Welcome!

Microsoft Cloud Authors: Janakiram MSV, John Katrick, Yeshim Deniz, David H Deans, Andreas Grabner

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)

(Unaudited)

 
Three Months Ended Six Months Ended

June 28,
2014

 

June 29,
2013

June 28,
2014

 

June 29,
2013

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

GAAP
Measure

 

GAAP
Percent of
Revenue

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Acquisition
Related
Items

 

Non-
GAAP
Measure

 

Non-GAAP
Percent of
Revenue

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

development

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

34,413

22.2 %
 
Selling, general and

administrative

36,017

23.3

%

4,777 729

(822

)

31,333

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

 

GAAP
Measure

Stock
Compensation
Expense

Intangible
Asset
Amortization

Acquisition
Related
Items

Non-
GAAP
Measure

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)

(Unaudited)

 

June 28,
2014

December 28,
2013

Assets
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)

(Unaudited)

 
Six Months Ended

June 28,
2014

 

June 29,
2013

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
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
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. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo 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 ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...