.NET Authors: Jayaram Krishnaswamy, Sematext Blog, ITinvolve Blog, Aditya Banerjee, Pat Romanski

News Feed Item

Silicon Labs Announces Second Quarter 2014 Results

Silicon Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today 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 (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation tables below):

  • 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.”

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 39717389. The replay will be available through August 25.

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, the Silicon Labs logo and Simplicity Studio 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)


Three Months Ended Six Months Ended

June 28,


June 29,

June 28,


June 29,

Revenues $ 154,918 $ 141,543 $ 300,609 $ 286,918
Cost of revenues   56,255     52,770     114,841     110,773  
Gross margin 98,663 88,773 185,768 176,145
Operating expenses:
Research and development 41,844 37,387 84,329 74,969
Selling, general and administrative   36,017     32,357     70,628     61,510  
Operating expenses   77,861     69,744     154,957     136,479  
Operating income 20,802 19,029 30,811 39,666
Other income (expense):
Interest income 200 152 502 487
Interest expense (780 ) (831 ) (1,578 ) (1,673 )
Other income (expense), net   (6 )   114     61     62  
Income before income taxes 20,216 18,464 29,796 38,542
Provision for income taxes   5,937     5,852     7,407     5,896  

Net income

$ 14,279   $ 12,612   $ 22,389   $ 32,646  
Earnings per share:
Basic $ 0.33 $ 0.30 $ 0.52 $ 0.77
Diluted $ 0.32 $ 0.29 $ 0.51 $ 0.76
Weighted-average common shares outstanding:
Basic 43,462 42,552 43,271 42,370
Diluted 44,218 43,269 44,137 43,191

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)


Non-GAAP Income
Statement Items

Three Months Ended
June 28, 2014



Percent of










Percent of

Revenues $ 154,918
Gross margin 98,663 63.7 % $ 178 $ 390 $ -- $ 99,231 64.1 %
Research and


41,844 27.0 % 4,327 3,104 --


22.2 %
Selling, general and





4,777 729




20.3 %
Operating income 20,802 13.4 % 9,282 4,223 (822 ) 33,485 21.6 %

Non-GAAP Diluted
Earnings Per Share

Three Months Ended
June 28, 2014







Net income $ 14,279 $ 8,695 $ 3,388 $ (822 ) $ 25,540
Diluted shares outstanding 44,218 -- -- -- 44,218
Diluted earnings per share $ 0.32 $ 0.58

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

Business Outlook

Three Months Ending
September 27, 2014

High   Low
Estimated GAAP diluted earnings per share $ 0.24 $ 0.18
Estimated non-GAAP charges   0.27   0.27
Estimated non-GAAP diluted earnings per share $ 0.51 $ 0.45

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)



June 28,

December 28,

Current assets:
Cash and cash equivalents $ 93,290 $ 95,800
Short-term investments 235,645 179,593
Accounts receivable, net of allowances for doubtful accounts of

$788 at June 28, 2014 and $797 at December 28, 2013

69,042 72,124
Inventories 45,557 45,271
Deferred income taxes 17,658 18,878
Prepaid expenses and other current assets   47,785     47,651  
Total current assets 508,977 459,317
Long-term investments 10,993 10,632
Property and equipment, net 129,357 132,445
Goodwill 228,781 228,781
Other intangible assets, net 124,106 131,593
Other assets, net   22,251     28,382  
Total assets $ 1,024,465   $ 991,150  
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 24,745 $ 22,126
Current portion of long-term debt 10,000 7,500
Accrued expenses 65,672 45,975
Deferred income on shipments to distributors 33,437 30,853
Income taxes   896     2,693  
Total current liabilities 134,750 109,147
Long-term debt 82,500 87,500
Other non-current liabilities   29,610     55,941  
Total liabilities 246,860 252,588
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;

43,406 and 42,779 shares issued and outstanding at

June 28, 2014 and December 28, 2013, respectively

4 4
Additional paid-in capital 65,199 48,630
Retained earnings 713,001 690,612
Accumulated other comprehensive loss   (599 )   (684 )
Total stockholders' equity   777,605     738,562  
Total liabilities and stockholders' equity $ 1,024,465   $ 991,150  

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)


Six Months Ended

June 28,


June 29,

Operating Activities
Net income $ 22,389 $ 32,646
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment 6,427 6,634
Amortization of other intangible assets and other assets 8,839 5,635
Stock-based compensation expense 18,559 13,684
Income tax benefit (shortfall) from stock-based awards 377 (489 )
Excess income tax benefit from stock-based awards (589 ) (243 )
Deferred income taxes 4,665 9,277
Changes in operating assets and liabilities:
Accounts receivable 3,082 9,388
Inventories (123 ) (1,028 )
Prepaid expenses and other assets 3,394 5,023
Accounts payable 3,846 (2,271 )
Accrued expenses (4,902 ) (6,013 )
Deferred income on shipments to distributors 2,584 293
Income taxes   (5,130 )   (6,439 )
Net cash provided by operating activities 63,418 66,097
Investing Activities
Purchases of available-for-sale investments (117,744 ) (121,994 )
Proceeds from sales and maturities of available-for-sale investments 61,803 146,870
Purchases of property and equipment (3,339 ) (6,498 )
Purchases of other assets   (2,726 )   (2,438 )
Net cash provided by (used in) investing activities (62,006 ) 15,940
Financing Activities
Proceeds from issuance of common stock, net of shares withheld for taxes 8,943 9,512
Excess income tax benefit from stock-based awards 589 243
Repurchases of common stock (10,954 ) --
Payments on debt   (2,500 )   (3,750 )
Net cash provided by (used in) financing activities   (3,922 )   6,005  
Increase (decrease) in cash and cash equivalents (2,510 ) 88,042
Cash and cash equivalents at beginning of period   95,800     105,426  
Cash and cash equivalents at end of period $ 93,290   $ 193,468  

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
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...