AUSTIN, Texas, April 24, 2019 /PRNewswire/ -- Silicon
Labs (NASDAQ: SLAB), a leading provider of silicon, software
and solutions for a smarter, more connected world, today reported
financial results for its first quarter ended March 30, 2019. Revenue was at the midpoint of
guidance at $188.1 million, down from
$215.5 million in the fourth quarter,
with gross margin, opex and earnings per share (EPS) exceeding
expectations. First quarter GAAP and non-GAAP diluted EPS were
$0.12 and $0.59, respectively.
"We exited 2018 with strong design win momentum and leading
positions in key secular growth markets," said Tyson Tuttle, CEO of Silicon Labs. "Despite
macro turbulence, Q1 bookings were robust, signaling a Q2 rebound.
We believe we are well-positioned to outperform the market."
First Quarter Financial Highlights
- IoT revenue declined to $106
million, down 11% sequentially and up 3% year-on-year.
- Infrastructure revenue was about flat sequentially at
$46 million, down 7%
year-on-year.
- Broadcast revenue declined to $26
million, down 25% sequentially and 27% year-on-year.
- Access revenue declined to $10
million, down 36% sequentially and 43% year-on-year.
On a GAAP
basis:
- GAAP gross margin was 61.6%.
- GAAP R&D expenses were $62
million.
- GAAP SG&A expenses were $49
million.
- GAAP operating income as a percentage of revenue was 2.7%.
- GAAP diluted earnings per share were $0.12.
On a non-GAAP basis, excluding the impact of stock compensation,
amortization of acquired intangible assets, non-cash interest
expense on convertible notes, and certain other items as set forth
in the reconciliation tables below:
- Non-GAAP gross margin was 61.8%.
- Non-GAAP R&D expenses were $48
million.
- Non-GAAP SG&A expenses were $40
million.
- Non-GAAP operating income as a percentage of revenue was
14.9%.
- Non-GAAP diluted earnings per share were $0.59.
Product Results
- Launched the new Si89xx family of isolated ICs delivering
precise current and voltage measurement with ultra-low temperature
drift for industrial, green energy and EV/HEV applications.
- Introduced a comprehensive portfolio of clock and buffer timing
solutions providing best-in-class jitter performance to meet the
new PCI Express Gen 5 specification.
- Released the first SoC products in the next-generation Wireless
Gecko Series 2 portfolio, delivering the industry's most versatile
and scalable IoT connectivity platform designed to make IoT
products more powerful, efficient and reliable.
Business Outlook
The company expects second quarter revenue to be in the range
of $202 to $212 million, reflecting sequential growth in
IoT, Broadcast and Access, with Infrastructure flat, and estimates
the following:
On a GAAP basis:
- GAAP gross margin at approximately 60.0%.
- GAAP operating expenses at approximately $112.5 million.
- GAAP effective tax rate of 5.0%.
- GAAP diluted earnings per share between $0.16 and $0.26.
On a non-GAAP basis, and excluding the impact of stock
compensation, amortization of acquired intangible assets, non-cash
interest expense on convertible notes, and certain other items as
set forth in the reconciliation tables below:
- Non-GAAP gross margin at approximately 60.5%.
- Non-GAAP operating expenses at approximately $89.0 million.
- Non-GAAP effective tax rate at 12.0%.
- Non-GAAP diluted earnings per share between $0.70 and $0.80.
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 on Silicon Labs'
website (www.silabs.com) under Investor Relations. A replay will be
available after the call at the same website listed above or by
calling 1 (877) 344-7529 (US) or (412) 317-0088 (International) and
entering access code 10130132. The replay will be available through
May 24, 2019.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon,
software and solutions for a smarter, more connected world. Our
award-winning technologies are shaping the future of the Internet
of Things, Internet infrastructure, industrial automation, consumer
and automotive markets. Our world-class engineering team creates
products focused on performance, energy savings, connectivity and
simplicity. 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 Silicon Labs' distributors,
manufacturers and subcontractors; inventory-related risks;
difficulties managing international activities; risks associated
with international activities (including trade barriers); risks
that Silicon Labs may not be able to manage strains associated with
its growth; credit risks associated with its 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; cyber-attacks against Silicon Labs'
products and its networks; 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 "S"
symbol, 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: Jalene Hoover, +1 (512)
428-1610, Jalene.Hoover@silabs.com
Silicon
Laboratories Inc.
|
Condensed
Consolidated Statements of Income
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
March 31,
2018
|
Revenues
|
$188,113
|
|
$205,384
|
Cost of
revenues
|
72,239
|
|
81,147
|
Gross
profit
|
115,874
|
|
124,237
|
Operating
expenses:
|
|
|
|
Research
and development
|
61,566
|
|
54,828
|
Selling,
general and administrative
|
49,216
|
|
45,694
|
Operating
expenses
|
110,782
|
|
100,522
|
Operating
income
|
5,092
|
|
23,715
|
Other income
(expense):
|
|
|
|
Interest
income and other, net
|
2,823
|
|
3,202
|
Interest
expense
|
(4,997)
|
|
(4,883)
|
Income before income
taxes
|
2,918
|
|
22,034
|
Provision (benefit)
for income taxes
|
(2,480)
|
|
(4,371)
|
Net income
|
$
5,398
|
|
$
26,405
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
0.12
|
|
$
0.61
|
Diluted
|
$
0.12
|
|
$
0.60
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
43,189
|
|
42,963
|
Diluted
|
43,716
|
|
43,918
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(In thousands,
except per share data)
|
|
Non-GAAP
Income
Statement Items
|
|
Three Months
Ended
March 30,
2019
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
Revenues
|
|
$188,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
115,874
|
|
61.6%
|
|
$
318
|
|
$
--
|
|
$116,192
|
|
61.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
61,566
|
|
32.7%
|
|
6,097
|
|
7,711
|
|
47,758
|
|
25.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative
|
|
49,216
|
|
26.2%
|
|
6,169
|
|
2,608
|
|
40,439
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
5,092
|
|
2.7%
|
|
12,584
|
|
10,319
|
|
27,995
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Earnings Per Share
|
|
Three Months
Ended
March 30,
2019
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Non-cash
Interest
Expense*
|
|
Income Tax
Adjustments
|
|
Non-GAAP
Measure
|
Net income
|
|
$
5,398
|
|
$12,584
|
|
$10,319
|
|
$2,886
|
|
$(5,340)
|
|
$25,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
43,716
|
|
|
|
|
|
|
|
|
|
43,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per
share
|
|
$
0.12
|
|
|
|
|
|
|
|
|
|
$
0.59
|
|
* Represents pre-tax
amounts
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
(In millions,
except per share data)
|
|
Business
Outlook
|
|
Three Months
Ending
June 29,
2019
|
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
Measure
|
Gross
margin
|
|
60.0%
|
|
0.50%
|
|
60.5%
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$112.5
|
|
$23.5
|
|
$89.0
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
5.0%
|
|
7.0%
|
|
12.0%
|
|
|
|
|
|
|
|
Diluted earnings per
share - low
|
|
$0.16
|
|
$0.54
|
|
$0.70
|
|
|
|
|
|
|
|
Diluted
earnings per share - high
|
|
$0.26
|
|
$0.54
|
|
$0.80
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
March 30,
2019
|
|
December 29,
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
231,144
|
|
$
197,043
|
Short-term investments
|
382,710
|
|
416,779
|
Accounts
receivable, net
|
69,871
|
|
73,194
|
Inventories
|
70,489
|
|
74,972
|
Prepaid
expenses and other current assets
|
60,274
|
|
64,650
|
Total current
assets
|
814,488
|
|
826,638
|
Property and
equipment, net
|
138,819
|
|
139,049
|
Goodwill
|
397,344
|
|
397,344
|
Other intangible
assets, net
|
160,512
|
|
170,832
|
Other assets,
net
|
110,764
|
|
90,491
|
Total
assets
|
$1,621,927
|
|
$1,624,354
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
41,544
|
|
$
41,171
|
Deferred
revenue and returns liability
|
23,971
|
|
22,494
|
Other
current liabilities
|
69,240
|
|
81,180
|
Total current
liabilities
|
134,755
|
|
144,845
|
Convertible
debt
|
358,093
|
|
354,771
|
Other non-current
liabilities
|
71,597
|
|
57,448
|
Total
liabilities
|
564,445
|
|
557,064
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock – $0.0001 par value; 10,000 shares authorized;
no
shares
issued
|
--
|
|
--
|
Common
stock – $0.0001 par value; 250,000 shares authorized;
43,341
and 43,088 shares issued and outstanding at
March 30,
2019 and December 29, 2018, respectively
|
4
|
|
4
|
Additional paid-in capital
|
90,988
|
|
107,517
|
Retained
earnings
|
966,741
|
|
961,343
|
Accumulated other comprehensive loss
|
(251)
|
|
(1,574)
|
Total stockholders'
equity
|
1,057,482
|
|
1,067,290
|
Total liabilities and
stockholders' equity
|
$1,621,927
|
|
$1,624,354
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
March 31,
2018
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$
5,398
|
|
$
26,405
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
Depreciation of property and equipment
|
4,137
|
|
3,704
|
|
Amortization of other intangible assets and other assets
|
10,320
|
|
6,427
|
|
Amortization of debt discount and debt issuance
costs
|
3,321
|
|
3,169
|
|
Stock-based compensation expense
|
12,584
|
|
12,192
|
|
Deferred
income taxes
|
(3,530)
|
|
(4,780)
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
3,323
|
|
(3,307)
|
|
Inventories
|
4,488
|
|
(3,368)
|
|
Prepaid expenses and
other assets
|
6,410
|
|
(17,169)
|
|
Accounts
payable
|
714
|
|
13,030
|
|
Other current
liabilities and income taxes
|
(15,996)
|
|
(9,643)
|
|
Deferred income,
deferred revenue and returns liability
|
1,477
|
|
(2,599)
|
|
Other non-current
liabilities
|
(631)
|
|
(1,849)
|
|
Net cash provided by
operating activities
|
32,015
|
|
22,212
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of
available-for-sale investments
|
(63,577)
|
|
(52,821)
|
|
Sales and maturities
of available-for-sale investments
|
99,068
|
|
128,975
|
|
Purchases of property
and equipment
|
(3,874)
|
|
(4,102)
|
|
Purchases of other
assets
|
(414)
|
|
(4,698)
|
|
Net cash provided by
investing activities
|
31,203
|
|
67,354
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Repurchases of common
stock
|
(15,004)
|
|
--
|
|
Payment of taxes
withheld for vested stock awards
|
(14,113)
|
|
(17,871)
|
|
Proceeds from the
issuance of common stock
|
--
|
|
1,211
|
|
Net cash used in
financing activities
|
(29,117)
|
|
(16,660)
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
34,101
|
|
72,906
|
|
Cash and cash
equivalents at beginning of period
|
197,043
|
|
269,366
|
|
Cash and cash
equivalents at end of period
|
$231,144
|
|
$342,272
|
|
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SOURCE Silicon Labs