Click here to close now.



Welcome!

Microsoft Cloud Authors: Jayaram Krishnaswamy, Dana Gardner, David Bermingham, Pat Romanski, Adine Deford

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
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...