Company Sees Growing Momentum in the Internet of Things
AUSTIN, Texas--(BUSINESS WIRE)--
Silicon
Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive,
mixed-signal integrated circuits (ICs), today reported financial results
for its first quarter ended March 29, 2014. Revenue in the first quarter
was at the top end of guidance at $145.7 million, compared with $146.2
million reported in the fourth quarter. Additionally, the company
reported excellent performance on its balance sheet with strong cash
flows and effective working capital management.
Q1 Financial Highlights
On a GAAP basis:
-
Gross margin was 59.8 percent
-
R&D expenses were $42.5 million
-
SG&A expenses were $34.6 million
-
Operating income as a percentage of revenue was 6.9 percent
-
Diluted earnings per share were $0.18
On a non-GAAP basis (results exclude the impact of stock compensation,
amortization from acquired intangible assets and certain other items as
set forth in the reconciliation tables below):
-
Gross margin was 60.2 percent
-
R&D expenses were $35.0 million
-
SG&A expenses were $28.5 million
-
Operating income was 16.6 percent
-
Diluted earnings per share were $0.42
Business Highlights
-
Broad-based revenue was $72.3 million, essentially flat sequentially,
as expected.
-
Broadcast exceeded expectations with revenue of $50.7 million,
including record revenue in video.
-
Access revenue decreased slightly, as expected, to $22.7 million.
Product Highlights
-
Introduced a new version of the Simplicity Studio™ development
ecosystem supporting Silicon Labs' MCU products in a single, unified
platform, making the embedded design process easier, faster and more
efficient.
-
Announced the expansion of Silicon Labs' Ember® ZigBee® portfolio with
the introduction of a new ARM®-based system-on-a-chip family that
reduces the cost and complexity of deploying ZigBee solutions in smart
metering and home automation applications.
-
Launched the industry's first single-chip digital ultraviolet (UV)
index sensor ICs designed to track UV sun exposure, heart rate and
blood oxygen levels for wearable products such as smart watches and
health and fitness trackers.
-
Acquired the full product portfolio and intellectual property of
Silicon Valley-based Touchstone Semiconductor, an early-stage
technology company and provider of low-power analog IC products
targeting Internet of Things applications.
Business Outlook
The company expects revenue in the second quarter to be in the range of
$147 million to $151 million. Second quarter diluted earnings per share
are expected to be between $0.15 and $0.19 on a GAAP basis and between
$0.43 and $0.47 on a non-GAAP basis. Both GAAP and non-GAAP estimates
include an estimated $0.03 per share effect from litigation costs.
"We continue to strengthen our position as a leading supplier of silicon
solutions for the Internet of Things," said Tyson Tuttle, CEO of Silicon
Labs. "We expect this momentum to drive record Broad-based revenue in
the second quarter."
Webcast and Conference Call
A conference call discussing the quarterly results will follow this
press release at 7:30 a.m. Central time. An audio webcast will be
available simultaneously on Silicon Labs' 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 (855) 859-2056 or (404) 537-3406 (international)
and by entering 39717388. The replay will be available through May 29.
About Silicon Labs
Silicon Labs is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs' diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size
and power consumption. For more information about Silicon Labs, please
visit www.silabs.com.
Forward-Looking Statements
This press release contains forward-looking statements based on Silicon
Labs' current expectations. The words "believe," "estimate," "expect,"
"intend," "anticipate," "plan," "project," "will" and similar phrases as
they relate to Silicon Labs are intended to identify such
forward-looking statements. These forward-looking statements reflect the
current views and assumptions of Silicon Labs 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 Labs may not be able to
maintain its historical growth; quarterly fluctuations in revenues and
operating results; difficulties developing new products that achieve
market acceptance; dependence on a limited number of products and
customers; intellectual property litigation risks; risks associated with
acquisitions and divestitures; product liability risks; difficulties
managing our distributors, manufacturers and subcontractors;
inventory-related risks; difficulties managing international activities;
risks that Silicon Labs may not be able to manage strains associated
with its growth; credit risks associated with our accounts receivable;
dependence on key personnel; stock price volatility; geographic
concentration of manufacturers, assemblers, test service providers and
customers in Asia that subjects Silicon Labs' business and results of
operations to risks of natural disasters, epidemics, war and political
unrest; debt-related risks; capital-raising risks; the competitive and
cyclical nature of the semiconductor industry; average selling prices of
products may decrease significantly and rapidly; information technology
risks; conflict mineral risks and other factors that are detailed in the
SEC filings of Silicon Laboratories Inc.Silicon Labs disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. References in this press release to Silicon Labs shall mean
Silicon Laboratories Inc.
Note to editors: Silicon Laboratories, Silicon Labs, the Silicon Labs
logo, Simplicity Studio and Ember are trademarks of Silicon Laboratories
Inc. All other product names noted herein may be trademarks of their
respective holders.
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|
|
|
|
|
|
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Silicon Laboratories Inc.
|
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Condensed Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
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Revenues
|
|
|
$
|
145,691
|
|
|
$
|
145,375
|
|
|
Cost of revenues
|
|
|
|
58,586
|
|
|
|
58,003
|
|
|
Gross margin
|
|
|
|
87,105
|
|
|
|
87,372
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Research and development
|
|
|
|
42,485
|
|
|
|
37,582
|
|
|
Selling, general and administrative
|
|
|
|
34,611
|
|
|
|
29,153
|
|
|
Operating expenses
|
|
|
|
77,096
|
|
|
|
66,735
|
|
|
Operating income
|
|
|
|
10,009
|
|
|
|
20,637
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest income
|
|
|
|
302
|
|
|
|
335
|
|
|
Interest expense
|
|
|
|
(798
|
)
|
|
|
(842
|
)
|
|
Other income (expense), net
|
|
|
|
67
|
|
|
|
(52
|
)
|
|
Income before income taxes
|
|
|
|
9,580
|
|
|
|
20,078
|
|
|
Provision for income taxes
|
|
|
|
1,470
|
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
8,110
|
|
|
$
|
20,034
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
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|
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|
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Basic
|
|
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$
|
0.19
|
|
|
$
|
0.47
|
|
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Diluted
|
|
|
$
|
0.18
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
43,081
|
|
|
|
42,186
|
|
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Diluted
|
|
|
|
44,056
|
|
|
|
43,110
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|
|
|
|
|
|
|
|
|
|
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
Statement Items
|
|
Three Months Ended
March 29, 2014
|
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
Termination
Costs
|
|
Acquisition
Related
Items
|
|
Non-GAAP
Measure
|
|
Non-
GAAP
Percent of
Revenue
|
|
Revenues
|
|
$
|
145,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
87,105
|
|
|
59.8
|
%
|
|
$
|
195
|
|
$
|
390
|
|
$
|
--
|
|
|
$
|
--
|
|
$
|
87,690
|
|
|
|
60.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
42,485
|
|
|
29.2
|
%
|
|
|
4,241
|
|
|
3,247
|
|
|
--
|
|
|
|
--
|
|
|
34,997
|
|
|
|
24.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
34,611
|
|
|
23.7
|
%
|
|
|
4,841
|
|
|
729
|
|
|
(267
|
)
|
|
|
816
|
|
|
28,492
|
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
10,009
|
|
|
6.9
|
%
|
|
|
9,277
|
|
|
4,366
|
|
|
(267
|
)
|
|
|
816
|
|
|
24,201
|
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted
Earnings Per Share
|
|
Three Months Ended
March 29, 2014
|
|
|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
Termination
Costs
|
|
Acquisition
Related
Items
|
|
Release of
Unrecognized
Tax Benefits
|
|
Non-
GAAP
Measure
|
|
Net income
|
|
|
|
$
|
8,110
|
|
|
$
|
7,966
|
|
$
|
3,019
|
|
$
|
(199
|
)
|
|
$
|
816
|
|
$
|
(1,292
|
)
|
|
$
|
18,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
44,056
|
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
--
|
|
|
--
|
|
|
|
44,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Forward-Looking Statements Regarding Business Outlook
(In
thousands, except per share information)
|
|
|
|
|
Business Outlook
|
|
Three Months Ending
June 28, 2014
|
|
|
|
High
|
|
Low
|
|
Estimated GAAP diluted earnings per share
|
|
$
|
0.19
|
|
$
|
0.15
|
|
|
|
|
|
|
|
Estimated non-GAAP charges
|
|
|
0.28
|
|
|
0.28
|
|
|
|
|
|
|
|
Estimated non-GAAP diluted earnings per share
|
|
$
|
0.47
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 29,
2014
|
|
December 28,
2013
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
128,323
|
|
|
$
|
95,800
|
|
|
Short-term investments
|
|
|
|
194,765
|
|
|
|
179,593
|
|
|
Accounts receivable, net of allowances for doubtful accounts of
$767 at March 29, 2014 and $797 at December 28, 2013
|
|
|
|
64,672
|
|
|
|
72,124
|
|
|
Inventories
|
|
|
|
44,334
|
|
|
|
45,271
|
|
|
Deferred income taxes
|
|
|
|
15,203
|
|
|
|
18,878
|
|
|
Prepaid expenses and other current assets
|
|
|
|
40,214
|
|
|
|
47,651
|
|
|
Total current assets
|
|
|
|
487,511
|
|
|
|
459,317
|
|
|
Long-term investments
|
|
|
|
10,997
|
|
|
|
10,632
|
|
|
Property and equipment, net
|
|
|
|
130,829
|
|
|
|
132,445
|
|
|
Goodwill
|
|
|
|
228,781
|
|
|
|
228,781
|
|
|
Other intangible assets, net
|
|
|
|
128,453
|
|
|
|
131,593
|
|
|
Other assets, net
|
|
|
|
23,482
|
|
|
|
28,382
|
|
|
Total assets
|
|
|
$
|
1,010,053
|
|
|
$
|
991,150
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
22,707
|
|
|
$
|
22,126
|
|
|
Current portion of long-term debt
|
|
|
|
8,750
|
|
|
|
7,500
|
|
|
Accrued expenses
|
|
|
|
67,745
|
|
|
|
45,975
|
|
|
Deferred income on shipments to distributors
|
|
|
|
32,589
|
|
|
|
30,853
|
|
|
Income taxes
|
|
|
|
1,330
|
|
|
|
2,693
|
|
|
Total current liabilities
|
|
|
|
133,121
|
|
|
|
109,147
|
|
|
Long-term debt
|
|
|
|
85,000
|
|
|
|
87,500
|
|
|
Other non-current liabilities
|
|
|
|
30,737
|
|
|
|
55,941
|
|
|
Total liabilities
|
|
|
|
248,858
|
|
|
|
252,588
|
|
|
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;
43,433 and 42,779 shares issued and outstanding at
March 29, 2014 and December 28, 2013, respectively
|
|
|
|
4
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
|
62,883
|
|
|
|
48,630
|
|
|
Retained earnings
|
|
|
|
698,722
|
|
|
|
690,612
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(414
|
)
|
|
|
(684
|
)
|
|
Total stockholders' equity
|
|
|
|
761,195
|
|
|
|
738,562
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,010,053
|
|
|
$
|
991,150
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 29,
2014
|
|
March 30,
2013
|
|
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
8,110
|
|
|
$
|
20,034
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
|
3,290
|
|
|
|
3,297
|
|
|
Amortization of other intangible assets and other assets
|
|
|
|
4,491
|
|
|
|
2,840
|
|
|
Stock-based compensation expense
|
|
|
|
9,277
|
|
|
|
6,260
|
|
|
Income tax benefit (shortfall) from stock-based awards
|
|
|
|
45
|
|
|
|
(363
|
)
|
|
Excess income tax benefit from stock-based awards
|
|
|
|
(235
|
)
|
|
|
(217
|
)
|
|
Deferred income taxes
|
|
|
|
6,784
|
|
|
|
7,521
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
7,452
|
|
|
|
5,256
|
|
|
Inventories
|
|
|
|
1,083
|
|
|
|
(7,350
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
14,266
|
|
|
|
4,620
|
|
|
Accounts payable
|
|
|
|
1,195
|
|
|
|
2,356
|
|
|
Accrued expenses
|
|
|
|
(2,218
|
)
|
|
|
(4,330
|
)
|
|
Deferred income on shipments to distributors
|
|
|
|
1,736
|
|
|
|
(598
|
)
|
|
Income taxes
|
|
|
|
(8,324
|
)
|
|
|
(9,818
|
)
|
|
Net cash provided by operating activities
|
|
|
|
46,952
|
|
|
|
29,508
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
Purchases of available-for-sale investments
|
|
|
|
(43,366
|
)
|
|
|
(78,851
|
)
|
|
Proceeds from sales and maturities of available-for-sale investments
|
|
|
|
28,242
|
|
|
|
25,674
|
|
|
Purchases of property and equipment
|
|
|
|
(1,673
|
)
|
|
|
(3,898
|
)
|
|
Purchases of other assets
|
|
|
|
(2,113
|
)
|
|
|
(1,228
|
)
|
|
Net cash used in investing activities
|
|
|
|
(18,910
|
)
|
|
|
(58,303
|
)
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net of shares withheld for
taxes
|
|
|
|
5,496
|
|
|
|
4,915
|
|
|
Excess income tax benefit from stock-based awards
|
|
|
|
235
|
|
|
|
217
|
|
|
Payments on debt
|
|
|
|
(1,250
|
)
|
|
|
(2,500
|
)
|
|
Net cash provided by financing activities
|
|
|
|
4,481
|
|
|
|
2,632
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
32,523
|
|
|
|
(26,163
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
95,800
|
|
|
|
105,426
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
128,323
|
|
|
$
|
79,263
|
|
Silicon Labs
Deborah Stapleton, +1-650-470-4200
Deborah.Stapleton@silabs.com
Source: Silicon Laboratories Inc.
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