July 25--Shares of Austin-based Silicon Laboratories Inc. tumbled Thursday after the company missed analysts' expectations for the second quarter.
Shares dropped by $5.42, or 12 percent, in active morning trading after the company reported earnings.
The chipmaker posted a profit of $12.6 million, or 29 cents a share, on revenue of $141.5 million. That compared with a profit of $20.5 million, or 47 cents a share, on revenue of $135.7 million for the same quarter a year earlier.
Analysts had expected revenue of $143.6 million and earnings per share of 50 cents.
CEO Tyson Tuttle was upbeat about the company's future, noting the completion of Silicon Labs' acquisition of Energy Micro, a highly regarded Norwegian company that is a leading designer of low-power microcontroller chips.
Silicon Labs agreed to pay $115 million in cash for Energy Micro, which has 85 employees and is expected to contribute about $7 million in revenue to Silicon Labs in the second half of this year.
Analysts have said the acquisition will bolster Silicon Labs' entry into the market for low-power microcontrollers that are compatible with the basic designs by ARM Holdings, the leading architect for technologies used in most smartphones and tablet devices.
Both companies have set their sights on developing new families of chips designed to run on a growing-array of battery-powered products that can connect to the Internet. That array of products, which includes smart energy devices, home automation, security and portable electronics, is known in the electronics industry as the Internet of Things.
"This was our largest acquisition in the history of the company, and it brought 250 new products to our portfolio," Tuttle said. "This really provides a great path for us going forward, and it enables us to compete with the largest semiconductor companies on equal or better footing. We feel like the company has never been better positioned for growth."
Silicon Labs makes a range of chips that employ digital and analog circuitry and are used in markets that include audio, automotive, broadcast, communications, computing, consumer electronics and industrial systems.
The company has about 1,000 employees worldwide, with about 60 percent of them based in Austin.
Silicon Labs said it expects revenue for the third quarter to be in the range of $144 to $149 million.
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