IoT leader doubles revenue in two years to
more than $1 billion
AUSTIN,
Texas, Feb. 1, 2023 /PRNewswire/ -- Silicon
Labs (NASDAQ: SLAB), a leader in secure, intelligent
wireless technology for a more connected world, reported
financial results for the fourth quarter, which ended
December 31, 2022. Revenue
exceeded the top end of the guidance range at $257 million, up 23% year-on-year. Silicon
Labs saw full-year revenue growth across both its Industrial &
Commercial and Home & Life product groups.
"We are incredibly proud of our team's execution in doubling our
organic revenue in two years to more than $1
billion annually, while at the same time increasing our
design wins by 120%," said Matt
Johnson, President and Chief Executive Officer at Silicon
Labs. "The strength of our opportunity funnel and design win
pipeline gives us confidence in our ability to continue expanding
our leadership position in IoT while navigating the current
economic uncertainty."
Fourth Quarter Financial Highlights
- Revenue was $257 million, up 23%
year-on-year
- Industrial & Commercial revenue for the quarter was
$157 million, up 36%
year-on-year
- Home & Life revenue for the quarter was $100 million, up 8% year-on-year
- Gross margin of 61% was favorable due to strong product,
pricing, and customer mix in the quarter
Results on a GAAP
basis:
- GAAP gross margin was 61%
- GAAP R&D expenses were $87
million
- GAAP SG&A expenses were $47
million
- GAAP operating income as a percentage of revenue was 9%
- GAAP diluted earnings per share were $0.76
Results on a non-GAAP basis, excluding the impact of stock
compensation, amortization of acquired intangible assets, and
certain other items as set forth in the below GAAP to Non-GAAP
reconciliation tables were as follows:
- Non-GAAP gross margin was 61%
- Non-GAAP R&D expenses were $70
million
- Non-GAAP SG&A expenses were $39
million
- Non-GAAP operating income as a percentage of revenue was
19%
- Non-GAAP diluted earnings per share were $1.31
Business Highlights
- The Connectivity Standards Alliance (CSA) announced the release
of Matter 1.0, the application layer protocol developed
specifically to address device interoperability within the smart
home. Silicon Labs is the leading semiconductor company code
contributor to Matter, and as of the end of 2022, claims 86% of
Matter over Thread's industry certifications. Silicon Labs has
become a one-stop resource for Matter devices, border routers, and
bridges so developers can easily bridge Matter to other IoT
development platforms like Wi-Fi, Zigbee, Thread, and Z-Wave while
leveraging their experience with Silicon Labs' hardware and
tools.
- Silicon Labs President and CEO Matt
Johnson was elected Chair of the Semiconductor Industry
Association (SIA) Board of Directors. SIA represents 99% of the
U.S. semiconductor industry by revenue and nearly two-thirds of
non-U.S. chip firms.
- Completed the buyback of $200
million of the company's shares in the quarter, resulting in
the retirement of 1.6 million shares and bringing the total share
repurchase activity since the announcement of the divestiture in
April 2021 to more than $2 billion, retiring more than 25% of the then
outstanding shares.
Business Outlook
The company expects first-quarter revenue to be between
$242 to $252
million. The company also estimates the following
results:
On a GAAP basis:
- GAAP gross margin of approximately 63%
- GAAP operating expenses of approximately $139 million
- GAAP effective tax rate of approximately 31%
- GAAP diluted earnings per share between $0.36 to $0.46
On a non-GAAP basis, excluding the impact of stock compensation,
amortization of acquired intangible assets, and certain other items
as set forth in the reconciliation tables:
- Non-GAAP gross margin of approximately 63%
- Non-GAAP operating expenses of approximately $111 million
- Non-GAAP effective tax rate of approximately 23%
- Non-GAAP diluted earnings per share between $1.07 to $1.17
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 CDT today. An audio webcast will be
available on Silicon Labs' website (www.silabs.com) under Investor
Relations. In addition, the company will post an audio recording of
the event at silabs.com/investors and make a replay available
through March 1, 2023, online or by
calling (877) 344-7529 (US) or (412) 317-0088 (international) and
entering access code 2355666.
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, thriving ecosystem, and
robust support make us an 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 competitive and cyclical nature
of the semiconductor industry; the challenging macroeconomic
environment; 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; risks that demand and the
supply chain may be adversely affected by military conflict
(including between Russia and
Ukraine), terrorism, sanctions or
other geopolitical events globally (including conflict between
Taiwan and China); 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 and/or obtaining sufficient supply from
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 the impact of COVID-19 on the
U.S. and global economy; debt-related risks; capital-raising risks;
the timing and scope of share repurchases and/or dividends; 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 Operations
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2022
|
|
January 1,
2022
|
|
December 31,
2022
|
|
January 1,
2022
|
|
Revenues
|
$
257,325
|
|
$
208,680
|
|
$
1,024,106
|
|
$
720,860
|
|
Cost of
revenues
|
100,028
|
|
80,849
|
|
381,549
|
|
295,468
|
|
Gross profit
|
157,297
|
|
127,831
|
|
642,557
|
|
425,392
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research
and development
|
86,649
|
|
71,705
|
|
332,326
|
|
273,208
|
|
Selling,
general and administrative
|
46,573
|
|
53,487
|
|
190,971
|
|
185,022
|
|
Operating
expenses
|
133,222
|
|
125,192
|
|
523,297
|
|
458,230
|
|
Operating income
(loss)
|
24,075
|
|
2,639
|
|
119,260
|
|
(32,838)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income and other, net
|
4,299
|
|
2,595
|
|
13,915
|
|
5,696
|
|
Interest
expense
|
(1,849)
|
|
(6,628)
|
|
(6,723)
|
|
(31,033)
|
|
Income (loss) from
continuing operations before income taxes
|
26,525
|
|
(1,394)
|
|
126,452
|
|
(58,175)
|
|
Provision for income
taxes
|
1,579
|
|
884
|
|
38,450
|
|
13,427
|
|
Equity-method
earnings
|
415
|
|
7,791
|
|
3,400
|
|
13,728
|
|
Income (loss) from
continuing operations
|
25,361
|
|
5,513
|
|
91,402
|
|
(57,874)
|
|
Income (loss) from
discontinued operations, net of income taxes
|
--
|
|
(8,611)
|
|
--
|
|
2,175,273
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
25,361
|
|
$
(3,098)
|
|
$ 91,402
|
|
$
2,117,399
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.78
|
|
$
0.14
|
|
$
2.61
|
|
$
(1.35)
|
|
Net
income
|
$
0.78
|
|
$
(0.08)
|
|
$
2.61
|
|
$
49.44
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.76
|
|
$
0.13
|
|
$
2.54
|
|
$
(1.35)
|
|
Net
income
|
$
0.76
|
|
$
(0.08)
|
|
$
2.54
|
|
$
47.78
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
32,542
|
|
38,965
|
|
35,086
|
|
42,830
|
|
Diluted
|
33,265
|
|
41,031
|
|
36,042
|
|
44,315
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this
document, Silicon Labs has provided non-GAAP financial measurements
on a basis excluding non-cash and other charges and benefits.
Details of these excluded items are presented in the tables below,
which reconcile the GAAP results to non-GAAP financial
measurements.
The non-GAAP financial measurements do not replace the
presentation of Silicon Labs' GAAP financial results. These
measurements provide supplemental information to assist management
and investors in analyzing Silicon Labs' financial position and
results of operations. Silicon Labs has chosen to provide this
information to investors to enable them to perform meaningful
comparisons of past, present, and future operating results and as a
means to emphasize the results of core on-going operations.
Unaudited
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(In thousands,
except per share data)
|
|
|
|
Three Months
Ended
December 31,
2022
|
Non-GAAP Income
Statement Items
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock Compensation
Expense
|
|
Intangible Asset
Amortization
|
|
Termination Costs
& Other
|
|
Non-GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
Revenues
|
|
$257,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
157,297
|
|
61.1 %
|
|
$318
|
|
$
--
|
|
$
--
|
|
$157,615
|
|
61.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
86,649
|
|
33.7 %
|
|
9,378
|
|
6,724
|
|
873
|
|
69,674
|
|
27.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
46,573
|
|
18.1 %
|
|
7,601
|
|
19
|
|
(279)
|
|
39,232
|
|
15.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
24,075
|
|
9.4 %
|
|
17,297
|
|
6,743
|
|
594
|
|
48,709
|
|
18.9 %
|
|
|
Three Months
Ended
December 31,
2022
|
Non-GAAP Earnings
Per Share
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible Asset
Amortization*
|
|
Termination Costs
& Other*
|
|
Equity-Method
Investment
Adjustments*
|
|
Income
Tax
Adjustments
|
|
Non-
GAAP
Measure
|
|
Net income
|
|
$25,361
|
|
$17,297
|
|
$6,743
|
|
$594
|
|
$(414)
|
|
$(6,047)
|
|
$43,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
33,265
|
|
|
|
|
|
|
|
|
|
|
|
33,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.76
|
|
|
|
|
|
|
|
|
|
|
|
$
1.31
|
|
|
* Represents pre-tax
amounts
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
(In millions, except
per share data)
|
|
Business
Outlook
|
|
Three Months
Ending
April 1,
2023
|
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments**
|
|
Non-GAAP
Measure
|
Gross margin
|
|
63 %
|
|
0 %
|
|
63 %
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$139
|
|
$(28)
|
|
$111
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
31 %
|
|
(8) %
|
|
23 %
|
|
|
|
|
|
|
|
Diluted earnings per
share - low
|
|
$0.36
|
|
$0.71
|
|
$1.07
|
|
|
|
|
|
|
|
Diluted earnings per
share - high
|
|
$0.46
|
|
$0.71
|
|
$1.17
|
|
** Non-GAAP adjustments
include the following estimates: stock compensation expense of
$16.6 million, intangible asset amortization of $6.5 million,
termination costs of $5.4 million, and the associated tax impact
from the aforementioned items.
|
Silicon Laboratories
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
December
31,
2022
|
|
January 1,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
499,915
|
|
$1,074,623
|
Short-term
investments
|
692,024
|
|
964,582
|
Accounts
receivable, net
|
71,437
|
|
98,313
|
Inventories
|
100,417
|
|
49,307
|
Prepaid
expenses and other current assets
|
97,570
|
|
51,748
|
Total current
assets
|
1,461,363
|
|
2,238,573
|
Property and equipment,
net
|
152,016
|
|
146,516
|
Goodwill
|
376,389
|
|
376,389
|
Other intangible
assets, net
|
84,907
|
|
118,978
|
Other assets,
net
|
94,753
|
|
77,839
|
Total assets
|
$2,169,428
|
|
$2,958,295
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 89,860
|
|
$ 47,327
|
Current
portion of convertible debt, net
|
--
|
|
450,599
|
Deferred
revenue and returns liability
|
6,780
|
|
13,849
|
Other
current liabilities
|
89,136
|
|
157,052
|
Total current
liabilities
|
185,776
|
|
668,827
|
Convertible debt,
net
|
529,573
|
|
--
|
Other non-current
liabilities
|
49,071
|
|
77,044
|
Total
liabilities
|
764,420
|
|
745,871
|
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;
31,994 and 38,481
shares issued and outstanding at
December 31, 2022 and
January 1, 2022, respectively
|
3
|
|
4
|
Retained
earnings
|
1,415,693
|
|
2,214,839
|
Accumulated other comprehensive loss
|
(10,688)
|
|
(2,419)
|
Total stockholders'
equity
|
1,405,008
|
|
2,212,424
|
Total liabilities and
stockholders' equity
|
$2,169,428
|
|
$2,958,295
|
Silicon Laboratories
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Year
Ended
|
|
December 31,
2022
|
|
January 1,
2022
|
Operating
Activities
|
|
|
|
Net income
|
$ 91,402
|
|
$2,117,399
|
Adjustments to
reconcile net income to net cash provided by (used in)
operating
activities of continuing operations:
|
|
|
|
Income
from discontinued operations, net of income taxes
|
--
|
|
(2,175,273)
|
Depreciation of property and equipment
|
22,524
|
|
18,051
|
Amortization of other intangible assets
|
34,071
|
|
44,505
|
Amortization of debt discount and debt issuance
costs
|
2,003
|
|
22,767
|
Loss on
extinguishment of convertible debt
|
3
|
|
3,370
|
Stock-based compensation
expense
|
60,510
|
|
56,842
|
Equity-method earnings
|
(3,400)
|
|
(13,728)
|
Deferred
income taxes
|
(18,240)
|
|
(3,414)
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
26,876
|
|
(3,144)
|
Inventories
|
(51,044)
|
|
(1,510)
|
Prepaid expenses and
other assets
|
(31,240)
|
|
44,664
|
Accounts
payable
|
36,797
|
|
(7,704)
|
Other current
liabilities and income taxes
|
(12,738)
|
|
2,109
|
Deferred revenue and
returns liability
|
(7,069)
|
|
863
|
Other non-current
liabilities
|
(9,181)
|
|
(14,599)
|
Net cash provided by
operating activities of continuing operations
|
141,274
|
|
91,198
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of marketable
securities
|
(607,237)
|
|
(1,541,971)
|
Sales of marketable
securities
|
223,354
|
|
250,075
|
Maturities of
marketable securities
|
650,946
|
|
844,966
|
Purchases of property
and equipment
|
(26,525)
|
|
(28,577)
|
Purchases of other
assets
|
--
|
|
(1,158)
|
Net cash provided by
(used in) investing activities of continuing operations
|
240,538
|
|
(476,665)
|
|
|
|
|
Financing
Activities
|
|
|
|
Payments on
debt
|
(21)
|
|
(140,572)
|
Repurchases of common
stock
|
(883,424)
|
|
(1,150,044)
|
Payment of taxes
withheld for vested stock awards
|
(15,387)
|
|
(22,239)
|
Proceeds from the
issuance of common stock
|
11,779
|
|
14,183
|
Net cash used in
financing activities of continuing operations
|
(887,053)
|
|
(1,298,672)
|
|
|
|
|
Discontinued
Operations
|
|
|
|
Operating
activities
|
(69,467)
|
|
(191,642)
|
Investing
activities
|
--
|
|
2,747,684
|
Net cash provided by
(used in) discontinued operations
|
(69,467)
|
|
2,556,042
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
(574,708)
|
|
871,903
|
Cash and cash
equivalents at beginning of period
|
1,074,623
|
|
202,720
|
Cash and cash
equivalents at end of period
|
$
499,915
|
|
$1,074,623
|
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SOURCE Silicon Labs