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): January 25, 2012
SILICON LABORATORIES INC.
(Exact Name of Registrant as Specified in Charter)
|
Delaware |
|
000-29823 |
|
74-2793174 |
|
(State or Other Jurisdiction |
|
(Commission File Number) |
|
(IRS Employer |
|
of Incorporation) |
|
|
|
Identification No.) |
|
400 West Cesar Chavez, Austin, TX |
|
78701 |
|
(Address of Principal Executive Offices) |
|
(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):
o 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 January 25, 2012, Silicon Laboratories Inc. (“Silicon Laboratories”) issued a press release describing its results of operations for its fiscal quarter and year ended December 31, 2011. A copy of the press release is attached as Exhibit 99 to this report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
|
99 |
Press Release of Silicon Laboratories Inc. dated January 25, 2012 |
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.
|
|
|
SILICON LABORATORIES INC. |
|
|
|
|
|
|
|
|
|
January 25, 2012 |
|
/s/ Paul V. Walsh, Jr. |
|
|
|
|
|
Date |
|
Paul V. Walsh, Jr. |
EXHIBIT INDEX
|
Exhibit No. |
|
Description |
|
|
|
|
|
99 |
|
Press Release of Silicon Laboratories Inc. dated January 25, 2012 |
Exhibit 99
SILICON LABORATORIES RESULTS EXCEED EXPECTATIONS
—Strong Quarterly Performance and Better than Seasonal Outlook—
AUSTIN, Texas — Jan. 25, 2012 — Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported fourth quarter revenue of $126.7 million, a 13 percent increase compared to the same period last year. GAAP and non-GAAP earnings per share of $0.29 and $0.49, respectively, exceeded expectations and represented solid double-digit sequential growth.
Financial Highlights
Business trends were robust throughout the quarter, with new product cycles driving revenue upside. Solid operating performance also translated to better than anticipated profitability.
Fourth quarter revenue increased more than 6 percent sequentially to $126.7 million. GAAP gross margin was 60.9 percent. R&D investment increased to $34.7 million, and SG&A was flat at $27.3 million. Operating income improved meaningfully from the same period last year to 12 percent. GAAP net income was 10 percent of revenue for the quarter. Diluted GAAP earnings of 29 cents represented a 12 percent increase compared to the third quarter.
The following non-GAAP results exclude the impact of stock compensation expense and certain other one-time items. Gross margin remained stable at 61.2 percent. R&D investment increased to $29.6 million due primarily to increased tape out activity, and as planned, SG&A remained flat at $22.5 million. Operating income improved to 20 percent of revenue, and net income improved to 17 percent of revenue. The solid operational performance resulted in diluted earnings per share of 49 cents, an 11 percent sequential increase, and well above guidance. The company ended the quarter with $325 million in cash, cash equivalents and investments due to continued healthy cash flow from operations.
Reconciling charges are set forth in the financial measures table included below.
Business Highlights
Fourth quarter revenue upside was driven by new product cycles in video and touch controllers, as well as better than anticipated demand for SLIC devices and many of the company’s Broad-based products.
The company’s video products exceeded the full year revenue target and exited the year positioned to further expand its strong market share position as customers ramp 2012 TV models into production. iDTVs featuring the company’s latest generation products were on display at the Consumer Electronics Show, demonstrating the form factor and performance advantages available when using Silicon Labs silicon tuner technology.
Similarly, the company’s touch controllers designed into mobile handsets exceeded initial forecasts, shipping throughout Europe, China and India during the fourth quarter. This rapid ramp in a major mobile handset platform was strong validation for the company’s touch technology and a good foundation for expanding market share in 2012.
The company’s non-consumer products also delivered solid performance in the quarter, including MCUs, which remained stable, and isolation and wireless products which grew significantly as new customer programs ramped. Timing products delivered excellent year over year growth again at 30 percent, but slowed in the fourth quarter in conjunction with the near-term weakness in the telecom equipment market.
“We enjoyed a sustained improvement in the strength of bookings as we ended 2011. And with our recent results demonstrating significant share gains, we have a lot to look forward to in 2012,” said Necip Sayiner, president and CEO of Silicon Laboratories. “We believe we have both the diversity to weather any lingering macro weakness and the product cycles to get us back into a mode of consistently outperforming our peers.”
The company expects revenue for the first quarter to be in the range of $120 million to $125 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 (855) 859-2056 or +1 (404) 537-3406 (international) and by entering 42298945. The replay will be available through February 8th.
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 Income
(In thousands, except per share data)
(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
| ||||||||
|
|
|
December 31, |
|
January 1, |
|
December 31, |
|
January 1, |
| ||||
|
|
|
2011 |
|
2011 |
|
2011 |
|
2011 |
| ||||
|
Revenues |
|
$ |
126,692 |
|
$ |
111,891 |
|
$ |
491,625 |
|
$ |
493,341 |
|
|
Cost of revenues |
|
49,513 |
|
40,800 |
|
193,179 |
|
169,097 |
| ||||
|
Gross margin |
|
77,179 |
|
71,091 |
|
298,446 |
|
324,244 |
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
Research and development |
|
34,705 |
|
32,621 |
|
135,953 |
|
123,821 |
| ||||
|
Selling, general and administrative |
|
27,251 |
|
27,456 |
|
112,419 |
|
113,752 |
| ||||
|
Operating expenses |
|
61,956 |
|
60,077 |
|
248,372 |
|
237,573 |
| ||||
|
Operating income |
|
15,223 |
|
11,014 |
|
50,074 |
|
86,671 |
| ||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
427 |
|
479 |
|
1,859 |
|
2,318 |
| ||||
|
Interest expense |
|
(23 |
) |
(11 |
) |
(37 |
) |
(77 |
) | ||||
|
Other income (expense), net |
|
152 |
|
24 |
|
444 |
|
(1,253 |
) | ||||
|
Income before income taxes |
|
15,779 |
|
11,506 |
|
52,340 |
|
87,659 |
| ||||
|
Provision (benefit) for income taxes |
|
2,974 |
|
(1,377 |
) |
16,868 |
|
14,417 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income |
|
$ |
12,805 |
|
$ |
12,883 |
|
$ |
35,472 |
|
$ |
73,242 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Earnings per share: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
$ |
0.31 |
|
$ |
0.29 |
|
$ |
0.82 |
|
$ |
1.63 |
|
|
Diluted |
|
$ |
0.29 |
|
$ |
0.28 |
|
$ |
0.79 |
|
$ |
1.57 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
41,979 |
|
43,834 |
|
43,421 |
|
44,845 |
| ||||
|
Diluted |
|
43,410 |
|
45,658 |
|
44,832 |
|
46,742 |
| ||||
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
|
|
|
Three Months Ended |
| |||||||||||||||||
|
Non-GAAP Income |
|
GAAP |
|
GAAP |
|
Stock |
|
Acquisition |
|
Termination |
|
Non- |
|
Non- |
| |||||
|
Revenues |
|
$ |
126,692 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Gross margin |
|
77,179 |
|
60.9 |
% |
$ |
304 |
|
$ |
— |
|
$ |
— |
|
$ |
77,483 |
|
61.2 |
% | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Research and development |
|
34,705 |
|
27.4 |
% |
3,588 |
|
— |
|
1,553 |
|
29,564 |
|
23.3 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Selling, general and administrative |
|
27,251 |
|
21.5 |
% |
5,000 |
|
(560 |
) |
345 |
|
22,466 |
|
17.7 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating income |
|
15,223 |
|
12.0 |
% |
8,892 |
|
(560 |
) |
1,898 |
|
25,453 |
|
20.1 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net income |
|
12,805 |
|
10.1 |
% |
7,629 |
|
(560 |
) |
1,510 |
|
21,384 |
|
16.9 |
% | |||||
|
|
|
Three Months Ended |
|
|
| |||||||||||||
|
Non-GAAP Diluted |
|
GAAP |
|
Stock |
|
Acquisition |
|
Termination |
|
Non- |
|
|
| |||||
|
Net income |
|
$ |
12,805 |
|
$ |
7,629 |
|
$ |
(560 |
) |
$ |
1,510 |
|
$ |
21,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted shares outstanding |
|
43,410 |
|
|
|
|
|
|
|
43,410 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted earnings per share |
|
$ |
0.29 |
|
|
|
|
|
|
|
$ |
0.49 |
|
|
| |||
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
|
|
|
December 31, |
|
January 1, |
| ||
|
Assets |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
94,964 |
|
$ |
138,567 |
|
|
Short-term investments |
|
212,526 |
|
227,295 |
| ||
|
Accounts receivable, net of allowance for doubtful accounts of $725 at December 31, 2011 and $772 at January 1, 2011 |
|
55,351 |
|
45,030 |
| ||
|
Inventories |
|
34,778 |
|
39,450 |
| ||
|
Deferred income taxes |
|
11,563 |
|
9,140 |
| ||
|
Prepaid expenses and other current assets |
|
43,867 |
|
34,447 |
| ||
|
Total current assets |
|
453,049 |
|
493,929 |
| ||
|
Long-term investments |
|
17,477 |
|
17,500 |
| ||
|
Property and equipment, net |
|
25,141 |
|
29,945 |
| ||
|
Goodwill |
|
115,489 |
|
112,296 |
| ||
|
Other intangible assets, net |
|
60,005 |
|
53,242 |
| ||
|
Other assets, net |
|
34,830 |
|
20,746 |
| ||
|
Total assets |
|
$ |
705,991 |
|
$ |
727,658 |
|
|
|
|
|
|
|
| ||
|
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
26,354 |
|
$ |
24,433 |
|
|
Accrued expenses |
|
30,857 |
|
25,604 |
| ||
|
Deferred income on shipments to distributors |
|
24,962 |
|
26,127 |
| ||
|
Income taxes |
|
665 |
|
3,692 |
| ||
|
Total current liabilities |
|
82,838 |
|
79,856 |
| ||
|
Long-term obligations and other liabilities |
|
24,214 |
|
22,372 |
| ||
|
Total liabilities |
|
107,052 |
|
102,228 |
| ||
|
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; 42,068 and 43,933 shares issued and outstanding at December 31, 2011 and January 1, 2011, respectively |
|
4 |
|
4 |
| ||
|
Additional paid-in capital |
|
14,749 |
|
49,947 |
| ||
|
Retained earnings |
|
586,653 |
|
579,127 |
| ||
|
Accumulated other comprehensive loss |
|
(2,467 |
) |
(3,648 |
) | ||
|
Total stockholders’ equity |
|
598,939 |
|
625,430 |
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
705,991 |
|
$ |
727,658 |
|
Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
Year Ended |
| ||||
|
|
|
December 31, |
|
January 1, |
| ||
|
Operating Activities |
|
|
|
|
| ||
|
Net income |
|
$ |
35,472 |
|
$ |
73,242 |
|
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation of property and equipment |
|
13,570 |
|
11,797 |
| ||
|
Amortization of other intangible assets and other assets |
|
11,030 |
|
7,494 |
| ||
|
Impairment of long-lived assets |
|
1,322 |
|
— |
| ||
|
Stock-based compensation expense |
|
36,115 |
|
40,324 |
| ||
|
Income tax benefit from employee stock-based awards |
|
2,814 |
|
3,295 |
| ||
|
Excess income tax benefit from employee stock-based awards |
|
(2,404 |
) |
(2,412 |
) | ||
|
Deferred income taxes |
|
(445 |
) |
(552 |
) | ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
(8,562 |
) |
11,342 |
| ||
|
Inventories |
|
5,334 |
|
(7,811 |
) | ||
|
Prepaid expenses and other assets |
|
(5,948 |
) |
(5,300 |
) | ||
|
Accounts payable |
|
(2,176 |
) |
(777 |
) | ||
|
Accrued expenses |
|
(1,320 |
) |
(2,590 |
) | ||
|
Deferred income on shipments to distributors |
|
(1,915 |
) |
(2,343 |
) | ||
|
Income taxes |
|
5,855 |
|
(7,774 |
) | ||
|
Net cash provided by operating activities |
|
88,742 |
|
117,935 |
| ||
|
Investing Activities |
|
|
|
|
| ||
|
Purchases of available-for-sale investments |
|
(178,676 |
) |
(357,777 |
) | ||
|
Proceeds from sales and maturities of marketable securities |
|
193,474 |
|
352,779 |
| ||
|
Purchases of property and equipment |
|
(8,690 |
) |
(13,850 |
) | ||
|
Purchases of other assets |
|
(4,018 |
) |
(8,372 |
) | ||
|
Acquisitions of businesses, net of cash acquired |
|
(27,262 |
) |
(28,021 |
) | ||
|
Net cash used in investing activities |
|
(25,172 |
) |
(55,241 |
) | ||
|
Financing Activities |
|
|
|
|
| ||
|
Proceeds from issuance of common stock, net of shares withheld for taxes |
|
7,660 |
|
18,055 |
| ||
|
Excess income tax benefit from employee stock-based awards |
|
2,404 |
|
2,412 |
| ||
|
Repurchases of common stock |
|
(110,063 |
) |
(140,331 |
) | ||
|
Payments on debt |
|
(7,174 |
) |
— |
| ||
|
Net cash used in financing activities |
|
(107,173 |
) |
(119,864 |
) | ||
|
|
|
|
|
|
| ||
|
Decrease in cash and cash equivalents |
|
(43,603 |
) |
(57,170 |
) | ||
|
Cash and cash equivalents at beginning of period |
|
138,567 |
|
195,737 |
| ||
|
Cash and cash equivalents at end of period |
|
$ |
94,964 |
|
$ |
138,567 |
|
# # #