Welcome!

Microsoft Cloud Authors: Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog, Liz McMillan

News Feed Item

Silicon Labs Announces Fourth Quarter and Fiscal 2013 Results

Silicon Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported financial results for its fourth quarter and fiscal year ended Dec. 28, 2013. Revenue in the fourth quarter was $146.2 million, a slight decrease from the $146.9 million reported in the third quarter. Revenue for fiscal 2013 was a record $580.1 million, compared with $563.3 million in 2012.

Q4 Financial Highlights

On a GAAP basis:

  • Gross margins increased sequentially to 60.6 percent
  • R&D investment increased sequentially to $42.2 million
  • SG&A expenses declined sequentially to $32.3 million
  • Operating income increased sequentially to 9.7 percent of revenue
  • Diluted earnings per share increased sequentially to $0.24

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 table below):

  • Gross margins increased sequentially to 61.2 percent
  • R&D expenses increased sequentially to $34.5 million
  • SG&A expenses declined sequentially to $27.7 million
  • Operating income increased sequentially to 18.7 percent
  • Diluted earnings per share increased sequentially to $0.49

Business Highlights

  • Broad-based revenue was $72.4 million, reflecting a record quarter in microcontrollers and wireless offset by lower than expected revenue for timing due to general weakness in the telecom infrastructure market.
  • Broadcast outperformed expectations in the fourth quarter with revenue of $49.6 million.
  • Access grew slightly in the fourth quarter, exceeding expectations, with revenue of $24.3 million.
  • During the fourth quarter, the company announced several important mixed-signal products for Internet of Things applications, including the energy-friendly EFM32™ Zero Gecko MCU family, the ultra-low-power Si106x/8x wireless MCU family, and the next-generation Si701x/2x relative humidity and temperature sensor family.

“We are very pleased with our performance in the fourth quarter, as our microcontroller and wireless products delivered another record revenue quarter, and we experienced better than expected revenue from Broadcast and Access products,” said Tyson Tuttle, CEO of Silicon Labs. “Revenue for 2013 was a record for the company, and we believe we are entering 2014 well positioned in growth markets such as the Internet of Things, smart energy and Internet infrastructure.”

Business Outlook

The company expects revenue in the first quarter to be in the range of $142 million to $146 million. The company expects first quarter earnings per share to be between $0.14 and $0.18 on a GAAP basis and between $0.40 and $0.44 on a non-GAAP basis.

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 39717387. The replay will be available through March 8.

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 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 Income

(In thousands, except per share data)

(Unaudited)

 
Three Months Ended Year Ended

December 28,
2013

 

December 29,
2012

December 28,
2013

 

December 29,
2012

Revenues $ 146,236 $ 152,461 $ 580,087 $ 563,294
Cost of revenues   57,638     58,835     227,183     225,277  
Gross margin 88,598 93,626 352,904 338,017
Operating expenses:
Research and development 42,168 36,009 157,799 137,952
Selling, general and administrative   32,276     32,315     130,795     114,390  
Operating expenses   74,444     68,324     288,594     252,342  
Operating income 14,154 25,302 64,310 85,675
Other income (expense):
Interest income 237 235 853 1,338
Interest expense (807 ) (850 ) (3,293 ) (1,149 )
Other income (expense), net   118     (323 )   157     484  
Income before income taxes 13,702 24,364 62,027 86,348
Provision for income taxes   3,060     5,669     12,208     22,800  
 

Net income

$ 10,642   $ 18,695   $ 49,819   $ 63,548  
 
Earnings per share:
Basic $ 0.25 $ 0.45 $ 1.17 $ 1.51
Diluted $ 0.24 $ 0.44 $ 1.14 $ 1.47
 
Weighted-average common shares outstanding:
Basic 42,972 41,705 42,715 42,136
Diluted 43,847 42,641 43,537 43,106
 
 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

   

Non-GAAP Income
Statement Items

Three Months Ended
December 28, 2013

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 $ 146,236
 
Gross margin 88,598 60.6 % $ 166 $ 390 $ -- $ 400 $ 89,554 61.2 %
 
Research and

development

42,168 28.8 % 3,979 3,217 447 --

34,525

23.6 %
 
Selling, general and

administrative

32,276

22.1

%

4,351 729 895

(1,384

)

27,685

18.9 %
 
Operating income 14,154 9.7 % 8,496 4,336 1,342 (984 ) 27,344 18.7 %
 
                             

Non-GAAP Diluted
Earnings Per Share

Three Months Ended
December 28, 2013

 

GAAP
Measure

Stock
Compensation
Expense

Intangible
Asset
Amortization

Termination
Costs

Acquisition
Related
Items

Non-
GAAP
Measure

Net income $ 10,642 $ 7,685 $ 2,986 $ 1,179 $ (1,096 ) $ 21,396
 
Diluted shares outstanding

 

43,847 -- -- -- -- 43,847
 
Diluted earnings per share $ 0.24 $ 0.49
 
 

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

     
Business Outlook

Three Months Ending
March 29, 2014

High   Low
Estimated GAAP diluted earnings per share $ 0.18 $ 0.14
 
Estimated non-GAAP charges   0.26   0.26
 
Estimated non-GAAP diluted earnings per share $ 0.44 $ 0.40
   
 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

December 28,
2013

December 29,
2012

Assets
Current assets:
Cash and cash equivalents $ 95,800 $ 105,426
Short-term investments 179,593 176,565

Accounts receivable, net of allowances for doubtful accounts of

$797 at December 28, 2013 and $670 at December 29, 2012

72,124 78,023
Inventories 45,271 49,579
Deferred income taxes 18,878 16,652
Prepaid expenses and other current assets   47,651     41,437  
Total current assets 459,317 467,682
Long-term investments 10,632 11,369
Property and equipment, net 132,445 135,271
Goodwill 228,781 130,265
Other intangible assets, net 131,593 90,750
Other assets, net   28,382     36,629  
Total assets $ 991,150   $ 871,966  
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 22,126 $ 29,622
Current portion of long-term debt 7,500 5,000
Accrued expenses 45,975 40,410
Deferred income on shipments to distributors 30,853 30,259
Income taxes   2,693     1,087  
Total current liabilities 109,147 106,378
Long-term debt 87,500 95,000
Other non-current liabilities   55,941     20,615  
Total liabilities 252,588 221,993
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;

42,779 and 41,879 shares issued and outstanding at

December 28, 2013 and December 29, 2012, respectively

4 4
Additional paid-in capital 48,630 10,122
Retained earnings 690,612 640,793
Accumulated other comprehensive loss   (684 )   (946 )
Total stockholders' equity   738,562     649,973  
Total liabilities and stockholders' equity $ 991,150   $ 871,966  
 
 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 
Year Ended

December 28,
2013

 

December 29,
2012

Operating Activities
Net income $ 49,819 $ 63,548
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment 13,491 13,621
Net gain on the purchase of property and equipment -- (8,457 )
Amortization of other intangible assets and other assets 15,911 14,154
Impairment of long-lived assets -- 708
Stock-based compensation expense 30,800 31,176
Income tax benefit (detriment) from employee stock-based awards (606 ) 1,827
Excess income tax benefit from employee stock-based awards (290 ) (1,294 )
Deferred income taxes 3,319 4,725
Changes in operating assets and liabilities:
Accounts receivable 8,972 (20,743 )
Inventories 5,588 (13,056 )
Prepaid expenses and other assets (2,514 ) 10,629
Accounts payable (3,979 ) 7,217
Accrued expenses (3,169 ) (3,812 )
Deferred income on shipments to distributors (2,381 ) 4,623
Income taxes   5,189     (7,816 )
Net cash provided by operating activities 120,150 97,050
 
Investing Activities
Purchases of available-for-sale investments (213,883 ) (192,450 )
Proceeds from sales and maturities of available-for-sale investments 210,824 235,517
Purchases of property and equipment (10,472 ) (102,043 )
Purchases of other assets (5,939 ) (8,508 )
Acquisitions of businesses, net of cash acquired   (86,441 )   (71,852 )
Net cash used in investing activities (105,911 ) (139,336 )
 
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes 15,301 15,148
Excess income tax benefit from employee stock-based awards 290 1,294
Repurchases of common stock (26,022 ) (62,019 )
Proceeds from issuance of long-term debt, net -- 98,325
Payments on debt   (13,434 )   --  
Net cash provided by (used in) financing activities (23,865 ) 52,748
 
Increase (decrease) in cash and cash equivalents (9,626 ) 10,462
Cash and cash equivalents at beginning of period   105,426     94,964  
Cash and cash equivalents at end of period $ 95,800   $ 105,426  

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.

@ThingsExpo Stories
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...