AUSTIN, Texas, April 28, 2021 /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 April 3, 2021. Revenue exceeded the top end of
our initial guidance at $255.5
million, up from $242.9
million in the fourth quarter. First quarter GAAP and
non-GAAP diluted earnings per share (EPS) were $0.29 and $0.91,
respectively.
![(PRNewsfoto/Silicon Labs) (PRNewsfoto/Silicon Labs)](https://mma.prnewswire.com/media/457128/silicon_labs_Logo.jpg)
"Despite significant supply constraints, strong bookings and
durable demand momentum drove first quarter revenue to a new record
of $255.5 million led by record
revenue in IoT which grew 7% sequentially and 34% year-on-year,"
said Tyson Tuttle, CEO of Silicon
Labs. "We continue to lead the market in wireless connectivity for
a vast array of intelligent solutions. Last week's announcement to
become a pure-play leader of intelligent, wireless
connectivity for the IoT coupled with the global economic recovery
from the pandemic fuels our excitement to capitalize on the massive
growth opportunity in front of us."
First Quarter Financial Highlights
- IoT revenue increased to $158.2
million, up 7% sequentially and 34% year-on-year.
- Infrastructure and Automotive revenue increased to $97.3 million, up 2% sequentially and flat
year-on-year.
On a GAAP
basis:
- GAAP gross margin was 58.9%.
- GAAP R&D expenses were $76
million.
- GAAP SG&A expenses were $52
million.
- GAAP operating income as a percentage of revenue was 8.7%.
- GAAP diluted earnings per share was $0.29.
On a non-GAAP basis, excluding the impact of stock compensation,
amortization of acquired intangible assets, restructuring charges,
non-cash interest expense and other costs associated with
convertible notes, and certain other items as set forth in the
reconciliation tables below:
- Non-GAAP gross margin was 59.1%.
- Non-GAAP R&D expenses were $61
million.
- Non-GAAP SG&A expenses were $42
million.
- Non-GAAP operating income as a percentage of revenue was
18.7%.
- Non-GAAP diluted earnings per share were $0.91.
Product Highlights
- Announced the extension of its award-winning xG22 platform with
the launch of the EFM32PG22 (PG22), a new low-cost high performance
32-bit microcontrollers (MCUs). The PG22 has an industry-leading
combination of energy efficiency, performance and security ideally
suited for rapid development of consumer and industrial
applications with demanding size constraints and low power
operational requirements. The PG22 is targeted at high volume,
low-powered applications at a price point competitive with 8-bit
offerings and which is form factor & code compatible with its
wireless counterparts.
- Introduced new SmartClock™ features to its
family of AEC-Q100 qualified Si5332-AM clock generators expanding
the capabilities of the industry's broadest portfolio of
silicon-based automotive timing solutions. The new
SmartClock™ technology actively monitors reference
clocks to detect potential faults and provides built-in clock
redundancy.
- Introduced the new Hi823Hx Gate Driver Board, an all-in-one
isolation solution perfectly suited for the recently launched
Wolfspeed WolfPACK™ power module. Wolfspeed power modules are used
across numerous power applications, including EV chargers and motor
drives in the industrial and automotive markets. Featuring the
Si823Hx isolated gate driver and Si88xx digital isolator with
integrated dc-dc converter, the board delivers excellent
performance in a compact and cost-effective design, optimized for a
wide range of modules.
Business Highlights
- Entered into a definitive asset purchase agreement to sell the
Infrastructure & Automotive (I&A) business to Skyworks
Solutions, Inc. (NASDAQ: SWKS) for $2.75
billion in all-cash consideration. The transaction includes
Silicon Labs' power/isolation, timing and broadcast products,
intellectual property and associated employees. The company's
resulting focus on IoT comes at a time when the overall market and
Silicon Labs' growth opportunities are accelerating, as industry
projections anticipate a multi-year ramp in connected devices.
- Appointed Matt Johnson to
president. Johnson previously served as senior vice president and
general manager of Silicon Labs' IoT business unit.
- Appointed Daniel Cooley to chief
technology officer, reporting to Matt
Johnson. Cooley previously served as chief strategy officer
and replaces Alessandro Piovaccari, who stepped down as chief
technology officer but will continue to serve Silicon Labs as a
technical advisor.
- Appointed Dr. Manish Kothari to
the IoT leadership team. As vice president of Silicon Labs India,
Kothari will grow the wireless engineering talent, build scalable
infrastructure, and foster local partnerships in Hyderabad, the company's newest and
fastest-growing wireless development center.
- Officially became the world's first silicon innovator to
achieve PSA Certified's highest level of IoT hardware and software
security protection. PSA Certified – a respected security body for
IoT hardware, software and devices co-founded by ARM – awarded PSA
Certified Level 3 status to Silicon Labs' EFR32MG21, a wireless SoC
with Secure Vault.
- Announced a collaboration with Edge Impulse to enable rapid
development and deployment of machine learning (ML) on Silicon Labs
EFR32 wireless SoCs and EFM32 MCUs. Implementation of the Edge
Impulse tool enables complex motion detection, sound recognition
and image classification on low-power, memory-constrained, and
remote edge devices.
- Announced a collaboration with Yeelight on a new smart LED
light bulb to support Seamless Setup in the Google Home app. The
Yeelight Smart LED Bulb M2 multi-color light bulb is designed with
Silicon Labs' Bluetooth BG21 SoC, enabling reliable wireless
connectivity and allowing users to connect and control smart home
devices in the Google Home app without requiring other
applications.
- Collaborated with Allterco Robotics to introduce Shelly Motion, a next-generation motion sensor
with unrivaled battery life enabled by Silicon Labs' Wi-Fi IoT
solution. Shelly Motion is the first
product to combine Shelly's innovative home automation sensors with
the only industry-leading Wi-Fi solution designed to meet the
ultra-low power requirements of IoT sensors. Optimized with Silicon
Labs' Wi-Fi technology, Shelly
Motion is the most responsive, energy-efficient, and
easy-to-use smart home Wi-Fi motion sensor on the market
today.
Business Outlook
The company expects second quarter revenue to be in the range
of $262 to $272 million, with
IoT roughly flat to the first quarter, limited by supply, and
Infrastructure & Automotive up, and estimates the
following:
On a GAAP basis:
- GAAP gross margin between 57% and 58%
- GAAP operating expenses at approximately $130 million
- GAAP effective tax rate of 7%.
- GAAP diluted earnings per share between $0.28 and $0.38.
On a non-GAAP basis, excluding the impact of stock compensation,
amortization of acquired intangible assets, restructuring charges,
non-cash interest expense and other costs associated with
convertible notes, and certain other items as set forth in the
reconciliation tables below:
- Non-GAAP gross margin between 57% and 58%.
- Non-GAAP operating expenses at approximately $104 million.
- Non-GAAP effective tax rate at 11.5%.
- Non-GAAP diluted earnings per share between $0.88 and $0.98
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 10154019. The replay will be available through
May 5, 2021.
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: the occurrence of any event, change
or other circumstance that could give rise to the termination of
the Skyworks asset purchase agreement; the failure to satisfy any
of the conditions to the completion of such transaction; the effect
of such transaction on the ability of Silicon Labs to retain and
hire key personnel and maintain relationships with its customers,
suppliers, advertisers, partners and others with whom it does
business, or on its operating results and businesses generally;
risks associated with the disruption of management's attention from
ongoing business operations due to such transaction; the ability to
meet expectations regarding the timing and completion of such
transaction, including with respect to receipt of required
regulatory approvals; the impact of COVID-19 on the U.S. and global
economy, including the restrictions on travel and transportation
and other actions taken by governmental authorities and disruptions
to the business of our customers or our global supply chain that
have occurred or may occur in the future, the ongoing impact of
COVID-19 on our employees and our ability to provide services to
our customers and respond to their needs; 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; risks
associated with international activities (including trade barriers,
particularly with respect to China); intellectual property litigation
risks; risks associated with acquisitions and divestitures; product
liability risks; difficulties managing Silicon Labs' distributors,
manufacturers and subcontractors; dependence on a limited number of
products; absence of long-term commitments from customers;
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
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 or
pandemics, 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 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.
Silicon
Laboratories Inc.
|
Condensed
Consolidated Statements of Income
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
April 3,
2021
|
|
April 4,
2020
|
Revenues
|
$255,505
|
|
$214,877
|
Cost of
revenues
|
104,922
|
|
85,711
|
Gross
profit
|
150,583
|
|
129,166
|
Operating
expenses:
|
|
|
|
Research
and development
|
76,474
|
|
71,223
|
Selling,
general and administrative
|
51,950
|
|
53,996
|
Operating
expenses
|
128,424
|
|
125,219
|
Operating
income
|
22,159
|
|
3,947
|
Other income
(expense):
|
|
|
|
Interest
income and other, net
|
2,875
|
|
3,251
|
Interest
expense
|
(11,324)
|
|
(5,541)
|
Income before income
taxes
|
13,710
|
|
1,657
|
Provision (benefit)
for income taxes
|
201
|
|
(587)
|
Net income
|
$
13,509
|
|
$
2,244
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
0.31
|
|
$
0.05
|
Diluted
|
$
0.29
|
|
$
0.05
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
44,160
|
|
43,642
|
Diluted
|
45,832
|
|
44,388
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(In thousands,
except per share data)
|
|
Non-GAAP
Income
Statement Items
|
|
Three Months
Ended
April 3,
2021
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
Revenues
|
|
$255,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
150,583
|
|
58.9%
|
|
$
337
|
|
$
--
|
|
$150,920
|
|
59.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and
development
|
|
76,474
|
|
29.9%
|
|
7,024
|
|
8,390
|
|
61,060
|
|
23.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative
|
|
51,950
|
|
20.3%
|
|
6,466
|
|
3,315
|
|
42,169
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
22,159
|
|
8.7%
|
|
13,827
|
|
11,705
|
|
47,691
|
|
18.7%
|
Non-GAAP Earnings Per Share
|
|
Three Months
Ended April 3,
2021
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Investment
Fair Value
Adjustments*
|
|
Interest
Expense
Adjustments*
|
|
Income
Tax
Adjustments
|
|
Non- GAAP Measure
|
Net income
|
|
$13,509
|
|
$13,827
|
|
$11,705
|
|
$(1,801)
|
|
$9,307
|
|
$(4,856)
|
|
$41,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares
outstanding
|
|
45,832
|
|
|
|
|
|
|
|
|
|
|
|
45,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings
per
share
|
|
$
0.29
|
|
|
|
|
|
|
|
|
|
|
|
$
0.91
|
|
* Represents pre-tax
amounts
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
(In millions,
except per share data)
|
|
Business
Outlook
|
|
Three Months
Ending
July 3,
2021
|
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments*
|
|
Non-GAAP
Measure
|
Gross
margin
|
|
57-58%
|
|
0%
|
|
57-58%
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$130
|
|
$26
|
|
$104
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
7%
|
|
4.5%
|
|
11.5%
|
|
|
|
|
|
|
|
Diluted earnings per
share - low
|
|
$0.28
|
|
$0.60
|
|
$0.88
|
|
|
|
|
|
|
|
Diluted earnings per
share - high
|
|
$0.38
|
|
$0.60
|
|
$0.98
|
|
* Non-GAAP
adjustments include the following estimates: stock
compensation expense of $14 million, intangible asset amortization
of $12 million, interest expense adjustments of $5 million, and the
associated tax impact from the aforementioned items.
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
April 3,
2021
|
|
January 2,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
205,224
|
|
$
202,720
|
Short-term investments
|
367,708
|
|
521,963
|
Accounts
receivable, net
|
103,699
|
|
95,169
|
Inventories
|
79,244
|
|
66,662
|
Prepaid
expenses and other current assets
|
105,056
|
|
89,307
|
Total current
assets
|
860,931
|
|
975,821
|
Property and
equipment, net
|
141,000
|
|
139,439
|
Goodwill
|
631,932
|
|
631,932
|
Other intangible
assets, net
|
154,379
|
|
166,084
|
Other assets,
net
|
82,381
|
|
80,211
|
Total
assets
|
$1,870,623
|
|
$1,993,487
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
68,998
|
|
$
54,949
|
Current
portion of convertible debt, net
|
--
|
|
134,480
|
Deferred
revenue and returns liability
|
13,450
|
|
12,986
|
Other
current liabilities
|
68,351
|
|
82,083
|
Total current
liabilities
|
150,799
|
|
284,498
|
Convertible debt,
net
|
434,288
|
|
428,945
|
Other non-current
liabilities
|
78,557
|
|
80,203
|
Total
liabilities
|
663,644
|
|
793,646
|
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;
44,749 and 43,925
shares issued and outstanding at
April 3, 2021 and
January 2, 2021, respectively
|
4
|
|
4
|
Additional paid-in capital
|
199,576
|
|
204,359
|
Retained
earnings
|
1,007,173
|
|
993,664
|
Accumulated other comprehensive income
|
226
|
|
1,814
|
Total stockholders'
equity
|
1,206,979
|
|
1,199,841
|
Total liabilities and
stockholders' equity
|
$1,870,623
|
|
$1,993,487
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
April 3,
2021
|
|
April 4,
2020
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$
13,509
|
|
$
2,244
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation of property and equipment
|
4,529
|
|
4,183
|
|
Amortization of other intangible assets and other assets
|
11,705
|
|
9,827
|
|
Amortization of debt discount and debt issuance
costs
|
6,456
|
|
3,736
|
|
Loss on
extinguishment of convertible debt
|
3,370
|
|
--
|
|
Stock-based compensation expense
|
13,826
|
|
15,313
|
|
Deferred
income taxes
|
(3,197)
|
|
(2,364)
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(8,530)
|
|
1,542
|
|
Inventories
|
(12,626)
|
|
4,777
|
|
Prepaid expenses and
other assets
|
(13,621)
|
|
23,576
|
|
Accounts
payable
|
14,116
|
|
2,748
|
|
Other current
liabilities and income taxes
|
(13,429)
|
|
(9,134)
|
|
Deferred revenue and
returns liability
|
464
|
|
4,114
|
|
Other non-current
liabilities
|
(2,066)
|
|
(862)
|
|
Net cash provided by
operating activities
|
14,506
|
|
59,700
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of
available-for-sale investments
|
(8,251)
|
|
(70,910)
|
|
Sales and maturities
of available-for-sale investments
|
161,392
|
|
126,920
|
|
Purchases of property
and equipment
|
(6,176)
|
|
(4,135)
|
|
Purchases of other
assets
|
(578)
|
|
(370)
|
|
Net cash provided by
investing activities
|
146,387
|
|
51,505
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Proceeds from
revolving line of credit
|
--
|
|
310,000
|
|
Payments on
debt
|
(140,572)
|
|
--
|
|
Repurchases of common
stock
|
--
|
|
(16,287)
|
|
Payment of taxes
withheld for vested stock awards
|
(17,817)
|
|
(16,294)
|
|
Net cash provided by
(used in) financing activities
|
(158,389)
|
|
277,419
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
2,504
|
|
388,624
|
|
Cash and cash
equivalents at beginning of period
|
202,720
|
|
227,146
|
|
Cash and cash
equivalents at end of period
|
$205,224
|
|
$615,770
|
|
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SOURCE Silicon Labs