UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 27, 2011
SILICON LABORATORIES INC.
(Exact Name of Registrant as Specified in Charter)
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Delaware |
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000-29823 |
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74-2793174 |
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(State or Other Jurisdiction |
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(Commission File Number) |
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(IRS Employer |
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of Incorporation) |
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Identification No.) |
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400 West Cesar Chavez, Austin, TX |
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78701 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (512) 416-8500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On April 27, 2011, Silicon Laboratories Inc. (“Silicon Laboratories”) issued a press release describing its results of operations for its fiscal quarter ended April 2, 2011. A copy of the press release is attached as Exhibit 99 to this report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
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99 |
Press Release of Silicon Laboratories Inc. dated April 27, 2011 |
Use of Non-GAAP Financial Information
From time to time, Silicon Laboratories provides certain non-GAAP financial measures as additional information relating to its operating results. The non-GAAP financial measurements provided in the press release furnished herewith do not replace the presentation of Silicon Laboratories’ GAAP financial results. These additional measurements merely provide supplemental information to assist investors in analyzing Silicon Laboratories’ financial position and results of operations; however, these measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. Silicon Laboratories has chosen to provide this information to investors because it believes that such supplemental information enables them to perform meaningful comparisons of past, present and future operating results, and as a means to highlight the results of core ongoing operations.
Pursuant to the requirements of Regulation G, we have provided in the press release furnished with this report a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. The information contained therein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Silicon Laboratories, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SILICON LABORATORIES INC. |
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April 27, 2011 |
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/s/ Paul V. Walsh, Jr. |
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Date |
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Paul V. Walsh, Jr. |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99 |
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Press Release of Silicon Laboratories Inc. dated April 27, 2011 |
Exhibit 99
SILICON LABORATORIES REPORTS FIRST QUARTER RESULTS
—Strong Growth from Broadcast and Broad-based Products—
AUSTIN, Texas — April 27, 2011 — Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported a seven percent sequential increase in first quarter revenue to $119.6 million due to strength in its broadcast and broad-based product lines.
Financial Highlights
Revenue returned to growth in the first quarter, countering typical seasonal weakness in consumer markets with strong new product cycles.
During the quarter, the company completed the acquisition of SpectraLinear, a timing IC provider, and GAAP results include approximately $11.7 million in charges related to the acquisition, as well as typical non-cash stock compensation charges. GAAP gross margin was impacted by product mix as well as $1.1 million in acquisition charges, resulting in 60.3 percent gross margin for the first quarter. Operating expenses included $5.1 million in acquisition-related charges and ended the quarter at $35.4 million in R&D investment and $31.9 million in SG&A expense. This resulted in a fully diluted GAAP loss of four cents per share.
The following non-GAAP results exclude the impact of acquisition-related charges and stock compensation expense. Non-GAAP gross margin was 61.6 percent for the quarter, down sequentially as anticipated due to product mix. Operating expenses increased only modestly, with R&D at $29.7 million and SG&A about flat at $23.2 million. Fully diluted non-GAAP earnings per share were better than expected at $0.40. The reconciling charges are set forth in the financial measures table included below.
Business Highlights
The company’s better than seasonal performance was driven by an aggressive ramp of its innovative silicon TV tuner into iDTVs by five top TV makers during the quarter. The company’s timing products also achieved record revenue again which, when combined with strong growth in MCU products, enabled high single-digit sequential growth in the broad-based product category. Record design wins and expanding portfolios in both timing and MCUs created market share momentum at both existing and new customers.
“The improving complexion of our revenue base, and the momentum we currently have with our bookings and design wins have so far outweighed the industry-wide concerns that have developed following the tragedy in Japan,” said Necip Sayiner, president and CEO of Silicon Laboratories. “We continue to have confidence in the annual growth targets we set in January and view the Q1 results as strong progress towards those goals.”
The company guided revenue for the second quarter in the range of $124 to $130 million.
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 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 (800) 642-1687 or +1 (706) 645-9291 (international) and by entering 59263865. The replay will be available through May 11, 2011.
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.
CONTACT: Silicon Laboratories Inc., Shannon Pleasant, (512) 464 9254, shannon.pleasant@silabs.com
Silicon Laboratories Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
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Three Months Ended |
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April 2, |
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April 3, |
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Revenues |
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$ |
119,636 |
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$ |
126,719 |
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Cost of revenues |
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47,478 |
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43,129 |
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Gross margin |
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72,158 |
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83,590 |
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Operating expenses: |
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Research and development |
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35,359 |
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29,922 |
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Selling, general and administrative |
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31,860 |
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28,003 |
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Operating expenses |
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67,219 |
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57,925 |
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Operating income |
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4,939 |
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25,665 |
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Other income (expense): |
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Interest income |
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571 |
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666 |
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Interest expense |
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(5 |
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(23 |
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Other income (expense), net |
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209 |
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(297 |
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Income before income taxes |
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5,714 |
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26,011 |
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Provision for income taxes |
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7,674 |
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4,932 |
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Net income (loss) |
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$ |
(1,960 |
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$ |
21,079 |
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Earnings (loss) per share: |
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Basic |
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$ |
(0.04 |
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$ |
0.46 |
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Diluted |
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$ |
(0.04 |
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$ |
0.44 |
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Weighted-average common shares outstanding: |
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Basic |
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44,269 |
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45,816 |
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Diluted |
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44,269 |
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47,926 |
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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
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Three Months Ended |
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Non-GAAP Income Statement |
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GAAP |
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GAAP |
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Stock |
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Acquisition |
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Non-GAAP |
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Non-GAAP |
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Revenues |
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$ |
119,636 |
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Gross margin |
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72,158 |
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60.3 |
% |
$ |
338 |
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$ |
1,149 |
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$ |
73,645 |
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61.6 |
% | |
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Research and development |
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35,359 |
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29.6 |
% |
3,994 |
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1,618 |
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29,747 |
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24.9 |
% | ||||
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Selling, general and administrative |
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31,860 |
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26.6 |
% |
5,141 |
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3,526 |
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23,193 |
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19.4 |
% | ||||
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Operating income |
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4,939 |
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4.1 |
% |
9,473 |
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6,293 |
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20,705 |
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17.3 |
% | ||||
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Provision for income taxes |
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7,674 |
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1,027 |
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(5,425 |
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3,276 |
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Three Months Ended |
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Non-GAAP Diluted Earnings |
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GAAP |
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Stock |
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Acquisition |
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Non-GAAP |
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Net income (loss) |
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$ |
(1,960 |
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$ |
8,446 |
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$ |
11,718 |
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$ |
18,204 |
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GAAP |
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Dilutive Securities Excluded |
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Non-GAAP |
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Diluted shares outstanding |
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44,269 |
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1,776 |
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46,045 |
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Diluted earnings (loss) per share |
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$ |
(0.04 |
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$ |
0.40 |
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Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
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April 2, |
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January 1, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
118,496 |
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$ |
138,567 |
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Short-term investments |
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203,785 |
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227,295 |
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Accounts receivable, net of allowance for doubtful accounts of $724 at April 2, 2011 and $772 at January 1, 2011 |
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58,493 |
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45,030 |
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Inventories |
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41,057 |
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39,450 |
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Deferred income taxes |
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9,461 |
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9,140 |
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Prepaid expenses and other current assets |
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39,922 |
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34,447 |
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Total current assets |
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471,214 |
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493,929 |
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Long-term investments |
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16,965 |
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17,500 |
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Property and equipment, net |
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29,464 |
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29,945 |
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Goodwill |
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117,215 |
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112,296 |
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Other intangible assets, net |
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68,836 |
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53,242 |
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Other assets, net |
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29,816 |
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20,746 |
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Total assets |
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$ |
733,510 |
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$ |
727,658 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
20,371 |
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$ |
24,433 |
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Accrued expenses |
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26,492 |
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25,604 |
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Deferred income on shipments to distributors |
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28,896 |
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26,127 |
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Income taxes |
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3,922 |
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3,692 |
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Total current liabilities |
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79,681 |
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79,856 |
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Long-term obligations and other liabilities |
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23,540 |
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22,372 |
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Total liabilities |
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103,221 |
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102,228 |
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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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— |
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— |
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Common stock—$0.0001 par value; 250,000 shares authorized; 44,513 and 43,933 shares issued and outstanding at April 2, 2011 and January 1, 2011, respectively |
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4 |
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4 |
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Additional paid-in capital |
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56,534 |
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49,947 |
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Retained earnings |
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577,167 |
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579,127 |
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Accumulated other comprehensive loss |
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(3,416 |
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(3,648 |
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Total stockholders’ equity |
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630,289 |
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625,430 |
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Total liabilities and stockholders’ equity |
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$ |
733,510 |
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$ |
727,658 |
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Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
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Three Months Ended |
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April 2, |
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April 3, |
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Operating Activities |
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Net income (loss) |
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$ |
(1,960 |
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$ |
21,079 |
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Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: |
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Depreciation of property and equipment |
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3,253 |
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2,879 |
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Amortization of other intangible assets and other assets |
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3,057 |
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1,849 |
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Stock-based compensation expense |
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9,473 |
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10,256 |
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Income tax benefit from employee stock-based awards |
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1,184 |
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1,286 |
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Excess income tax benefit from employee stock-based awards |
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(1,142 |
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(800 |
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Deferred income taxes |
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1,366 |
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616 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(11,704 |
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(804 |
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Inventories |
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(759 |
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3,832 |
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Prepaid expenses and other assets |
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(4,499 |
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(973 |
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Accounts payable |
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(4,787 |
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1,046 |
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Accrued expenses |
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(1,634 |
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(1,110 |
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Deferred income on shipments to distributors |
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2,293 |
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(50 |
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Income taxes |
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3,233 |
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(7,991 |
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Net cash provided by (used in) operating activities |
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(2,626 |
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31,115 |
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Investing Activities |
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Purchases of available-for-sale investments |
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(31,492 |
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(121,357 |
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Proceeds from sales and maturities of marketable securities |
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55,092 |
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67,697 |
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Purchases of property and equipment |
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(2,697 |
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(1,747 |
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Purchases of other assets |
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(584 |
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(3,436 |
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Acquisition of business, net of cash acquired |
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(27,546 |
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— |
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Net cash used in investing activities |
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(7,227 |
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(58,843 |
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Financing Activities |
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Proceeds from issuance of common stock, net of shares withheld for taxes |
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(3,580 |
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7,483 |
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Excess income tax benefit from employee stock-based awards |
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1,142 |
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800 |
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Repurchases of common stock |
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(606 |
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(24,092 |
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Payments on debt |
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(7,174 |
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— |
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Net cash used in financing activities |
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(10,218 |
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(15,809 |
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Decrease in cash and cash equivalents |
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(20,071 |
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(43,537 |
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Cash and cash equivalents at beginning of period |
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138,567 |
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195,737 |
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Cash and cash equivalents at end of period |
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$ |
118,496 |
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$ |
152,200 |
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# # #