SYS-CON MEDIA Authors: Srinivasan Sundara Rajan, Pat Romanski, Elizabeth White, Yeshim Deniz, Andreas Grabner

News Feed Item

Silicon Labs Announces First Quarter 2014 Results

Silicon Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported financial results for its first quarter ended March 29, 2014. Revenue in the first quarter was at the top end of guidance at $145.7 million, compared with $146.2 million reported in the fourth quarter. Additionally, the company reported excellent performance on its balance sheet with strong cash flows and effective working capital management.

Q1 Financial Highlights

On a GAAP basis:

  • Gross margin was 59.8 percent
  • R&D expenses were $42.5 million
  • SG&A expenses were $34.6 million
  • Operating income as a percentage of revenue was 6.9 percent
  • Diluted earnings per share were $0.18

On a non-GAAP basis (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation tables below):

  • Gross margin was 60.2 percent
  • R&D expenses were $35.0 million
  • SG&A expenses were $28.5 million
  • Operating income was 16.6 percent
  • Diluted earnings per share were $0.42

Business Highlights

  • Broad-based revenue was $72.3 million, essentially flat sequentially, as expected.
  • Broadcast exceeded expectations with revenue of $50.7 million, including record revenue in video.
  • Access revenue decreased slightly, as expected, to $22.7 million.

Product Highlights

  • Introduced a new version of the Simplicity Studio™ development ecosystem supporting Silicon Labs’ MCU products in a single, unified platform, making the embedded design process easier, faster and more efficient.
  • Announced the expansion of Silicon Labs’ Ember® ZigBee® portfolio with the introduction of a new ARM®-based system-on-a-chip family that reduces the cost and complexity of deploying ZigBee solutions in smart metering and home automation applications.
  • Launched the industry’s first single-chip digital ultraviolet (UV) index sensor ICs designed to track UV sun exposure, heart rate and blood oxygen levels for wearable products such as smart watches and health and fitness trackers.
  • Acquired the full product portfolio and intellectual property of Silicon Valley-based Touchstone Semiconductor, an early-stage technology company and provider of low-power analog IC products targeting Internet of Things applications.

Business Outlook

The company expects revenue in the second quarter to be in the range of $147 million to $151 million. Second quarter diluted earnings per share are expected to be between $0.15 and $0.19 on a GAAP basis and between $0.43 and $0.47 on a non-GAAP basis. Both GAAP and non-GAAP estimates include an estimated $0.03 per share effect from litigation costs.

“We continue to strengthen our position as a leading supplier of silicon solutions for the Internet of Things,” said Tyson Tuttle, CEO of Silicon Labs. “We expect this momentum to drive record Broad-based revenue in the second quarter.”

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 simultaneously on Silicon Labs' website under Investor Relations (www.silabs.com). A replay will be available after the call at the same website listed above or by calling 1 (855) 859-2056 or (404) 537-3406 (international) and by entering 39717388. The replay will be available through May 29.

About Silicon Labs

Silicon Labs is an industry leader in the innovation of high-performance, analog-intensive, mixed-signal ICs. Developed by a world-class engineering team with unsurpassed expertise in mixed-signal design, Silicon Labs' diverse portfolio of patented semiconductor solutions offers customers significant advantages in performance, size and power consumption. For more information about Silicon Labs, please visit www.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: 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; dependence on a limited number of products and customers; intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing our distributors, manufacturers and subcontractors; 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 our 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, 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; conflict mineral risks 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 Silicon Labs logo, Simplicity Studio and Ember 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

March 29,
2014

 

March 30,
2013

Revenues $ 145,691 $ 145,375
Cost of revenues   58,586     58,003  
Gross margin 87,105 87,372
Operating expenses:
Research and development 42,485 37,582
Selling, general and administrative   34,611     29,153  
Operating expenses   77,096     66,735  
Operating income 10,009 20,637
Other income (expense):
Interest income 302 335
Interest expense (798 ) (842 )
Other income (expense), net   67     (52 )
Income before income taxes 9,580 20,078
Provision for income taxes   1,470     44  
 

Net income

$ 8,110   $ 20,034  
 
Earnings per share:
Basic $ 0.19 $ 0.47
Diluted $ 0.18 $ 0.46
 
Weighted-average common shares outstanding:
Basic 43,081 42,186
Diluted 44,056 43,110
 
 
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
   

Non-GAAP Income
Statement Items

Three Months Ended
March 29, 2014

GAAP
Measure

 

GAAP
Percent of
Revenue

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Termination
Costs

 

Acquisition
Related
Items

 

Non-GAAP
Measure

 

Non-
GAAP
Percent of
Revenue

Revenues $ 145,691
 
Gross margin 87,105 59.8 % $ 195 $ 390 $ -- $ -- $ 87,690 60.2 %
 
Research and

development

42,485 29.2 % 4,241 3,247 -- --

34,997

24.0 %
 
Selling, general and

administrative

34,611

23.7

%

4,841 729 (267 )

816

28,492

19.6 %
 
Operating income 10,009 6.9 % 9,277 4,366 (267 ) 816 24,201 16.6 %
 
                               
Non-GAAP Diluted

Earnings Per Share

Three Months Ended
March 29, 2014

GAAP
Measure

Stock
Compensation
Expense

Intangible
Asset
Amortization

Termination
Costs

Acquisition
Related
Items

Release of
Unrecognized
Tax Benefits

Non-
GAAP
Measure

Net income $ 8,110 $ 7,966 $ 3,019 $ (199 ) $ 816 $ (1,292 ) $ 18,420

 

 

 

Diluted shares outstanding

 

44,056 -- -- -- -- -- 44,056
 
Diluted earnings per share $ 0.18 $ 0.42
 
 

Unaudited Forward-Looking Statements Regarding Business Outlook
(In thousands, except per share information)

     
Business Outlook

Three Months Ending
June 28, 2014

High   Low
Estimated GAAP diluted earnings per share $ 0.19 $ 0.15
 
Estimated non-GAAP charges   0.28   0.28
 
Estimated non-GAAP diluted earnings per share $ 0.47 $ 0.43
     
 
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
 

March 29,
2014

December 28,
2013

Assets
Current assets:
Cash and cash equivalents $ 128,323 $ 95,800
Short-term investments 194,765 179,593
Accounts receivable, net of allowances for doubtful accounts of

$767 at March 29, 2014 and $797 at December 28, 2013

64,672 72,124
Inventories 44,334 45,271
Deferred income taxes 15,203 18,878
Prepaid expenses and other current assets   40,214     47,651  
Total current assets 487,511 459,317
Long-term investments 10,997 10,632
Property and equipment, net 130,829 132,445
Goodwill 228,781 228,781
Other intangible assets, net 128,453 131,593
Other assets, net   23,482     28,382  
Total assets $ 1,010,053   $ 991,150  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 22,707 $ 22,126
Current portion of long-term debt 8,750 7,500
Accrued expenses 67,745 45,975
Deferred income on shipments to distributors 32,589 30,853
Income taxes   1,330     2,693  
Total current liabilities 133,121 109,147
Long-term debt 85,000 87,500
Other non-current liabilities   30,737     55,941  
Total liabilities 248,858 252,588
Commitments and contingencies
Stockholders' equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; no

shares issued and outstanding

-- --
Common stock – $0.0001 par value; 250,000 shares authorized;

43,433 and 42,779 shares issued and outstanding at

March 29, 2014 and December 28, 2013, respectively

4 4
Additional paid-in capital 62,883 48,630
Retained earnings 698,722 690,612
Accumulated other comprehensive loss   (414 )   (684 )
Total stockholders' equity   761,195     738,562  
Total liabilities and stockholders' equity $ 1,010,053   $ 991,150  
   
 
Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Three Months Ended

March 29,
2014

 

March 30,
2013

Operating Activities
Net income $ 8,110 $ 20,034
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment 3,290 3,297
Amortization of other intangible assets and other assets 4,491 2,840
Stock-based compensation expense 9,277 6,260
Income tax benefit (shortfall) from stock-based awards 45 (363 )
Excess income tax benefit from stock-based awards (235 ) (217 )
Deferred income taxes 6,784 7,521
Changes in operating assets and liabilities:
Accounts receivable 7,452 5,256
Inventories 1,083 (7,350 )
Prepaid expenses and other assets 14,266 4,620
Accounts payable 1,195 2,356
Accrued expenses (2,218 ) (4,330 )
Deferred income on shipments to distributors 1,736 (598 )
Income taxes   (8,324 )   (9,818 )
Net cash provided by operating activities 46,952 29,508
 
Investing Activities
Purchases of available-for-sale investments (43,366 ) (78,851 )
Proceeds from sales and maturities of available-for-sale investments 28,242 25,674
Purchases of property and equipment (1,673 ) (3,898 )
Purchases of other assets   (2,113 )   (1,228 )
Net cash used in investing activities (18,910 ) (58,303 )
 
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes 5,496 4,915
Excess income tax benefit from stock-based awards 235 217
Payments on debt   (1,250 )   (2,500 )
Net cash provided by financing activities   4,481     2,632  
 
Increase (decrease) in cash and cash equivalents 32,523 (26,163 )
Cash and cash equivalents at beginning of period   95,800     105,426  
Cash and cash equivalents at end of period $ 128,323   $ 79,263  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
“The year of the cloud – we have no idea when it's really happening but we think it's happening now. For those technology providers like Zentera that are helping enterprises move to the cloud - it's been fun to watch," noted Mike Loftus, VP Product Management and Marketing at Zentera Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
BMC Software plans to acquire assets of CDB Software, Inc., a mainframe data management company that has developed utilities for managing IBM DB2 databases with virtually no outage. Focusing on the availability of mission-critical applications is strategic for BMC as it continues to help its customers transform IT into a competitive advantage for their business. CDB's technology complements BMC's existing mainframe data management portfolio, which includes software utilities for DB2 administrat...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
Software AG and Wipro Ltd. have announced a joint solution platform for streaming analytics that provides real-time actionable intelligence for the Internet of Things (IoT) market. “The key to successfully addressing the IoT market is the ability to rapidly build and evolve apps that tap into, analyze and make smart decisions on fast, big data”, said John Bates, Global Head of Industry Solutions and CMO, Software AG. To address the huge market potential created by streaming analytics in conj...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
OneCloud Software has launched the OneCloud Partner Program. Responding to demand from prospective partners, the Program offers managed service providers (MSPs) and resellers the resources they need to grow their business with the OneCloud Recovery solution. OneCloud Recovery is an automated solution for disaster recovery/business continuity (DR/BC), which leverages Amazon Web Services as the disaster recovery site. “This is a tremendous opportunity with an innovative hybrid cloud-based DR pro...
Cloud Technology Partners on Wednesday announced it has been recognized by the Modern Infrastructure Impact Awards as one of the Best Amazon Web Services (AWS) Consulting Partners. Selected by the editors of TechTarget's SearchDataCenter.com, and by votes from customers and strategic channel partners, the companies acknowledged by the Modern Infrastructure Impact Awards represent the top providers of cloud consulting services for AWS including application migration, application development, inf...
MapR Technologies on Tuesday announced the availability of free Hadoop On-Demand Training for developers, analysts and administrators which represents a $50M in-kind contribution* to the broad Hadoop community. The Hadoop training program is a multi-course curriculum designed to expand worldwide adoption of Hadoop technology. The curriculum provides engaging and interactive video lessons, hands-on exercises, labs and quizzes, enabling professionals to acquire valuable Hadoop skills and knowledge...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Axios Systems on Tuesday announced it has selected CenturyLink Cloud as the hosting platform for Axios Systems’ IT Service Management (ITSM) solutions in Canada. CenturyLink, a global provider of communications and IT services, joins other leading technology providers across North America, Europe and APAC to help Axios’ international customers drive efficiencies and innovation across their service management provision. The arrangement with CenturyLink enables Axios to further strengthen its pres...
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.