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Silicon Labs Announces Second Quarter 2014 Results

July 29, 2014



ENP Newswire - 29 July 2014

Release date- 25072014 - AUSTIN, Texas - Silicon Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits reported financial results for its second quarter ended June 28, 2014.

Revenue in the second quarter exceeded the top end of guidance and established a new record at $154.9 million, which included $5.0 million of patent sale revenue, up from $145.7 million as reported in the first quarter. Financial Highlights On a GAAP basis:

Gross margin was 63.7 percent

R&D expenses were $41.8 million

SG&A expenses were $36.0 million

Operating income as a percentage of revenue was 13.4 percent

Diluted earnings per share were $0.32

On a non-GAAP basis:

Gross margin was 64.1 percent

R&D expenses were $34.4 million

SG&A expenses were $31.3 million

Operating income was 21.6 percent

Diluted earnings per share were $0.58

Business Highlights

Broad-based revenue established a new record at $79.7 million, up 10 percent sequentially.

Broadcast revenue was $50.5 million for the quarter, which included $5.0 million from a patent sale. The patent sale revenue resulted from the acceleration of a royalty arrangement and was not forecasted.

Access revenue also exceeded expectations at $24.7 million.

Product Highlights

Introduced a new family of ultra-low-power capacitive sensing MCUs, the C8051F97x MCU family, offering fast and accurate capacitive touch control technology backed by Silicon Labs'Simplicity Studio development ecosystem.

Launched a new 32-bit hardware and firmware development kit that simplifies the process of developing 'Made for iPod/iPhone/iPad' (MFi) accessories and accelerates time to market for MFi accessory developers.

Announced a comprehensive Wireless M-Bus software solution that simplifies the process of adding wireless connectivity to smart metering systems while enabling extended battery life.

Joined other industry leaders to form the Thread Group, leading the development of the next generation of IP-based wireless mesh networking for the Connected Home.

Won an EDN China Innovation Award in the category of 'Innovation Excellence: Leading Technologies' for the EFM32 Gecko family.

Business Outlook

The company expects revenue in the third quarter to be in the range of $153 million to $157 million and expects to establish another record in its Broad-based products. Third quarter diluted earnings per share are expected to be between $0.18 and $0.24 on a GAAP basis and between $0.45 and $0.51 on a non-GAAP basis.

'We are very pleased with our strong second quarter results, including record revenue in our Broad-based products,' said Tyson Tuttle, CEO of Silicon Labs. 'We are benefitting from our multi-year investment strategy for the IoT and Internet Infrastructure and realizing meaningful revenue growth.'

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.

Contact:

Jalene Hoover

Silicon Labs

Tel: +1-512-428-1610

Email: Jalene.Hoover@silabs.com


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Source: ENP Newswire


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