(MENAFNEditorial) AUSTIN, Texas, April 25, 2018 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), a leading provider of silicon, software and solutions for a smarter, more connected world, today reported financial results for its first quarter ended March 31, 2018. Revenue in the first quarter exceeded the high end of guidance at $205 million, up from $201 million in the fourth quarter, and establishing a new all-time record. First quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.60 and $0.87, respectively.
"We are very pleased to report outstanding first quarter 2018 financial performance, including 15 percent Q1 year-on-year revenue growth," said Tyson Tuttle, CEO of Silicon Labs. "We are excited about the acquisition of Z-Wave, and believe we have the right strategy, products and team in place to achieve our growth objectives. Together, we will continue to deliver differentiated solutions to address large, sustainable, high-quality growth markets."
First Quarter Financial Highlights
Infrastructure revenue increased to $49 million, up 26% sequentially and 37% year-on-year. IoT revenue declined to $103 million, down 6% sequentially and up 17% year-on-year. Broadcast revenue was $36 million, up less than 1% sequentially and down 3% year-on-year. Access revenue increased to $17 million, up 2% sequentially and down 6% year-on-year. On a GAAP basis:
GAAP gross margin was 60.5%. GAAP R & D expenses were $55 million. GAAP SG & A expenses were $46 million. GAAP operating income as a percentage of revenue was 11.5%. GAAP diluted earnings per share were $0.60. On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, non-cash interest expense on convertible notes, and certain other items as set forth in the reconciliation tables below:
Non-GAAP gross margin was 60.6%. Non-GAAP R & D expenses were $44 million. Non-GAAP SG & A expenses were $37 million. Non-GAAP operating income as a percentage of revenue was 20.9%. Non-GAAP diluted earnings per share were $0.87. Product Highlights
Introduced the first low-power Wi-Fi® portfolio, including WF200 transceivers and WFM200 modules, designed specifically for the IoT. Released the industry's first comprehensive network performance results based on large-scale testing of Zigbee®, Thread and Bluetooth® mesh software. Expanded the EFM32™ Tiny Gecko MCU family to provide a cost-effective, ultra-low-power solution for connected devices requiring long battery life. Launched the Si3406x and Si3404 Power over Ethernet (PoE) Powered Device (PD) families delivering best-in-class integration and power conversion efficiency for a wide range of IoT applications. Introduced new low-power PCI Express® Si532xx clock buffers providing low-jitter clock distribution for data center, industrial, communications and consumer designs. Business Highlights
Completed the asset purchase of Sigma Designs' Z-Wave business for $240 million on April 18, 2018, expanding Silicon Labs' leading position in mesh networking for the smart home. Won VDC Research's Embeddy Award for Best of Show in the hardware category for the WFx200 Wi-Fi portfolio at the 2018 Embedded World conference. Business Outlook The company expects revenue in the second quarter to be in the range of $211 million to $217million, and also estimates the following:
On a GAAP basis:
GAAP gross margin at approximately 58.5%. GAAP operating expenses at approximately $111.0 million. GAAP effective tax rate at 0.0%. GAAP diluted earnings per share between $0.23 and $0.29. On a non-GAAP basis, and excluding the impact of stock compensation, amortization of acquired intangible assets, non-cash interest expense on convertible notes, and certain other items as set forth in the reconciliation tables below:
Non-GAAP gross margin at approximately 59.5%. Non-GAAP operating expenses at approximately $86.0 million. Non-GAAP effective tax rate at 11.0%. Non-GAAP diluted earnings per share between $0.81 and $0.87. 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 on Silicon Labs' website ( www.silabs.com ) under Investor Relations . 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 entering conference 88340291. The replay will be available through May 23, 2018.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB ) is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. Our world-class engineering team creates products focused on performance, energy savings, connectivity and simplicity. 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; cyber-attacks against our products and our networks; 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 "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.
CONTACT: Jalene Hoover, +1 (512) 428-1610,
Silicon Laboratories Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2018
April 1,
2017
Revenues $205,384
$179,028
Cost of revenues 81,147
73,867
Gross margin 124,237
105,161
Operating expenses:
Research and development 54,828
52,324
Selling, general and administrative 45,694
40,155
Operating expenses 100,522
92,479
Operating income 23,715
12,682
Other income (expense):
Interest income and other, net 3,202
576
Interest expense (4,883)
198
Income before income taxes 22,034
13,456
Provision (benefit) for income taxes (4,371)
(1,970)
Net income $ 26,405
$ 15,426
Earnings per share:
Basic $ 0.61
$ 0.37
Diluted $ 0.60
$ 0.36
Weighted-average common shares outstanding:
Basic 42,963
42,096
Diluted 43,918
43,030
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
Non-GAAP Income
Statement Items
Three Months Ended
March 31, 2018
GAAP
Measure
GAAP
Percent of
Revenue
Stock
Compensation
Expense
Intangible
Asset
Amortization
Acquisition
Related
Items
Non-GAAP
Measure
Non-GAAP
Percent of
Revenue
Revenues
$205,384
Gross margin
124,237
60.5%
$ 296
$ --
$ --
$124,533
60.6%
Research and development
54,828
26.7%
5,769
4,787
--
44,272
21.6%
Selling, general and administrative
45,694
22.3%
6,127
1,515
700
37,352
18.1%
Operating income
23,715
11.5%
12,192
6,302
700
42,909
20.9%
Non-GAAP
Earnings Per Share
Three Months Ended
March 31, 2018
GAAP
Measure
Stock
Compensation
Expense*
Intangible
Asset
Amortization*
Acquisition
Related
Items*
Termination
Costs,
Impairments
And Fair Value
Adjustments*
Non-cash
Interest
Expense*
Income Tax
Adjustments
Non-GAAP
Measure
Net income
$26,405
$12,192
$6,302
$700
$(985)
$2,754
$(9,045)
$38,323
Diluted shares outstanding
43,918
43,918
Diluted earnings per share
$ 0.60
$ 0.87
* Represents pre-tax amounts
Unaudited Forward-Looking Statements Regarding Business Outlook
(In millions, except per share data)
Business Outlook
Three Months Ending
June 30, 2018
GAAP Measure
Non-GAAP Adjustments
Non-GAAP Measure
Gross margin
58.5%
1.0%
59.5%
Operating expenses
$111
$25
$86
Effective tax rate
0.0%
11.0%
11.0%
Diluted earnings per share - low
$0.23
$0.58
$0.81
Diluted earnings per share - high
$0.29
$0.58
$0.87
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
March 31,
2018
December 30,
2017
Assets
Current assets:
Cash and cash equivalents $ 342,272
$ 269,366
Short-term investments 417,867
494,657
Accounts receivable, net 75,122
71,367
Inventories 76,505
73,132
Prepaid expenses and other current assets 64,555
39,120
Total current assets 976,321
947,642
Property and equipment, net 129,894
127,682
Goodwill 288,227
288,227
Other intangible assets, net 76,716
83,144
Other assets, net 94,837
88,387
Total assets $1,565,995
$1,535,082
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 50,068
$ 38,851
Deferred revenue and returns liability 25,426
--
Deferred income on shipments to distributors --
50,115
Other current liabilities 69,310
73,359
Total current liabilities 144,804
162,325
Convertible debt 345,049
341,879
Other non-current liabilities 75,567
77,862
Total liabilities 565,420
582,066
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; 43,227 and 42,707 shares issued and outstanding at
March 31, 2018 and December 30, 2017, respectively 4
4
Additional paid-in capital 98,396
102,862
Retained earnings 904,160
851,307
Accumulated other comprehensive loss (1,985)
(1,157)
Total stockholders' equity 1,000,575
953,016
Total liabilities and stockholders' equity $1,565,995
$1,535,082
Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2018
April 1,
2017
Operating Activities
Net income $ 26,405
$ 15,426
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment 3,704
3,596
Amortization of other intangible assets and other assets 6,427
6,752
Amortization of debt discount and debt issuance costs 3,169
869
Stock-based compensation expense 12,192
10,486
Deferred income taxes (4,780)
(4,059)
Changes in operating assets and liabilities:
Accounts receivable (3,307)
(1,252)
Inventories (3,368)
(1,636)
Prepaid expenses and other assets (17,169)
6,708
Accounts payable 13,030
5,565
Other current liabilities and income taxes (9,643)
(2,944)
Deferred income, deferred revenue and returns liability (2,599)
4,038
Other non-current liabilities (1,849)
(1,536)
Net cash provided by operating activities 22,212
42,013
Investing Activities
Purchases of available-for-sale investments (52,821)
(267,777)
Sales and maturities of available-for-sale investments 128,975
25,595
Purchases of property and equipment (4,102)
(4,543)
Purchases of other assets (4,698)
(1,446)
Acquisition of business, net of cash acquired --
(13,658)
Net cash provided by (used in) investing activities 67,354
(261,829)
Financing Activities
Proceeds from issuance of long-term debt, net --
390,000
Payments on debt --
(72,500)
Payment of taxes withheld for vested stock awards (17,871)
(13,553)
Proceeds from the issuance of common stock 1,211
162
Net cash provided by (used in) financing activities (16,660)
304,109
Increase in cash and cash equivalents 72,906
84,293
Cash and cash equivalents at beginning of period 269,366
141,106
Cash and cash equivalents at end of period $342,272
$225,399
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SOURCE Silicon Labs
Related Links
http://www.silabs.com
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