Diluted
|
|
$
|
0.44
|
|
|
|
$
|
0.21
|
|
|
|
|
$
|
0.88
|
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
45,387
|
|
|
|
|
44,640
|
|
|
|
|
|
45,602
|
|
|
|
|
44,336
|
|
|
Diluted
|
|
|
47,371
|
|
|
|
|
45,975
|
|
|
|
|
|
47,649
|
|
|
|
|
45,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
|
|
|
|
|
|
|
Non-GAAP Income Statement Items
|
|
|
Three Months Ended
July 3, 2010
|
|
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
|
Revenues
|
|
|
$
|
134,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
90,893
|
|
|
67.5
|
%
|
|
$
|
351
|
|
$
|
91,244
|
|
67.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
30,509
|
|
|
22.7
|
%
|
|
|
4,386
|
|
|
26,123
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
|
29,737
|
|
|
22.0
|
%
|
|
|
5,938
|
|
|
23,799
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
60,246
|
|
|
44.7
|
%
|
|
|
10,324
|
|
|
49,922
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
30,647
|
|
|
22.8
|
%
|
|
|
10,675
|
|
|
41,322
|
|
30.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings Per Share
|
|
|
Three Months Ended
July 3, 2010
|
|
|
|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Acquisition
Tax Expense
|
|
Non-GAAP
Measure
|
|
|
|
Net income
|
|
|
$
|
21,047
|
|
$
|
9,156
|
|
|
$
|
3,850
|
|
$
|
34,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
|
47,371
|
|
|
--
|
|
|
|
--
|
|
|
47,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
$
|
0.44
|
|
|
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
July 3,
2010
|
|
|
January 2,
2010
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
80,969
|
|
|
|
$
|
195,737
|
|
|
Short-term investments
|
|
|
272,408
|
|
|
|
|
214,486
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$771 at July 3, 2010 and $567 at January 2, 2010
|
|
|
76,318
|
|
|
|
|
56,128
|
|
|
Inventories
|
|
|
29,100
|
|
|
|
|
31,512
|
|
|
Deferred income taxes
|
|
|
9,068
|
|
|
|
|
7,620
|
|
|
Prepaid expenses and other current assets
|
|
|
20,448
|
|
|
|
|
18,515
|
|
|
Total current assets
|
|
|
488,311
|
|
|
|
|
523,998
|
|
|
Long-term investments
|
|
|
26,170
|
|
|
|
|
24,676
|
|
|
Property and equipment, net
|
|
|
25,365
|
|
|
|
|
27,785
|
|
|
Goodwill
|
|
|
109,222
|
|
|
|
|
105,109
|
|
|
Other intangible assets, net
|
|
|
47,965
|
|
|
|
|
41,886
|
|
|
Other assets, net
|
|
|
23,465
|
|
|
|
|
19,384
|
|
|
Total assets
|
|
$
|
720,498
|
|
|
|
$
|
742,838
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
29,475
|
|
|
|
$
|
28,759
|
|
|
Accrued expenses
|
|
|
23,531
|
|
|
|
|
25,399
|
|
|
Deferred income on shipments to distributors
|
|
|
28,953
|
|
|
|
|
28,470
|
|
|
Income taxes
|
|
|
1,230
|
|
|
|
|
6,011
|
|
|
Total current liabilities
|
|
|
83,189
|
|
|
|
|
88,639
|
|
|
Long-term obligations and other liabilities
|
|
|
23,832
|
|
|
|
|
24,403
|
|
|
Total liabilities
|
|
|
107,021
|
|
|
|
|
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; 44,621
and 45,772 shares issued and outstanding at July 3, 2010 and
January 2, 2010, respectively
|
|
|
4
|
|
|
|
|
5
|
|
|
Additional paid-in capital
|
|
|
68,660
|
|
|
|
|
128,262
|
|
|
Retained earnings
|
|
|
548,011
|
|
|
|
|
505,885
|
|
|
Accumulated other comprehensive loss
|
|
|
(3,198
|
)
|
|
|
|
(4,356
|
)
|
|
Total stockholders' equity
|
|
|
613,477
|
|
|
|
|
629,796
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
720,498
|
|
|
|
$
|
742,838
|
|
SOURCE: Silicon Laboratories Inc.
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Copyright Business Wire 2010