Strong Growth from Broadcast and Broad-based Products
AUSTIN, Texas--(BUSINESS WIRE)--
Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today reported
a seven percent sequential increase in first quarter revenue to $119.6
million due to strength in its broadcast and broad-based product lines.
Financial Highlights
Revenue returned to growth in the first quarter, countering typical
seasonal weakness in consumer markets with strong new product cycles.
During the quarter, the company completed the acquisition of
SpectraLinear, a timing IC provider, and GAAP results include
approximately $11.7 million in charges related to the acquisition, as
well as typical non-cash stock compensation charges. GAAP gross margin
was impacted by product mix as well as $1.1 million in acquisition
charges, resulting in 60.3 percent gross margin for the first quarter.
Operating expenses included $5.1 million in acquisition-related charges
and ended the quarter at $35.4 million in R&D investment and $31.9
million in SG&A expense. This resulted in a fully diluted GAAP loss of
four cents per share.
The following non-GAAP results exclude the impact of acquisition-related
charges and stock compensation expense. Non-GAAP gross margin was 61.6
percent for the quarter, down sequentially as anticipated due to product
mix. Operating expenses increased only modestly, with R&D at $29.7
million and SG&A about flat at $23.2 million. Fully diluted non-GAAP
earnings per share were better than expected at $0.40. The reconciling
charges are set forth in the financial measures table included below.
Business Highlights
The company's better than seasonal performance was driven by an
aggressive ramp of its innovative silicon TV tuner into iDTVs by five
top TV makers during the quarter. The company's timing products also
achieved record revenue again which, when combined with strong growth in
MCU products, enabled high single-digit sequential growth in the
broad-based product category. Record design wins and expanding
portfolios in both timing and MCUs created market share momentum at both
existing and new customers.
"The improving complexion of our revenue base, and the momentum we
currently have with our bookings and design wins have so far outweighed
the industry-wide concerns that have developed following the tragedy in
Japan," said Necip Sayiner, president and CEO of Silicon Laboratories.
"We continue to have confidence in the annual growth targets we set in
January and view the Q1 results as strong progress towards those goals."
The company guided revenue for the second quarter in the range of $124
to $130 million.
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 Laboratories' 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 (800) 642-1687 or +1 (706) 645-9291
(international) and by entering 59263865. The replay will be available
through May 11, 2011.
About Silicon Laboratories Inc.
Silicon Laboratories Inc. is a leading designer of high-performance,
analog-intensive, mixed-signal integrated circuits (ICs) for a broad
range of applications. Silicon Laboratories' diverse portfolio of highly
integrated, patented solutions is developed by a world-class engineering
team with expertise in cutting-edge mixed-signal design. The company has
design, engineering, marketing, sales and applications offices
throughout North America, Europe and Asia. For more information about
Silicon Laboratories, please visit www.silabs.com.
Forward-Looking Statements
This press release contains forward-looking statements based on Silicon
Laboratories' current expectations. The words "believe," "estimate,"
"expect," "intend," "anticipate," "plan," "project," "will" and similar
phrases as they relate to Silicon Laboratories are intended to identify
such forward-looking statements. These forward-looking statements
reflect the current views and assumptions of Silicon Laboratories 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
Laboratories may not be able to maintain its historical growth;
quarterly fluctuations in revenues and operating results; volatile stock
price; average selling prices of products may decrease significantly and
rapidly; difficulties developing new products that achieve market
acceptance; dependence on a limited number of products and customers;
intellectual property litigation risks; inventory-related risks; risks
associated with acquisitions; difficulties managing international
activities; difficulties managing our manufacturers and subcontractors;
risks that Silicon Laboratories may not be able to manage strains
associated with its growth; credit risks associated with our accounts
receivable; dependence on key personnel; risks associated with
divestitures; geographic concentration of manufacturers, assemblers,
test service providers and customers in Asia that subjects Silicon
Laboratories' business and results of operations to risks of natural
disasters, epidemics, war and political unrest; the competitive and
cyclical nature of the semiconductor industry and other factors that are
detailed in Silicon Laboratories' filings with the SEC. Silicon
Laboratories disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
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.
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Silicon Laboratories Inc.
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Condensed Consolidated Statements of Operations
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(In thousands, except per share data)
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(Unaudited)
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Three Months Ended
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April 2,
2011
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April 3,
2010
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Revenues
|
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$
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119,636
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$
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126,719
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|
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Cost of revenues
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47,478
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43,129
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Gross margin
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72,158
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83,590
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Operating expenses:
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Research and development
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35,359
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29,922
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Selling, general and administrative
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31,860
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28,003
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Operating expenses
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67,219
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57,925
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Operating income
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4,939
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25,665
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Other income (expense):
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Interest income
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571
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666
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Interest expense
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(5
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)
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(23
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)
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Other income (expense), net
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209
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(297
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)
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Income before income taxes
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5,714
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26,011
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Provision for income taxes
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7,674
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4,932
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Net income (loss)
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$
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(1,960
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)
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$
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21,079
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Earnings (loss) per share:
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Basic
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$
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(0.04
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)
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$
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0.46
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Diluted
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$
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(0.04
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)
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$
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0.44
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Weighted-average common shares outstanding:
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Basic
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44,269
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45,816
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Diluted
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44,269
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47,926
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Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
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(In thousands, except per share data)
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Non-GAAP Income Statement
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Three Months Ended
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Items
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April 2, 2011
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GAAP
Measure
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GAAP
Percent of
Revenue
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Stock
Compensation
Expense
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Acquisition
Related Costs
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Non-GAAP
Measure
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Non-GAAP
Percent of
Revenue
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Revenues
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$
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119,636
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Gross margin
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72,158
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60.3
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%
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$
|
338
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$
|
1,149
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|
|
$
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73,645
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61.6
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%
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Research and development
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35,359
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29.6
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%
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3,994
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1,618
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|
|
29,747
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24.9
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%
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Selling, general and
administrative
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31,860
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26.6
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%
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5,141
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|
3,526
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|
|
23,193
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19.4
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%
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|
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Operating income
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4,939
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|
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4.1
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%
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9,473
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6,293
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|
|
|
20,705
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17.3
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%
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|
|
|
|
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|
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Provision for income taxes
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7,674
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1,027
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(5,425
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)
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3,276
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Non-GAAP Diluted Earnings
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Three Months Ended
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Per Share
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April 2, 2011
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GAAP
Measure
|
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Stock
Compensation
Expense
|
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Acquisition
Related Costs
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Non-GAAP
Measure
|
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Net income (loss)
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$
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(1,960
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)
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$
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8,446
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$
|
11,718
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$
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18,204
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GAAP
Measure
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Dilutive Securities Excluded
Due to Net Loss
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Non-GAAP
Measure
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Diluted shares outstanding
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44,269
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1,776
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46,045
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Diluted earnings (loss) per share
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$
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(0.04
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)
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$
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0.40
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Silicon Laboratories Inc.
|
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Condensed Consolidated Balance Sheets
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(In thousands, except per share data)
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(Unaudited)
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April 2,
2011
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January 1,
2011
|
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Assets
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Current assets:
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Cash and cash equivalents
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$
|
118,496
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$
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138,567
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Short-term investments
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203,785
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227,295
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|
|
Accounts receivable, net of allowance for doubtful accounts of
$724 at April 2, 2011 and $772 at January 1, 2011
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58,493
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|
|
|
45,030
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Inventories
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|
|
41,057
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|
|
|
39,450
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|
|
Deferred income taxes
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|
|
|
9,461
|
|
|
|
9,140
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|
|
Prepaid expenses and other current assets
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|
|
39,922
|
|
|
|
34,447
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|
|
Total current assets
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|
|
471,214
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|
|
|
493,929
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|
|
Long-term investments
|
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|
|
16,965
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|
|
|
17,500
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|
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Property and equipment, net
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|
|
29,464
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|
|
|
29,945
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|
|
Goodwill
|
|
|
|
117,215
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|
|
|
112,296
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|
|
Other intangible assets, net
|
|
|
|
68,836
|
|
|
|
53,242
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|
|
Other assets, net
|
|
|
|
29,816
|
|
|
|
20,746
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|
|
Total assets
|
|
|
$
|
733,510
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|
|
$
|
727,658
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|
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|
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|
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Liabilities and Stockholders' Equity
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|
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Current liabilities:
|
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|
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|
|
Accounts payable
|
|
|
$
|
20,371
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|
|
$
|
24,433
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|
|
Accrued expenses
|
|
|
|
26,492
|
|
|
|
25,604
|
|
|
Deferred income on shipments to distributors
|
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|
|
28,896
|
|
|
|
26,127
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|
|
Income taxes
|
|
|
|
3,922
|
|
|
|
3,692
|
|
|
Total current liabilities
|
|
|
|
79,681
|
|
|
|
79,856
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|
|
Long-term obligations and other liabilities
|
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|
|
23,540
|
|
|
|
22,372
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|
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Total liabilities
|
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|
|
103,221
|
|
|
|
102,228
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|
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Commitments and contingencies
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Stockholders' equity:
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Preferred stock--$0.0001 par value; 10,000 shares authorized; no
shares issued and outstanding
|
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|
|
--
|
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|
|
--
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|
Common stock--$0.0001 par value; 250,000 shares authorized;
44,513 and 43,933 shares issued and outstanding at
April 2, 2011 and January 1, 2011, respectively
|
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|
|
4
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
|
56,534
|
|
|
|
49,947
|
|
|
Retained earnings
|
|
|
|
577,167
|
|
|
|
579,127
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(3,416
|
)
|
|
|
(3,648
|
)
|
|
Total stockholders' equity
|
|
|
|
630,289
|
|
|
|
625,430
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|
|
Total liabilities and stockholders' equity
|
|
|
$
|
733,510
|
|
|
$
|
727,658
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
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Condensed Consolidated Statements of Cash Flows
|
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(in thousands)
|
|
(Unaudited)
|
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|
|
|
|
|
Three Months Ended
|
|
|
|
|
April 2,
2011
|
|
April 3,
2010
|
|
Operating Activities
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(1,960
|
)
|
|
$
|
21,079
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|
|
Adjustments to reconcile net income (loss) to cash provided by (used
in) operating
activities:
|
|
|
|
|
|
|
Depreciation of property and equipment
|
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|
|
3,253
|
|
|
|
2,879
|
|
|
Amortization of other intangible assets and other assets
|
|
|
|
3,057
|
|
|
|
1,849
|
|
|
Stock-based compensation expense
|
|
|
|
9,473
|
|
|
|
10,256
|
|
|
Income tax benefit from employee stock-based awards
|
|
|
|
1,184
|
|
|
|
1,286
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
|
(1,142
|
)
|
|
|
(800
|
)
|
|
Deferred income taxes
|
|
|
|
1,366
|
|
|
|
616
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(11,704
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)
|
|
|
(804
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)
|
|
Inventories
|
|
|
|
(759
|
)
|
|
|
3,832
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|
|
Prepaid expenses and other assets
|
|
|
|
(4,499
|
)
|
|
|
(973
|
)
|
|
Accounts payable
|
|
|
|
(4,787
|
)
|
|
|
1,046
|
|
|
Accrued expenses
|
|
|
|
(1,634
|
)
|
|
|
(1,110
|
)
|
|
Deferred income on shipments to distributors
|
|
|
|
2,293
|
|
|
|
(50
|
)
|
|
Income taxes
|
|
|
|
3,233
|
|
|
|
(7,991
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
(2,626
|
)
|
|
|
31,115
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|
|
Investing Activities
|
|
|
|
|
|
|
Purchases of available-for-sale investments
|
|
|
|
(31,492
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)
|
|
|
(121,357
|
)
|
|
Proceeds from sales and maturities of marketable securities
|
|
|
|
55,092
|
|
|
|
67,697
|
|
|
Purchases of property and equipment
|
|
|
|
(2,697
|
)
|
|
|
(1,747
|
)
|
|
Purchases of other assets
|
|
|
|
(584
|
)
|
|
|
(3,436
|
)
|
|
Acquisition of business, net of cash acquired
|
|
|
|
(27,546
|
)
|
|
|
--
|
|
|
Net cash used in investing activities
|
|
|
|
(7,227
|
)
|
|
|
(58,843
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net of shares withheld for
taxes
|
|
|
|
(3,580
|
)
|
|
|
7,483
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
|
1,142
|
|
|
|
800
|
|
|
Repurchases of common stock
|
|
|
|
(606
|
)
|
|
|
(24,092
|
)
|
|
Payments on debt
|
|
|
|
(7,174
|
)
|
|
|
--
|
|
|
Net cash used in financing activities
|
|
|
|
(10,218
|
)
|
|
|
(15,809
|
)
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
|
(20,071
|
)
|
|
|
(43,537
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
138,567
|
|
|
|
195,737
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
118,496
|
|
|
$
|
152,200
|
|
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Source: Silicon Laboratories Inc.
News Provided by Acquire Media