Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

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
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.