Record Revenue for 2013
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 fourth quarter and fiscal year ended Dec. 28, 2013. Revenue in
the fourth quarter was $146.2 million, a slight decrease from the $146.9
million reported in the third quarter. Revenue for fiscal 2013 was a
record $580.1 million, compared with $563.3 million in 2012.
Q4 Financial Highlights
On a GAAP basis:
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Gross margins increased sequentially to 60.6 percent
-
R&D investment increased sequentially to $42.2 million
-
SG&A expenses declined sequentially to $32.3 million
-
Operating income increased sequentially to 9.7 percent of revenue
-
Diluted earnings per share increased sequentially to $0.24
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 table below):
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Gross margins increased sequentially to 61.2 percent
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R&D expenses increased sequentially to $34.5 million
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SG&A expenses declined sequentially to $27.7 million
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Operating income increased sequentially to 18.7 percent
-
Diluted earnings per share increased sequentially to $0.49
Business Highlights
-
Broad-based revenue was $72.4 million, reflecting a record quarter in
microcontrollers and wireless offset by lower than expected revenue
for timing due to general weakness in the telecom infrastructure
market.
-
Broadcast outperformed expectations in the fourth quarter with revenue
of $49.6 million.
-
Access grew slightly in the fourth quarter, exceeding expectations,
with revenue of $24.3 million.
-
During the fourth quarter, the company announced several important
mixed-signal products for Internet of Things applications, including
the energy-friendly EFM32™ Zero Gecko MCU family, the ultra-low-power
Si106x/8x wireless MCU family, and the next-generation Si701x/2x
relative humidity and temperature sensor family.
"We are very pleased with our performance in the fourth quarter, as our
microcontroller and wireless products delivered another record revenue
quarter, and we experienced better than expected revenue from Broadcast
and Access products," said Tyson Tuttle, CEO of Silicon Labs. "Revenue
for 2013 was a record for the company, and we believe we are entering
2014 well positioned in growth markets such as the Internet of Things,
smart energy and Internet infrastructure."
Business Outlook
The company expects revenue in the first quarter to be in the range of
$142 million to $146 million. The company expects first quarter earnings
per share to be between $0.14 and $0.18 on a GAAP basis and between
$0.40 and $0.44 on a non-GAAP basis.
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 39717387. The replay will be available through March 8.
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 and the Silicon
Labs logo are trademarks of Silicon Laboratories Inc. All other product
names noted herein may be trademarks of their respective holders.
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Silicon Laboratories Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
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Three Months Ended
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Year Ended
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December 28,
2013
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December 29,
2012
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December 28,
2013
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December 29,
2012
|
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Revenues
|
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$
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146,236
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$
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152,461
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|
|
$
|
580,087
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|
$
|
563,294
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Cost of revenues
|
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57,638
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|
|
58,835
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|
|
|
227,183
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|
|
|
225,277
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Gross margin
|
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88,598
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|
|
93,626
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352,904
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|
338,017
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Operating expenses:
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Research and development
|
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42,168
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|
36,009
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157,799
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|
137,952
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Selling, general and administrative
|
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32,276
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|
|
|
32,315
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|
|
130,795
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|
|
|
114,390
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Operating expenses
|
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74,444
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68,324
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288,594
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252,342
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Operating income
|
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|
14,154
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25,302
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64,310
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|
|
|
85,675
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Other income (expense):
|
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Interest income
|
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237
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|
|
235
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|
853
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1,338
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Interest expense
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(807
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)
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(850
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)
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(3,293
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)
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(1,149
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)
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Other income (expense), net
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118
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(323
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)
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|
|
157
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|
|
484
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Income before income taxes
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|
13,702
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|
|
24,364
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|
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62,027
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|
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86,348
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Provision for income taxes
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3,060
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|
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5,669
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|
|
12,208
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22,800
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Net income
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$
|
10,642
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|
$
|
18,695
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$
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49,819
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$
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63,548
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Earnings per share:
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Basic
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$
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0.25
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$
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0.45
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$
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1.17
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$
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1.51
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Diluted
|
|
$
|
0.24
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|
|
$
|
0.44
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|
|
$
|
1.14
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$
|
1.47
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Weighted-average common shares outstanding:
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Basic
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42,972
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41,705
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42,715
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42,136
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Diluted
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43,847
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42,641
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43,537
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43,106
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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
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Non-GAAP Income
Statement Items
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Three Months Ended
December 28, 2013
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GAAP
Measure
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GAAP
Percent of
Revenue
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Stock
Compensation
Expense
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Intangible
Asset
Amortization
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Termination
Costs
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Acquisition
Related
Items
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Non-
GAAP
Measure
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Non-
GAAP
Percent of
Revenue
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Revenues
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$
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146,236
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Gross margin
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88,598
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60.6
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%
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$
|
166
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$
|
390
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|
$
|
--
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|
$
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400
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|
$
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89,554
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61.2
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%
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|
|
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|
|
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Research and
development
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42,168
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28.8
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%
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3,979
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|
3,217
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|
447
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--
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34,525
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23.6
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%
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Selling, general and
administrative
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32,276
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22.1
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%
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4,351
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729
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|
895
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(1,384
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)
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27,685
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18.9
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%
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Operating income
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14,154
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9.7
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%
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8,496
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|
4,336
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|
1,342
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(984
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)
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27,344
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18.7
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%
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Non-GAAP Diluted
Earnings Per Share
|
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Three Months Ended
December 28, 2013
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|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
Termination
Costs
|
|
Acquisition
Related
Items
|
|
Non-
GAAP
Measure
|
|
|
|
Net income
|
|
|
|
$
|
10,642
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|
|
$
|
7,685
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|
$
|
2,986
|
|
$
|
1,179
|
|
$
|
(1,096
|
)
|
|
$
|
21,396
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
43,847
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|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
43,847
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
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Diluted earnings per share
|
|
$
|
0.24
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$
|
0.49
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Unaudited Forward-Looking Statements Regarding Business Outlook
(In
thousands, except per share information)
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Business Outlook
|
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Three Months Ending
March 29, 2014
|
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High
|
|
Low
|
|
Estimated GAAP diluted earnings per share
|
|
$
|
0.18
|
|
$
|
0.14
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|
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Estimated non-GAAP charges
|
|
|
0.26
|
|
|
0.26
|
|
|
|
|
|
|
|
Estimated non-GAAP diluted earnings per share
|
|
$
|
0.44
|
|
$
|
0.40
|
|
|
|
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Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
|
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|
|
|
|
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|
|
December 28,
2013
|
|
December 29,
2012
|
|
Assets
|
|
|
|
|
|
Current assets:
|
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Cash and cash equivalents
|
|
$
|
95,800
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|
|
$
|
105,426
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Short-term investments
|
|
|
179,593
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|
|
|
176,565
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|
|
Accounts receivable, net of allowances for doubtful accounts of
$797 at December 28, 2013 and $670 at December 29, 2012
|
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|
72,124
|
|
|
|
78,023
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|
|
Inventories
|
|
|
45,271
|
|
|
|
49,579
|
|
|
Deferred income taxes
|
|
|
18,878
|
|
|
|
16,652
|
|
|
Prepaid expenses and other current assets
|
|
|
47,651
|
|
|
|
41,437
|
|
|
Total current assets
|
|
|
459,317
|
|
|
|
467,682
|
|
|
Long-term investments
|
|
|
10,632
|
|
|
|
11,369
|
|
|
Property and equipment, net
|
|
|
132,445
|
|
|
|
135,271
|
|
|
Goodwill
|
|
|
228,781
|
|
|
|
130,265
|
|
|
Other intangible assets, net
|
|
|
131,593
|
|
|
|
90,750
|
|
|
Other assets, net
|
|
|
28,382
|
|
|
|
36,629
|
|
|
Total assets
|
|
$
|
991,150
|
|
|
$
|
871,966
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
22,126
|
|
|
$
|
29,622
|
|
|
Current portion of long-term debt
|
|
|
7,500
|
|
|
|
5,000
|
|
|
Accrued expenses
|
|
|
45,975
|
|
|
|
40,410
|
|
|
Deferred income on shipments to distributors
|
|
|
30,853
|
|
|
|
30,259
|
|
|
Income taxes
|
|
|
2,693
|
|
|
|
1,087
|
|
|
Total current liabilities
|
|
|
109,147
|
|
|
|
106,378
|
|
|
Long-term debt
|
|
|
87,500
|
|
|
|
95,000
|
|
|
Other non-current liabilities
|
|
|
55,941
|
|
|
|
20,615
|
|
|
Total liabilities
|
|
|
252,588
|
|
|
|
221,993
|
|
|
Commitments and contingencies
|
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|
Stockholders' equity:
|
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Preferred stock - $0.0001 par value; 10,000 shares authorized; no
shares issued and outstanding
|
|
|
--
|
|
|
|
--
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|
Common stock - $0.0001 par value; 250,000 shares authorized;
42,779 and 41,879 shares issued and outstanding at
December 28, 2013 and December 29, 2012, respectively
|
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|
4
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
48,630
|
|
|
|
10,122
|
|
|
Retained earnings
|
|
|
690,612
|
|
|
|
640,793
|
|
|
Accumulated other comprehensive loss
|
|
|
(684
|
)
|
|
|
(946
|
)
|
|
Total stockholders' equity
|
|
|
738,562
|
|
|
|
649,973
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
991,150
|
|
|
$
|
871,966
|
|
|
|
|
|
|
|
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|
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Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 28,
2013
|
|
December 29,
2012
|
|
Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
49,819
|
|
|
$
|
63,548
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
13,491
|
|
|
|
13,621
|
|
|
Net gain on the purchase of property and equipment
|
|
|
--
|
|
|
|
(8,457
|
)
|
|
Amortization of other intangible assets and other assets
|
|
|
15,911
|
|
|
|
14,154
|
|
|
Impairment of long-lived assets
|
|
|
--
|
|
|
|
708
|
|
|
Stock-based compensation expense
|
|
|
30,800
|
|
|
|
31,176
|
|
|
Income tax benefit (detriment) from employee stock-based awards
|
|
|
(606
|
)
|
|
|
1,827
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
(290
|
)
|
|
|
(1,294
|
)
|
|
Deferred income taxes
|
|
|
3,319
|
|
|
|
4,725
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
8,972
|
|
|
|
(20,743
|
)
|
|
Inventories
|
|
|
5,588
|
|
|
|
(13,056
|
)
|
|
Prepaid expenses and other assets
|
|
|
(2,514
|
)
|
|
|
10,629
|
|
|
Accounts payable
|
|
|
(3,979
|
)
|
|
|
7,217
|
|
|
Accrued expenses
|
|
|
(3,169
|
)
|
|
|
(3,812
|
)
|
|
Deferred income on shipments to distributors
|
|
|
(2,381
|
)
|
|
|
4,623
|
|
|
Income taxes
|
|
|
5,189
|
|
|
|
(7,816
|
)
|
|
Net cash provided by operating activities
|
|
|
120,150
|
|
|
|
97,050
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
Purchases of available-for-sale investments
|
|
|
(213,883
|
)
|
|
|
(192,450
|
)
|
|
Proceeds from sales and maturities of available-for-sale investments
|
|
|
210,824
|
|
|
|
235,517
|
|
|
Purchases of property and equipment
|
|
|
(10,472
|
)
|
|
|
(102,043
|
)
|
|
Purchases of other assets
|
|
|
(5,939
|
)
|
|
|
(8,508
|
)
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
(86,441
|
)
|
|
|
(71,852
|
)
|
|
Net cash used in investing activities
|
|
|
(105,911
|
)
|
|
|
(139,336
|
)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
Proceeds from issuance of common stock, net of shares withheld for
taxes
|
|
|
15,301
|
|
|
|
15,148
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
290
|
|
|
|
1,294
|
|
|
Repurchases of common stock
|
|
|
(26,022
|
)
|
|
|
(62,019
|
)
|
|
Proceeds from issuance of long-term debt, net
|
|
|
--
|
|
|
|
98,325
|
|
|
Payments on debt
|
|
|
(13,434
|
)
|
|
|
--
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(23,865
|
)
|
|
|
52,748
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(9,626
|
)
|
|
|
10,462
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
105,426
|
|
|
|
94,964
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
95,800
|
|
|
$
|
105,426
|
|
Silicon Labs
Deborah Stapleton, +1-650-470-4200
Deborah.Stapleton@silabs.com
Source: Silicon Laboratories Inc.
News Provided by Acquire Media