AUSTIN, Texas, Feb 03, 2010 (BUSINESS WIRE) -- Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today reported
fourth quarter revenue of $127.2 million, which far exceeded the
pre-recession peak and represented a 28 percent increase over the same
period in 2008. Revenue for the year totaled $441 million, a six percent
increase over 2008, and a very strong result compared to the decline in
the overall industry during the same period. Even more notable is the
combination of revenue growth, further gross margin improvement and
earnings expansion enabling the company to make upward revisions to its
financial model.
2009 Highlights
-
Year over year growth was driven by record revenue for audio, video,
MCU, timing, wireless and power products.
-
A record number of new introductions enabled a 40 percent increase in
the company's served market and included the addition of new human
interface products, new isolation products, a silicon TV tuner, and
new low power and automotive MCUs.
-
Gross margins on both a GAAP and a non-GAAP basis increased by 190 and
140 basis points, respectively, resulting from improved margins in all
three of the company's main product areas.
-
The company delivered 15 percent GAAP operating income and 25 percent
non-GAAP operating income for the year while maintaining healthy
investments in R&D.
-
The company ended the year with a cash, cash equivalents and
investments balance up more than 30 percent to $435 million.
-
The company continued to repurchase shares and began execution of a
new $150 million share repurchase authorization.
Fourth Quarter Financial Results
Fourth quarter revenue of $127.2 million represented a record for the
company. GAAP results showed significant improvement over the course of
the year. Fourth quarter GAAP gross margin increased considerably to
65.5 percent and 63.4 percent for the full year. R&D investment for the
fourth quarter was $26.6 million. SG&A increased to $30.6 million. Other
income, principally interest income on invested cash, was under $1
million. GAAP operating income was more than 20 percent in the fourth
quarter, up from 7 percent in the same period in 2008. Fully diluted
earnings per share was 84 cents for the fourth quarter and $1.57 for the
full year, up dramatically from 14 cents and 67 cents, respectively, in
2008.
The earnings results reflect a 40 cent impact from an Advance Pricing
Agreement the company entered into with the IRS that covers historical
tax years from 2005 through 2009, allowing the immediate reversal of tax
reserves established for each of those periods as well as providing more
certainty regarding the company's future effective tax rate.
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 to 65.7 percent. Non-GAAP gross margin for the year
was 63.8 percent, an industry-leading result when paired with the
company's revenue growth. Non-GAAP operating expenses increased as
expected to 36 percent of the company's revenue as R&D investment
increased slightly to $23.2 million and SG&A expense increased to $22.5
million. Non-GAAP operating income was nearly 30 percent of revenue for
the fourth quarter and 25.2 percent for the year. Non-GAAP diluted
earnings per share for the fourth quarter was $1.06 and $2.40 for the
full year, compared to $1.89 for all of 2008. The reconciling charges
are set forth in the financial measures table included below.
Business Summary
Strong performance for the quarter was led by the company's Broad-based
products, which were up 12 percent sequentially. The MCU products had
another record quarter as demand for high-end precision mixed-signal and
small form factor devices continued to rebound. The Timing products had
another record quarter as well. Clock and oscillator design wins in the
quarter increased by 50 percent sequentially, signaling continued
momentum.
The company's Access products were up eight percent sequentially in the
fourth quarter. Both embedded modems and SLICs grew quarter to quarter
due to strength in demand in set-top boxes and voice over DSL gateways,
respectively. And as expected, the Broadcast products were down 10
percent sequentially. Anticipated softness at the company's largest
customer was partially offset by ramps at new, major customers.
"We executed well in 2009, making progress on the critical projects and
design wins needed to position the business to outperform again in 2010
and beyond," said Necip Sayiner, president and CEO of Silicon
Laboratories. "We believe we have visibility into continued gross and
operating margin strength as all three of our product groups, Access,
Broadcast and Broad-based, deliver solid growth in 2010."
The company guided revenues for the first quarter in the range of $120
to $125 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 1-888-662-6658 or +1 203-369-2037 (international).
Replays will be available through February 17th, 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.
|
Consolidated Statements of Income
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
January 2,
2010
|
|
January 3,
2009
|
|
January 2,
2010
|
|
January 3,
2009
|
Revenues
|
|
$
|
127,190
|
|
|
$
|
99,348
|
|
|
$
|
441,020
|
|
|
$
|
415,630
|
|
Cost of revenues
|
|
|
43,930
|
|
|
|
39,252
|
|
|
|
161,267
|
|
|
|
159,845
|
|
Gross margin
|
|
|
83,260
|
|
|
|
60,096
|
|
|
|
279,753
|
|
|
|
255,785
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
26,553
|
|
|
|
27,369
|
|
|
|
104,394
|
|
|
|
101,205
|
|
Selling, general and administrative
|
|
|
30,629
|
|
|
|
25,639
|
|
|
|
108,848
|
|
|
|
100,674
|
|
In-process research and development
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
10,250
|
|
Operating expenses
|
|
|
57,182
|
|
|
|
53,008
|
|
|
|
213,242
|
|
|
|
212,129
|
|
Operating income
|
|
|
26,078
|
|
|
|
7,088
|
|
|
|
66,511
|
|
|
|
43,656
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
640
|
|
|
|
1,172
|
|
|
|
2,725
|
|
|
|
10,449
|
|
Interest expense
|
|
|
(25
|
)
|
|
|
(108
|
)
|
|
|
(180
|
)
|
|
|
(433
|
)
|
Other income (expense), net
|
|
|
(388
|
)
|
|
|
(16
|
)
|
|
|
(90
|
)
|
|
|
(556
|
)
|
Income before income taxes
|
|
|
26,305
|
|
|
|
8,136
|
|
|
|
68,966
|
|
|
|
53,116
|
|
Provision for income taxes
|
|
|
(13,946
|
)
|
|
|
1,812
|
|
|
|
(4,126
|
)
|
|
|
20,181
|
|
Net income
|
|
$
|
40,251
|
|
|
$
|
6,324
|
|
|
$
|
73,092
|
|
|
$
|
32,935
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.88
|
|
|
$
|
0.14
|
|
|
$
|
1.62
|
|
|
$
|
0.68
|
|
Diluted
|
|
$
|
0.84
|
|
|
$
|
0.14
|
|
|
$
|
1.57
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
45,650
|
|
|
|
45,256
|
|
|
|
45,023
|
|
|
|
48,109
|
|
Diluted
|
|
|
47,786
|
|
|
|
45,635
|
|
|
|
46,542
|
|
|
|
48,989
|
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
|
(In thousands, except per share data)
|
|
Non-GAAP Income Statement Items
|
|
Three Months Ended
January 2, 2010
|
|
|
|
|
GAAP
Measure
|
|
GAAP Percent of Revenue
|
|
Stock Compensation Expense
|
|
Non-GAAP
Measure
|
|
Non-GAAP Percent of Revenue
|
|
|
Revenues
|
|
$
|
127,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
83,260
|
|
|
65.5
|
%
|
|
$
|
315
|
|
$
|
83,575
|
|
|
65.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
26,553
|
|
|
20.9
|
%
|
|
|
3,366
|
|
|
23,187
|
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
30,629
|
|
|
24.1
|
%
|
|
|
8,117
|
|
|
22,512
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
57,182
|
|
|
45.0
|
%
|
|
|
11,483
|
|
|
45,699
|
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
26,078
|
|
|
20.5
|
%
|
|
|
11,798
|
|
|
37,876
|
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income Statement Items
|
|
Year Ended
January 2, 2010
|
|
|
GAAP
Measure
|
|
GAAP Percent of Revenue
|
|
Stock Compensation Expense
|
|
Termination Costs and Impairments
|
|
Non-GAAP Measure
|
|
Non-GAAP Percent of Revenue
|
Revenues
|
|
$
|
441,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
279,753
|
|
|
63.4
|
%
|
|
$
|
1,457
|
|
$
|
10
|
|
$
|
281,220
|
|
|
63.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
66,511
|
|
|
15.0
|
%
|
|
|
43,974
|
|
|
821
|
|
|
111,306
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings Per Share
|
|
Year Ended
January 2, 2010
|
|
|
|
|
|
|
GAAP
Measure
|
|
Stock Compensation
Expense
|
|
Termination Costs and Impairments
|
|
Non-GAAP
Measure
|
|
|
|
|
Net income
|
|
$
|
73,092
|
|
$
|
37,753
|
|
|
$
|
732
|
|
$
|
111,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
46,542
|
|
|
--
|
|
|
|
--
|
|
|
46,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.57
|
|
|
|
|
|
$
|
2.40
|
|
|
|
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
|
(In thousands, except per share data)
|
(Continued)
|
|
Non-GAAP Income Statement Items
|
|
Year Ended
January 3, 2009
|
|
|
|
|
GAAP Measure
|
|
GAAP Percent of Revenue
|
|
Stock Compensation Expense
|
|
Cost of Sales Fair Value Adjustment
|
|
Non-GAAP Measure
|
|
Non-GAAP Percent of Revenue
|
|
|
Revenues
|
|
$
|
415,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
255,785
|
|
|
61.5
|
%
|
|
$
|
1,437
|
|
$
|
2,159
|
|
$
|
259,381
|
|
|
62.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings Per Share
|
|
Year Ended
January 3, 2009
|
|
|
GAAP Measure
|
|
Termination Costs and Impairments
|
|
Stock Compensation Expense
|
|
Cost of Sales Fair Value Adjustment
|
|
Acquisition Tax Expense
|
|
IPR&D
|
|
Non-GAAP Measure
|
Net income
|
|
$
|
32,935
|
|
$
|
1,208
|
|
|
$
|
35,022
|
|
$
|
1,403
|
|
$
|
11,756
|
|
$
|
10,250
|
|
|
$
|
92,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
48,989
|
|
|
--
|
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
48,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.89
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Continued)
|
Non-GAAP Diluted Earnings Per Share
|
|
Three Months Ended
January 2, 2010
|
|
|
GAAP
Measure
|
|
Stock
Compensation Expense
|
|
Non-GAAP
Measure
|
Net income
|
|
$40,251
|
|
$10,234
|
|
$50,485
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
47,786
|
|
--
|
|
47,786
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$ 0.84
|
|
|
|
$ 1.06
|
|
|
|
|
|
|
|
Tax impact of prior period
adjustments
|
|
|
|
|
|
$ (0.40)
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
$ 0.66
|
Silicon Laboratories Inc.
|
|
Consolidated Balance Sheets
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
January 2,
2010
|
|
January 3,
2009
|
Assets
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
195,737
|
|
|
$
|
172,272
|
|
Short-term investments
|
|
214,486
|
|
|
|
101,267
|
|
Accounts receivable, net of allowance for doubtful accounts of $567
at January 2, 2010 and $1,011 at January 3, 2009
|
|
56,128
|
|
|
|
36,144
|
|
Inventories
|
|
31,512
|
|
|
|
28,293
|
|
Deferred income taxes
|
|
7,620
|
|
|
|
6,439
|
|
Prepaid expenses and other current assets
|
|
18,515
|
|
|
|
18,297
|
|
Total current assets
|
|
523,998
|
|
|
|
362,712
|
|
Long-term investments
|
|
24,676
|
|
|
|
51,821
|
|
Property and equipment, net
|
|
27,785
|
|
|
|
30,496
|
|
Goodwill
|
|
105,109
|
|
|
|
105,515
|
|
Other intangible assets, net
|
|
41,886
|
|
|
|
49,728
|
|
Other assets, net
|
|
19,384
|
|
|
|
23,973
|
|
Total assets
|
$
|
742,838
|
|
|
$
|
624,245
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
|
28,759
|
|
|
$
|
22,274
|
|
Accrued expenses
|
|
25,399
|
|
|
|
29,119
|
|
Deferred income on shipments to distributors
|
|
28,470
|
|
|
|
21,599
|
|
Income taxes
|
|
6,011
|
|
|
|
4
|
|
Total current liabilities
|
|
88,639
|
|
|
|
72,996
|
|
Long-term obligations and other liabilities
|
|
24,403
|
|
|
|
48,789
|
|
Total liabilities
|
|
113,042
|
|
|
|
121,785
|
|
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; 45,772
and 44,613 shares issued and outstanding at January 2, 2010 and
January 3, 2009, respectively
|
|
5
|
|
|
|
4
|
|
Additional paid-in capital
|
|
128,262
|
|
|
|
75,711
|
|
Retained earnings
|
|
505,885
|
|
|
|
432,793
|
|
Accumulated other comprehensive loss
|
|
(4,356
|
)
|
|
|
(6,048
|
)
|
Total stockholders' equity
|
|
629,796
|
|
|
|
502,460
|
|
Total liabilities and stockholders' equity
|
$
|
742,838
|
|
|
$
|
624,245
|
|
SOURCE: Silicon Laboratories Inc.
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Copyright Business Wire 2010