Wireless IoT leader delivers strong
second-quarter growth
AUSTIN,
Texas, July 24, 2024 /PRNewswire/ -- Silicon
Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless
technology for a more connected world, reported financial results
for the second quarter, which ended June 29, 2024.
"Silicon Labs delivered another quarter of strong sequential
growth, driven by a combination of design wins ramping to
production in several key growth areas, and end customers working
down their excess inventory," said Matt
Johnson, President and Chief Executive Officer at Silicon
Labs. "Looking forward, we expect revenue growth to continue in the
third quarter as excess inventory is further reduced, design wins
continue ramping, and bookings improve."
Second Quarter Financial Highlights
- Revenue was $145 million
- Industrial & Commercial revenue for the quarter was
$88 million
- Home & Life revenue for the quarter was $57 million
Results on a GAAP basis:
- GAAP gross margin was 53%
- GAAP operating expenses were $125
million
- GAAP operating loss was $48
million
- GAAP diluted loss per share was $(2.56)
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 53%
- Non-GAAP operating expenses were $102
million
- Non-GAAP operating loss was $25
million
- Non-GAAP diluted loss per share was $(0.56)
Business Highlights
- Due to popular demand, Silicon Labs is expanding its fifth
annual Works With Developers Conference this fall with live events
in San Jose, Hyderabad, and
Shanghai. Each event's agenda is
tailored to regional market needs and covers key IoT topics like
Matter, Smart Cities, AI and Machine Learning, and Security.
- Announced Silicon Labs' new xG22E family of wireless SoCs, its
first-ever family designed to operate within the ultra-low power
envelope required for battery-free, energy harvesting applications.
The new family consists of the BG22E, MG22E, and FG22E. As Silicon
Labs' most energy-efficient SoCs to date, all three SoCs will
enable IoT device makers to build high-performance, Bluetooth Low
Energy (LE), 802.15.4-based, or proprietary 2.4GHz. wireless
devices for battery-optimized and battery-free devices that can
harvest energy from external sources in their environments like
indoor or outdoor ambient light, ambient radio waves, and kinetic
motion.
Business Outlook
The company expects third-quarter revenue to be between
$160 to $170
million. The company also estimates the following
results:
On a GAAP basis:
- GAAP gross margin to be between 54% to 56%
- GAAP operating expenses of approximately $123 million to $125
million
- GAAP diluted loss per share per share between $(0.95) to $(1.25)
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 between 54% to 56%
- Non-GAAP operating expenses of approximately $101 million to $103
million
- Non-GAAP diluted loss per share between $(0.10) to $(0.30)
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 August 24, 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
|
|
Six Months
Ended
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Revenues
|
$
145,367
|
|
$
244,866
|
|
$
251,742
|
|
$
491,653
|
|
Cost of
revenues
|
68,784
|
|
101,091
|
|
120,090
|
|
194,018
|
|
Gross profit
|
76,583
|
|
143,775
|
|
131,652
|
|
297,635
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
85,909
|
|
85,902
|
|
166,559
|
|
175,298
|
|
Selling, general and
administrative
|
38,695
|
|
40,706
|
|
72,248
|
|
85,597
|
|
Operating
expenses
|
124,604
|
|
126,608
|
|
238,807
|
|
260,895
|
|
Operating income
(loss)
|
(48,021)
|
|
17,167
|
|
(107,155)
|
|
36,740
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
2,790
|
|
7,780
|
|
5,522
|
|
12,616
|
|
Interest
expense
|
(263)
|
|
(1,596)
|
|
(772)
|
|
(3,252)
|
|
Income (loss) before
income taxes
|
(45,494)
|
|
23,351
|
|
(102,405)
|
|
46,104
|
|
Provision for income
taxes
|
36,663
|
|
12,338
|
|
36,278
|
|
20,091
|
|
Equity-method
loss
|
—
|
|
(57)
|
|
—
|
|
(1,090)
|
|
Net income
(loss)
|
$
(82,157)
|
|
$
10,956
|
|
$
(138,683)
|
|
$
24,923
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
(2.56)
|
|
$
0.35
|
|
$
(4.33)
|
|
$
0.78
|
|
Diluted
|
$
(2.56)
|
|
$
0.33
|
|
$
(4.33)
|
|
$
0.75
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
32,124
|
|
31,614
|
|
32,018
|
|
31,786
|
|
Diluted
|
32,124
|
|
32,926
|
|
32,018
|
|
33,339
|
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
June 29,
2024
|
|
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
|
|
$ 145,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
76,583
|
|
52.7 %
|
|
$
412
|
|
$
—
|
|
$
—
|
|
$
76,995
|
|
53.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
85,909
|
|
59.1 %
|
|
10,217
|
|
6,061
|
|
902
|
|
68,729
|
|
47.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
38,695
|
|
26.6 %
|
|
5,215
|
|
19
|
|
106
|
|
33,355
|
|
22.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
124,604
|
|
85.7 %
|
|
15,432
|
|
6,080
|
|
1,008
|
|
102,084
|
|
70.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(48,021)
|
|
(33.0 %)
|
|
15,844
|
|
6,080
|
|
1,008
|
|
(25,089)
|
|
(17.3 %)
|
|
|
Three Months
Ended
June 29,
2024
|
|
Non-GAAP Loss Per
Share
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense*
|
|
Intangible
Asset
Amortization*
|
|
Termination
Costs*
|
|
Income
Tax
Adjustments
|
|
Non-
GAAP
Measure
|
|
Net income
(loss)
|
|
$
(82,157)
|
|
$
15,844
|
|
$
6,080
|
|
$
1,008
|
|
$
41,176
|
|
$ (18,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares
outstanding
|
|
32,124
|
|
|
|
|
|
|
|
|
|
32,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$
(2.56)
|
|
|
|
|
|
|
|
|
|
$
(0.56)
|
|
*
Represents pre-tax amounts
|
|
Unaudited
Forward-Looking Statements Regarding Business
Outlook
|
|
(In millions, except
per share data)
|
|
|
|
Three Months
Ended
September 28, 2024
|
|
Business
Outlook
|
|
GAAP
Measure
|
|
Non-GAAP
Adjustments**
|
|
Non-GAAP
Measure
|
|
Gross margin
|
|
54% to 56%
|
|
— %
|
|
54% to 56%
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
$123 to $125
|
|
$(22)
|
|
$101 to $103
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$(0.95) to
$(1.25)
|
|
$0.85 to
$0.95
|
|
$(0.10) to
$(0.30)
|
|
**
|
Non-GAAP adjustments
include the following estimates: stock compensation expense of
$16.8 million, intangible asset amortization of $5.4 million, and
the application of a long-term non-GAAP tax rate of 20%.
|
|
Silicon Laboratories
Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
June 29,
2024
|
|
December 30,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
240,834
|
|
$
227,504
|
|
Short-term
investments
|
98,336
|
|
211,720
|
|
Accounts receivable,
net
|
41,212
|
|
29,295
|
|
Inventories
|
166,079
|
|
194,295
|
|
Prepaid expenses and
other current assets
|
53,585
|
|
75,117
|
|
Total current
assets
|
600,046
|
|
737,931
|
|
Property and equipment,
net
|
139,397
|
|
145,890
|
|
Goodwill
|
376,389
|
|
376,389
|
|
Other intangible
assets, net
|
47,374
|
|
59,533
|
|
Other assets,
net
|
86,781
|
|
123,313
|
|
Total assets
|
$
1,249,987
|
|
$
1,443,056
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
39,295
|
|
$
57,498
|
|
Revolving line of
credit
|
—
|
|
45,000
|
|
Deferred revenue and
returns liability
|
3,323
|
|
2,117
|
|
Other current
liabilities
|
57,495
|
|
58,955
|
|
Total current
liabilities
|
100,113
|
|
163,570
|
|
Other non-current
liabilities
|
56,845
|
|
70,804
|
|
Total
liabilities
|
156,958
|
|
234,374
|
|
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; 32,289 and 31,897 shares
issued and outstanding at June 29, 2024 and December 30,
2023, respectively
|
3
|
|
3
|
|
Additional paid-in
capital
|
39,232
|
|
16,973
|
|
Retained
earnings
|
1,054,048
|
|
1,192,731
|
|
Accumulated other
comprehensive loss
|
(254)
|
|
(1,025)
|
|
Total stockholders'
equity
|
1,093,029
|
|
1,208,682
|
|
Total liabilities and
stockholders' equity
|
$
1,249,987
|
|
$
1,443,056
|
|
Silicon Laboratories
Inc.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Operating
Activities
|
|
|
|
|
Net income
(loss)
|
$
(138,683)
|
|
$
24,923
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
Depreciation of
property and equipment
|
13,152
|
|
12,441
|
|
Amortization of other
intangible assets
|
12,160
|
|
12,904
|
|
Amortization of debt
issuance costs
|
—
|
|
960
|
|
Stock-based
compensation expense
|
29,455
|
|
31,377
|
|
Equity-method
loss
|
—
|
|
1,090
|
|
Deferred income
taxes
|
29,784
|
|
(6,403)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(11,918)
|
|
(26,819)
|
|
Inventories
|
28,123
|
|
(45,064)
|
|
Prepaid expenses and
other assets
|
20,723
|
|
32,963
|
|
Accounts
payable
|
(19,341)
|
|
(30,003)
|
|
Other current
liabilities and income taxes
|
(13,624)
|
|
(26,220)
|
|
Deferred revenue and
returns liability
|
1,206
|
|
4,326
|
|
Other non-current
liabilities
|
(6,703)
|
|
(1,975)
|
|
Net cash used in
operating activities
|
(55,666)
|
|
(15,500)
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of marketable
securities
|
(17,700)
|
|
(81,427)
|
|
Sales of marketable
securities
|
34,538
|
|
339,555
|
|
Maturities of
marketable securities
|
97,458
|
|
171,691
|
|
Purchases of property
and equipment
|
(5,577)
|
|
(13,462)
|
|
Proceeds from sale of
equity investment
|
12,382
|
|
—
|
|
Purchases of other
assets
|
—
|
|
(215)
|
|
Net cash provided by
investing activities
|
121,101
|
|
416,142
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Proceeds from revolving
line of credit
|
—
|
|
80,000
|
|
Payments on
debt
|
(45,000)
|
|
(536,124)
|
|
Repurchases of common
stock
|
—
|
|
(201,095)
|
|
Payment of taxes
withheld for vested stock awards
|
(15,213)
|
|
(16,310)
|
|
Proceeds from the
issuance of common stock
|
8,108
|
|
7,785
|
|
Net cash used in
financing activities
|
(52,105)
|
|
(665,744)
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
13,330
|
|
(265,102)
|
|
Cash and cash
equivalents at beginning of period
|
227,504
|
|
499,915
|
|
Cash and cash
equivalents at end of period
|
$
240,834
|
|
$
234,813
|
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SOURCE Silicon Labs
