IoT leader reports results above expectations
and anticipates growth in the first quarter
AUSTIN,
Texas, Feb. 7, 2024 /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
30, 2023.
"Though the market environment remains volatile, with inventory
corrections continuing across our end markets, we delivered top and
bottom-line results ahead of expectations," said Matt Johnson, President and Chief Executive
Officer at Silicon Labs. "We expect to return to sequential revenue
growth, beginning in the first quarter, as our customers destock
their inventories, design wins continue ramping to production, and
bookings trends improve."
Fourth Quarter Financial Highlights
- Revenue was $87 million
- Industrial & Commercial revenue for the quarter was
$60 million
- Home & Life revenue for the quarter was $27 million
Results on a GAAP
basis:
- GAAP gross margin was 50.6%
- GAAP R&D expenses were $83
million
- GAAP SG&A expenses were $34
million
- GAAP operating loss was $73
million
- GAAP diluted loss per share was $(2.19)
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 50.9%
- Non-GAAP R&D expenses were $63
million
- Non-GAAP SG&A expenses were $28
million
- Non-GAAP operating loss was $47
million
- Non-GAAP diluted loss per share was $(1.19)
As the company previously disclosed, it has determined that a
material weakness in internal control related to the operation and
documentation of certain inventory controls existed as of
December 30, 2023. As of the date of
this release, the company has not identified any misstatements in
its previously issued financial statements, and it expects to file
its Form 10-K in a timely manner by the end of February 2024.
Business Highlights
- Selected as an honoree in the Embedded Technologies category at
the CES 2024 Innovation Awards for its SiWx917 SoC. The x917 is the
first Wi-Fi 6 combo chip in the Silicon Labs portfolio and is a
Matter-ready, fully integrated single-chip solution with
industry-leading low power consumption, ideal for secure cloud
connectivity.
- Announced the first phase of its collaboration with Arduino to
integrate the Matter protocol into Arduino's integrated development
environment, bringing simplicity and ease of use to wireless
development for Silicon Labs developers as well as Arduino's 40
million users. Silicon Labs continues to lead in contributing to
Matter development and mass market adoption.
- On January 25th, 2024,
the company's board of directors authorized a $100 million repurchase plan for the company's
common stock valid through the end of 2024.
Business Outlook
The company expects first-quarter revenue to be between
$100 to $110
million. The company also estimates the following
results:
On a GAAP basis:
- GAAP gross margin to be 52%
- GAAP operating expenses of approximately $118 million
- GAAP diluted loss per share between $(1.89) to $(2.05)
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 to be 52%
- Non-GAAP operating expenses of approximately $96 million
- Non-GAAP diluted loss per share between $(0.92) to $(1.04)
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 investor.silabs.com and make a replay available
through March 8, 2024.
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, including disruptions in the financial services
industry; 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 in the Middle East, and
between Russia and Ukraine), terrorism, sanctions or other
geopolitical events globally (including in the Middle East, and 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; risks associated with any material
weakness in our internal controls over financial
reporting; 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 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
Revenues
|
$
86,845
|
|
$
257,325
|
|
$
782,258
|
|
$1,024,106
|
Cost of
revenues
|
42,919
|
|
100,028
|
|
321,672
|
|
381,549
|
Gross profit
|
43,926
|
|
157,297
|
|
460,586
|
|
642,557
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research
and development
|
83,404
|
|
86,649
|
|
337,744
|
|
332,326
|
Selling,
general and administrative
|
33,633
|
|
46,573
|
|
146,996
|
|
190,971
|
Operating
expenses
|
117,037
|
|
133,222
|
|
484,740
|
|
523,297
|
Operating income
(loss)
|
(73,111)
|
|
24,075
|
|
(24,154)
|
|
119,260
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income and other, net
|
3,610
|
|
4,299
|
|
19,165
|
|
13,915
|
Interest
expense
|
(942)
|
|
(1,849)
|
|
(5,554)
|
|
(6,723)
|
Income (loss) before
income taxes
|
(70,443)
|
|
26,525
|
|
(10,543)
|
|
126,452
|
Provision (benefit) for
income taxes
|
(15,536)
|
|
1,579
|
|
7,943
|
|
38,450
|
Equity-method earnings
(loss)
|
(14,880)
|
|
415
|
|
(16,030)
|
|
3,400
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(69,787)
|
|
$
25,361
|
|
$
(34,516)
|
|
$ 91,402
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(2.19)
|
|
$ 0.78
|
|
$
(1.09)
|
|
$
2.61
|
Diluted
|
$
(2.19)
|
|
$ 0.76
|
|
$
(1.09)
|
|
$
2.54
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
31,848
|
|
32,542
|
|
31,804
|
|
35,086
|
Diluted
|
31,848
|
|
33,265
|
|
31,804
|
|
36,042
|
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 30,
2023
|
Non-GAAP Income
Statement Items
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Intangible Asset
Amortization
|
|
Termination
Costs
|
|
Non-
GAAP
Measure
|
|
Non-GAAP
Percent of
Revenue
|
Revenues
|
|
$86,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
43,926
|
|
50.6 %
|
|
$132
|
|
$
--
|
|
$152
|
|
$44,210
|
|
50.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
83,404
|
|
96.0 %
|
|
8,588
|
|
6,193
|
|
5,993
|
|
62,630
|
|
72.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
33,633
|
|
38.7 %
|
|
2,321
|
|
19
|
|
2,970
|
|
28,323
|
|
32.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(73,111)
|
|
(84.2) %
|
|
11,041
|
|
6,212
|
|
9,115
|
|
(46,743)
|
|
(53.8) %
|
|
|
Three Months
Ended
December 30,
2023
|
Non-GAAP Earnings
(Loss) Per Share
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Termination
Costs*
|
|
Equity-Method
Investment
Adjustments*
|
|
Income
Tax
Adjustments
|
|
Non-
GAAP
Measure
|
Net income
(loss)
|
|
$(69,787)
|
|
$11,041
|
|
$6,212
|
|
$9,115
|
|
$14,880
|
|
$(9,409)
|
|
$(37,948)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
31,848
|
|
|
|
|
|
|
|
|
|
|
|
31,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
|
$(2.19)
|
|
|
|
|
|
|
|
|
|
|
|
$(1.19)
|
|
* Represents pre-tax
amounts
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
(In millions, except
per share data)
|
|
Business
Outlook
|
|
Three Months
Ending
March 30,
2024
|
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments**
|
|
Non-GAAP
Measure
|
Gross margin
|
|
52 %
|
|
0 %
|
|
52 %
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$118
|
|
$22
|
|
$96
|
|
|
|
|
|
|
|
Diluted loss per share
- low
|
|
$(2.05)
|
|
$1.01
|
|
$(1.04)
|
|
|
|
|
|
|
|
Diluted loss per share
- high
|
|
$(1.89)
|
|
$0.97
|
|
$(0.92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Non-GAAP adjustments
include the following estimates: stock compensation expense of
$15.9 million, intangible asset amortization of $6.1 million,
termination costs of $0.5 million, and the associated tax impact
from the aforementioned items.
|
Silicon Laboratories
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
December 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
227,504
|
|
$
499,915
|
Short-term
investments
|
211,720
|
|
692,024
|
Accounts
receivable, net
|
29,295
|
|
71,437
|
Inventories
|
194,295
|
|
100,417
|
Prepaid
expenses and other current assets
|
75,117
|
|
97,570
|
Total current
assets
|
737,931
|
|
1,461,363
|
Property and equipment,
net
|
145,890
|
|
152,016
|
Goodwill
|
376,389
|
|
376,389
|
Other intangible
assets, net
|
59,533
|
|
84,907
|
Other assets,
net
|
123,313
|
|
94,753
|
Total assets
|
$1,443,056
|
|
$2,169,428
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 57,498
|
|
$ 89,860
|
Revolving
line of credit
|
45,000
|
|
--
|
Deferred
revenue and returns liability
|
2,117
|
|
6,780
|
Other
current liabilities
|
58,955
|
|
89,136
|
Total current
liabilities
|
163,570
|
|
185,776
|
Convertible debt,
net
|
--
|
|
529,573
|
Other non-current
liabilities
|
70,804
|
|
49,071
|
Total
liabilities
|
234,374
|
|
764,420
|
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;
31,897 and 31,994
shares issued and outstanding at
December 30, 2023 and
December 31, 2022, respectively
|
3
|
|
3
|
Additional
paid-in capital
|
16,973
|
|
--
|
Retained
earnings
|
1,192,731
|
|
1,415,693
|
Accumulated other comprehensive loss
|
(1,025)
|
|
(10,688)
|
Total stockholders'
equity
|
1,208,682
|
|
1,405,008
|
Total liabilities and
stockholders' equity
|
$1,443,056
|
|
$2,169,428
|
Silicon Laboratories
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Year
Ended
|
|
December 30,
2023
|
|
December 31,
2022
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$ (34,516)
|
|
$ 91,402
|
Adjustments to
reconcile net income (loss) to net cash provided by (used
in)
operating
activities of continuing operations:
|
|
|
|
Depreciation of property and equipment
|
25,707
|
|
22,524
|
Amortization of other intangible assets
|
25,374
|
|
34,071
|
Amortization of debt discount and debt issuance
costs
|
960
|
|
2,003
|
Loss on
extinguishment of convertible debt
|
--
|
|
3
|
Stock-based compensation
expense
|
48,208
|
|
60,510
|
Equity-method (earnings) loss
|
16,030
|
|
(3,400)
|
Deferred
income taxes
|
(11,815)
|
|
(18,240)
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
42,142
|
|
26,876
|
Inventories
|
(93,398)
|
|
(51,044)
|
Prepaid expenses and
other assets
|
(10,733)
|
|
(31,240)
|
Accounts
payable
|
(25,644)
|
|
36,797
|
Other current
liabilities and income taxes
|
(37,793)
|
|
(12,738)
|
Deferred revenue and
returns liability
|
(4,663)
|
|
(7,069)
|
Other non-current
liabilities
|
29,793
|
|
(9,181)
|
Net cash provided by
(used in) operating activities of continuing operations
|
(30,348)
|
|
141,274
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of marketable
securities
|
(103,485)
|
|
(607,237)
|
Sales of marketable
securities
|
395,565
|
|
223,354
|
Maturities of
marketable securities
|
200,530
|
|
650,946
|
Purchases of property
and equipment
|
(22,282)
|
|
(26,525)
|
Purchases of other
assets
|
(520)
|
|
--
|
Net cash provided by
investing activities of continuing operations
|
469,808
|
|
240,538
|
|
|
|
|
Financing
Activities
|
|
|
|
Proceeds from issuance
of debt
|
80,000
|
|
--
|
Payments on
debt
|
(571,157)
|
|
(21)
|
Repurchases of common
stock
|
(217,137)
|
|
(883,424)
|
Payment of taxes
withheld for vested stock awards
|
(18,189)
|
|
(15,387)
|
Proceeds from the
issuance of common stock
|
14,612
|
|
11,779
|
Net cash used in
financing activities of continuing operations
|
(711,871)
|
|
(887,053)
|
|
|
|
|
Discontinued
Operations
|
|
|
|
Operating
activities
|
--
|
|
(69,467)
|
Net cash used in
discontinued operations
|
--
|
|
(69,467)
|
|
|
|
|
Decrease in cash and
cash equivalents
|
(272,411)
|
|
(574,708)
|
Cash and cash
equivalents at beginning of period
|
499,915
|
|
1,074,623
|
Cash and cash
equivalents at end of period
|
$
227,504
|
|
$
499,915
|
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SOURCE Silicon Labs