AUSTIN, Texas, July 28, 2021 /PRNewswire/ -- Silicon
Labs (NASDAQ: SLAB), a leader in secure, intelligent
wireless technology for a more connected world, reported
strong financial results for the second quarter, which ended
July 3, 2021. Revenue exceeded the
top of the guidance range at $278
million, and revenue from the Internet of Things business
(IoT) ended at a record high of $169
million, up seven percent sequentially and 48 percent
year-on-year. Second quarter GAAP and non-GAAP diluted earnings per
share (EPS) were $0.44 and
$1.05, respectively.
"We continue to capitalize on the increased adoption, growth and
diversity of the global IoT market," said Silicon Labs CEO
Tyson Tuttle. "Achieving another
quarter of record revenue, robust bookings, and strong design wins
amid a tight supply chain environment is a testament to our
powerful development platform, performance-driven team, and
purpose-oriented culture."
Earlier in the week, Silicon Labs accomplished another major
milestone, completing the divestiture of its Infrastructure and
Automotive (I&A) businesses to Skyworks Solutions,
Inc. (NASDAQ: SWKS) for $2.75
billion in an all-cash transaction, the proceeds of which
have been fully funded. Silicon Labs is now reporting revenue from
the divested products as "discontinued operations" and from IoT as
"continuing operations."
Second Quarter Financial Highlights
- IoT revenue from continuing operations increased to
$169 million, up seven percent
sequentially and 48 percent year-on-year
- I&A revenue from discontinued operations increased to
$108 million, up 11 percent
sequentially and 16 percent year-on-year
Results from continuing operations on a GAAP
basis:
- GAAP gross margin was 56.8%
- GAAP R&D expenses were $65
million
- GAAP SG&A expenses were $43
million
- GAAP operating loss as a percentage of revenue was (6.8)%
- GAAP loss per share was $(0.41)
Results from continuing operations 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
were as follows:
- Non-GAAP gross margin was 56.9%
- Non-GAAP R&D expenses were $51
million
- Non-GAAP SG&A expenses were $34
million
- Non-GAAP operating income as a percentage of revenue was
6.6%
- Non-GAAP diluted earnings per share were $0.16
Innovations and Achievements
- Completed smooth transition of the infrastructure and
automotive business to Skyworks Solutions, positioning Silicon Labs
as a pure-play leader in secure, intelligent wireless
connectivity.
- Continued to drive the IoT industry forward by contributing
more than 20 percent of the source code and launching new products
for Matter, which simplifies the complexities of secure, reliable
wireless connectivity for both developers and consumers.
- Collaborated with fellow IoT leader, Wirepas, to launch a
connected solution for asset tracking and building automation.
Wirepas chose Silicon Labs for its integrated hardware and software
platform, ultra-low power chips and affordable solutions.
- Remained steadfast in our dedication to environmental
sustainability and passion for supporting local communities by
becoming the first corporation to join the International Institute
of Information Technology Hyderabad's new Smart City Living Lab,
which focuses R&D on devices that improve life in densifying
cities.
- Demonstrated we are passionate about connecting more than
"things" and announced the annual WorksWith conference, which
connects developers and business leaders to the information,
experts, and technology needed to go from IoT idea to award-winning
innovation.
Business Outlook
The company expects third quarter revenue from continuing
operations to be in the range of $170 to $180 million. The company also estimates the
following results from continuing operations:
On a GAAP basis:
- GAAP gross margin between 57% and 57.5%
- GAAP operating expenses at approximately $116 million
- GAAP effective tax rate of approximately (11)%
- GAAP diluted loss per share to be in the range of a
$(0.56) to $(0.46)
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:
- Non-GAAP gross margin between 57% and 58%
- Non-GAAP operating expenses at approximately $93 million
- Non-GAAP effective tax rate of approximately 14%
- Non-GAAP diluted earnings per share between $0.10 and $0.20
Earnings Webcast and Conference Call
Silicon Labs will host an earnings conference call to discuss
the quarterly results and answer questions at 7:30 am CST today. An audio webcast will be
available on Silicon Labs' website (www.silabs.com) under Investor
Relations. The company will post an audio recording of the event at
silabs.com/investors and make a replay available through
August 4, 2021 online or by calling
(877) 344-7529 (US) or (412) 317-0088 (international) and entering
access code 10158301.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leader in secure,
intelligent wireless technology for a more connected
world. Our integrated hardware and software platform,
intuitive development tools, unmatched ecosystem and
robust support make us the ideal long-term partner in building
advanced industrial, commercial, home and life
applications. We make it easy for developers to solve
complex wireless challenges throughout the
product lifecycle and get to market
quickly with innovative solutions that transform
industries, grow economies and improve lives.
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 effect of the Skyworks
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 timing and scope of
anticipated share repurchases and/or dividends; 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. The level of share repurchases and/or
dividends depends on market conditions and the level of other uses
of cash. 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 Operations
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 3,
2021
|
|
July 4,
2020
|
|
July 3,
2021
|
|
July 4,
2020
|
Revenues
|
$169,492
|
|
$114,350
|
|
$327,349
|
|
$232,368
|
Cost of
revenues
|
73,194
|
|
47,771
|
|
139,297
|
|
96,942
|
Gross
profit
|
96,298
|
|
66,579
|
|
188,052
|
|
135,426
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research
and development
|
64,832
|
|
57,992
|
|
128,847
|
|
115,702
|
Selling,
general and administrative
|
42,953
|
|
40,350
|
|
85,407
|
|
84,802
|
Operating
expenses
|
107,785
|
|
98,342
|
|
214,254
|
|
200,504
|
Operating
loss
|
(11,487)
|
|
(31,763)
|
|
(26,202)
|
|
(65,078)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income and other, net
|
647
|
|
3,267
|
|
3,522
|
|
6,518
|
Interest
expense
|
(6,486)
|
|
(11,778)
|
|
(17,810)
|
|
(17,319)
|
Loss from continuing
operations before income taxes
|
(17,326)
|
|
(40,274)
|
|
(40,490)
|
|
(75,879)
|
Provision (benefit)
for income taxes
|
1,165
|
|
(4,229)
|
|
3,157
|
|
(8,443)
|
Loss from continuing
operations
|
(18,491)
|
|
(36,045)
|
|
(43,647)
|
|
(67,436)
|
Income from
discontinued operations, net of income taxes
|
38,423
|
|
34,222
|
|
77,088
|
|
67,857
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
19,932
|
|
$
(1,823)
|
|
$
33,441
|
|
$
421
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
Continuing operations
|
$
(0.41)
|
|
$
(0.82)
|
|
$
(0.98)
|
|
$
(1.54)
|
Net
income
|
$
0.44
|
|
$
(0.04)
|
|
$
0.75
|
|
$
0.01
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing operations
|
$
(0.41)
|
|
$
(0.82)
|
|
$
(0.98)
|
|
$
(1.54)
|
Net
income
|
$
0.44
|
|
$
(0.04)
|
|
$
0.73
|
|
$
0.01
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
44,803
|
|
43,761
|
|
44,481
|
|
43,699
|
Diluted
|
45,756
|
|
43,761
|
|
45,794
|
|
44,219
|
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(In thousands,
except per share data)
|
|
Non-GAAP Income
Statement
Items – Continuing Operations
|
|
Three Months
Ended
July 3,
2021
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
|
Stock
Compensation
Expense
|
|
Intangible
Asset
Amortization
|
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
Revenues
|
|
$169,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
96,298
|
|
56.8%
|
|
|
$199
|
|
$
--
|
|
|
$96,497
|
|
56.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
64,832
|
|
38.3%
|
|
|
5,488
|
|
8,184
|
|
|
51,160
|
|
30.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
42,953
|
|
25.3%
|
|
|
5,565
|
|
3,267
|
|
|
34,121
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(11,487)
|
|
(6.8)%
|
|
|
11,252
|
|
11,451
|
|
|
11,216
|
|
6.6%
|
Non-GAAP Earnings
Per Share
– Continuing Operations
|
|
Three Months
Ended
July 3,
2021
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Investment
Fair Value
Adjustments*
|
|
Interest
Expense
Adjustments*
|
|
Income
Tax
Adjustments
|
|
Non- GAAP
Measure
|
Loss from continuing
operations
|
|
$(18,491)
|
|
$11,252
|
|
$11,451
|
|
$(236)
|
|
$4,992
|
|
$(1,500)
|
|
$7,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive
Securities Excluded From GAAP Measure Due to Net
Loss
|
|
|
Diluted shares
outstanding
|
|
44,803
|
|
953
|
|
45,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
(0.41)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents pre-tax
amounts
|
|
Non-GAAP Earnings
Per Share
– Net Income
|
|
Three Months
Ended July 3,
2021
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Disposition
Related
Items*
|
|
Investment
Fair Value
Adjustments*
|
|
Interest
Expense
Adjustments*
|
|
Income
Tax
Adjustments
|
|
Non- GAAP Measure
|
Net income
|
|
$19,932
|
|
$13,644
|
|
$11,562
|
|
$3,195
|
|
$(236)
|
|
$4,992
|
|
$(4,818)
|
|
$48,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
45,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Represents pre-tax
amounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
(In millions,
except per share data)
|
|
Business
Outlook
|
|
Three Months
Ending
October 2,
2021
|
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments*
|
|
Non-GAAP
Measure
|
Gross
margin
|
|
57% -
57.5%
|
|
0% - 0.5%
|
|
57% - 58%
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$116
|
|
$23
|
|
$93
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(11)%
|
|
25%
|
|
14%
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share - low
|
|
$(0.56)
|
|
$0.66
|
|
$0.10
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share - high
|
|
$(0.46)
|
|
$0.66
|
|
$0.20
|
|
* Non-GAAP
adjustments include the following estimates: stock
compensation expense of $12.8 million, intangible asset
amortization of $11.1 million, interest expense adjustments of $5.1
million and the associated tax impact from the aforementioned
items.
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
July 3,
2021
|
|
January 2,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
303,084
|
|
$
202,720
|
Short-term investments
|
314,183
|
|
521,963
|
Accounts
receivable, net
|
99,546
|
|
95,169
|
Inventories
|
52,269
|
|
47,861
|
Prepaid
expenses and other current assets
|
94,378
|
|
87,103
|
Current
assets held for sale
|
297,543
|
|
21,005
|
Total current
assets
|
1,161,003
|
|
975,821
|
Property and
equipment, net
|
139,362
|
|
135,803
|
Goodwill
|
376,389
|
|
376,389
|
Other intangible
assets, net
|
140,581
|
|
163,483
|
Other assets,
net
|
78,667
|
|
76,675
|
Non-current assets
held for sale
|
--
|
|
265,316
|
Total
assets
|
$1,896,002
|
|
$1,993,487
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
70,820
|
|
$
54,949
|
Current
portion of convertible debt, net
|
--
|
|
134,480
|
Deferred
revenue and returns liability
|
12,811
|
|
12,986
|
Other
current liabilities
|
70,552
|
|
81,650
|
Current
liabilities held for sale
|
699
|
|
433
|
Total current
liabilities
|
154,882
|
|
284,498
|
Convertible debt,
net
|
439,654
|
|
428,945
|
Other non-current
liabilities
|
73,712
|
|
79,752
|
Non-current
liabilities held for sale
|
--
|
|
451
|
Total
liabilities
|
668,248
|
|
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;
44,764 and 43,925
shares issued and outstanding at
July 3, 2021 and
January 2, 2021, respectively
|
4
|
|
4
|
Additional paid-in capital
|
200,716
|
|
204,359
|
Retained
earnings
|
1,027,105
|
|
993,664
|
Accumulated other comprehensive income (loss)
|
(71)
|
|
1,814
|
Total stockholders'
equity
|
1,227,754
|
|
1,199,841
|
Total liabilities and
stockholders' equity
|
$1,896,002
|
|
$1,993,487
|
Silicon
Laboratories Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
July 3,
2021
|
|
July 4,
2020
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$ 33,441
|
|
$
421
|
|
Adjustments to
reconcile net income to cash provided by operating activities
of
continuing operations:
|
|
|
|
|
Income
from discontinued operations, net of income taxes
|
(77,088)
|
|
(67,857)
|
|
Depreciation of property and equipment
|
8,184
|
|
7,711
|
|
Amortization of intangible assets and other assets
|
22,902
|
|
20,486
|
|
Amortization of debt discount and debt issuance
costs
|
11,822
|
|
8,359
|
|
Loss on
extinguishment of convertible debt
|
3,370
|
|
3,685
|
|
Stock-based compensation expense
|
22,620
|
|
24,461
|
|
Deferred
income taxes
|
(5,644)
|
|
1,177
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(4,377)
|
|
7,070
|
|
Inventories
|
(4,447)
|
|
8,021
|
|
Prepaid expenses and
other assets
|
(5,489)
|
|
22,976
|
|
Accounts
payable
|
14,711
|
|
(769)
|
|
Other current
liabilities and income taxes
|
(10,626)
|
|
(15,480)
|
|
Deferred revenue and
returns liability
|
(175)
|
|
6,678
|
|
Other non-current
liabilities
|
(3,464)
|
|
1,146
|
|
Net cash provided by
operating activities of continuing operations
|
5,740
|
|
28,085
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of
marketable securities
|
(80,426)
|
|
(199,347)
|
|
Sales and maturities
of marketable securities
|
286,649
|
|
255,112
|
|
Purchases of property
and equipment
|
(10,779)
|
|
(9,051)
|
|
Purchases of other
assets
|
(578)
|
|
(820)
|
|
Acquisition of
business, net of cash acquired
|
--
|
|
(316,809)
|
|
Net cash provided by
(used in) investing activities of continuing operations
|
194,866
|
|
(270,915)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Proceeds from
issuance of debt
|
--
|
|
845,000
|
|
Payments on
debt
|
(140,572)
|
|
(597,446)
|
|
Repurchases of common
stock
|
(18,982)
|
|
(16,287)
|
|
Payment of taxes
withheld for vested stock awards
|
(19,732)
|
|
(16,756)
|
|
Proceeds from the
issuance of common stock
|
8,388
|
|
7,757
|
|
Net cash provided by
(used in) financing activities of continuing operations
|
(170,898)
|
|
222,268
|
|
|
|
|
|
|
Discontinued
Operations
|
|
|
|
|
Operating
activities
|
72,674
|
|
72,418
|
|
Investing
activities
|
(2,018)
|
|
(1,343)
|
|
Net cash provided by
(used in) discontinued operations
|
70,656
|
|
71,075
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
100,364
|
|
50,513
|
|
Cash and cash
equivalents at beginning of period
|
202,720
|
|
227,146
|
|
Cash and cash
equivalents at end of period
|
$303,084
|
|
$277,659
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/silicon-labs-announces-record-revenue-for-second-quarter-2021-301342825.html
SOURCE Silicon Labs