Strong Quarterly Performance and Better Than Seasonal Outlook
AUSTIN, Texas--(BUSINESS WIRE)--
Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today reported
fourth quarter revenue of $126.7 million, a 13 percent increase compared
to the same period last year. GAAP and non-GAAP earnings per share of
$0.29 and $0.49, respectively, exceeded expectations and represented
solid double-digit sequential growth.
Financial Highlights
Business trends were robust throughout the quarter, with new product
cycles driving revenue upside. Solid operating performance also
translated to better than anticipated profitability.
Fourth quarter revenue increased more than 6 percent sequentially to
$126.7 million. GAAP gross margin was 60.9 percent. R&D investment
increased to $34.7 million, and SG&A was flat at $27.3 million.
Operating income improved meaningfully from the same period last year to
12 percent. GAAP net income was 10 percent of revenue for the quarter.
Diluted GAAP earnings of 29 cents represented a 12 percent increase
compared to the third quarter.
The following non-GAAP results exclude the impact of stock compensation
expense and certain other one-time items. Gross margin remained stable
at 61.2 percent. R&D investment increased to $29.6 million due primarily
to increased tape out activity, and as planned, SG&A remained flat at
$22.5 million. Operating income improved to 20 percent of revenue, and
net income improved to 17 percent of revenue. The solid operational
performance resulted in diluted earnings per share of 49 cents, an 11
percent sequential increase, and well above guidance. The company ended
the quarter with $325 million in cash, cash equivalents and investments
due to continued healthy cash flow from operations.
Reconciling charges are set forth in the financial measures table
included below.
Business Highlights
Fourth quarter revenue upside was driven by new product cycles in video
and touch controllers, as well as better than anticipated demand for
SLIC devices and many of the company's Broad-based products.
The company's video products exceeded the full year revenue target and
exited the year positioned to further expand its strong market share
position as customers ramp 2012 TV models into production. iDTVs
featuring the company's latest generation products were on display at
the Consumer Electronics Show, demonstrating the form factor and
performance advantages available when using Silicon Labs silicon tuner
technology.
Similarly, the company's touch controllers designed into mobile handsets
exceeded initial forecasts, shipping throughout Europe, China and India
during the fourth quarter. This rapid ramp in a major mobile handset
platform was strong validation for the company's touch technology and a
good foundation for expanding market share in 2012.
The company's non-consumer products also delivered solid performance in
the quarter, including MCUs, which remained stable, and isolation and
wireless products which grew significantly as new customer programs
ramped. Timing products delivered excellent year over year growth again
at 30 percent, but slowed in the fourth quarter in conjunction with the
near-term weakness in the telecom equipment market.
"We enjoyed a sustained improvement in the strength of bookings as we
ended 2011. And with our recent results demonstrating significant share
gains, we have a lot to look forward to in 2012," said Necip Sayiner,
president and CEO of Silicon Laboratories. "We believe we have both the
diversity to weather any lingering macro weakness and the product cycles
to get us back into a mode of consistently outperforming our peers."
The company expects revenue for the first quarter to be in the range of
$120 million to $125 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 (855) 859-2056 or +1 (404) 537-3406
(international) and by entering 42298945. The replay will be available
through February 8th.
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.
|
Silicon Laboratories Inc.
|
|
Condensed Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
December 31,
2011
|
|
January 1,
2011
|
|
December 31,
2011
|
|
January 1,
2011
|
|
Revenues
|
|
$
|
126,692
|
|
|
$
|
111,891
|
|
|
$
|
491,625
|
|
|
$
|
493,341
|
|
|
Cost of revenues
|
|
|
49,513
|
|
|
|
40,800
|
|
|
|
193,179
|
|
|
|
169,097
|
|
|
Gross margin
|
|
|
77,179
|
|
|
|
71,091
|
|
|
|
298,446
|
|
|
|
324,244
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
34,705
|
|
|
|
32,621
|
|
|
|
135,953
|
|
|
|
123,821
|
|
|
Selling, general and administrative
|
|
|
27,251
|
|
|
|
27,456
|
|
|
|
112,419
|
|
|
|
113,752
|
|
|
Operating expenses
|
|
|
61,956
|
|
|
|
60,077
|
|
|
|
248,372
|
|
|
|
237,573
|
|
|
Operating income
|
|
|
15,223
|
|
|
|
11,014
|
|
|
|
50,074
|
|
|
|
86,671
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
427
|
|
|
|
479
|
|
|
|
1,859
|
|
|
|
2,318
|
|
|
Interest expense
|
|
|
(23
|
)
|
|
|
(11
|
)
|
|
|
(37
|
)
|
|
|
(77
|
)
|
|
Other income (expense), net
|
|
|
152
|
|
|
|
24
|
|
|
|
444
|
|
|
|
(1,253
|
)
|
|
Income before income taxes
|
|
|
15,779
|
|
|
|
11,506
|
|
|
|
52,340
|
|
|
|
87,659
|
|
|
Provision (benefit) for income taxes
|
|
|
2,974
|
|
|
|
(1,377
|
)
|
|
|
16,868
|
|
|
|
14,417
|
|
|
Net income
|
|
$
|
12,805
|
|
|
$
|
12,883
|
|
|
$
|
35,472
|
|
|
$
|
73,242
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
0.82
|
|
|
$
|
1.63
|
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
0.28
|
|
|
$
|
0.79
|
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
41,979
|
|
|
|
43,834
|
|
|
|
43,421
|
|
|
|
44,845
|
|
|
Diluted
|
|
|
43,410
|
|
|
|
45,658
|
|
|
|
44,832
|
|
|
|
46,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income Statement Items
|
|
Three Months Ended
December 31, 2011
|
|
|
|
GAAP
Measure
|
|
GAAP
Percent of
Revenue
|
|
Stock
Compensation
Expense
|
|
Acquisition
Related
Items
|
|
Termination
Costs and
Impairments
|
|
Non-
GAAP
Measure
|
|
Non-
GAAP
Percent of
Revenue
|
|
Revenues
|
|
$
|
126,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
77,179
|
|
|
60.9
|
%
|
|
$
|
304
|
|
$
|
--
|
|
|
$
|
--
|
|
$
|
77,483
|
|
61.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
34,705
|
|
|
27.4
|
%
|
|
|
3,588
|
|
|
--
|
|
|
|
1,553
|
|
|
29,564
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
27,251
|
|
|
21.5
|
%
|
|
|
5,000
|
|
|
(560
|
)
|
|
|
345
|
|
|
22,466
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
15,223
|
|
|
12.0
|
%
|
|
|
8,892
|
|
|
(560
|
)
|
|
|
1,898
|
|
|
25,453
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
12,805
|
|
|
10.1
|
%
|
|
|
7,629
|
|
|
(560
|
)
|
|
|
1,510
|
|
|
21,384
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings Per Share
|
|
|
|
Three Months Ended
December 31, 2011
|
|
|
|
|
|
|
|
GAAP
Measure
|
|
Stock
Compensation
Expense
|
|
Acquisition
Related
Items
|
|
Termination
Costs and
Impairments
|
|
Non-
GAAP
Measure
|
|
|
|
Net income
|
|
|
|
$
|
12,805
|
|
|
$
|
7,629
|
|
$
|
(560
|
)
|
|
$
|
1,510
|
|
$
|
21,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
|
|
43,410
|
|
|
|
|
|
|
|
|
|
43,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
January 1,
2011
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
94,964
|
|
|
$
|
138,567
|
|
|
Short-term investments
|
|
|
212,526
|
|
|
|
227,295
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$725 at December 31, 2011 and $772 at January 1, 2011
|
|
|
55,351
|
|
|
|
45,030
|
|
|
Inventories
|
|
|
34,778
|
|
|
|
39,450
|
|
|
Deferred income taxes
|
|
|
11,563
|
|
|
|
9,140
|
|
|
Prepaid expenses and other current assets
|
|
|
43,867
|
|
|
|
34,447
|
|
|
Total current assets
|
|
|
453,049
|
|
|
|
493,929
|
|
|
Long-term investments
|
|
|
17,477
|
|
|
|
17,500
|
|
|
Property and equipment, net
|
|
|
25,141
|
|
|
|
29,945
|
|
|
Goodwill
|
|
|
115,489
|
|
|
|
112,296
|
|
|
Other intangible assets, net
|
|
|
60,005
|
|
|
|
53,242
|
|
|
Other assets, net
|
|
|
34,830
|
|
|
|
20,746
|
|
|
Total assets
|
|
$
|
705,991
|
|
|
$
|
727,658
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
26,354
|
|
|
$
|
24,433
|
|
|
Accrued expenses
|
|
|
30,857
|
|
|
|
25,604
|
|
|
Deferred income on shipments to distributors
|
|
|
24,962
|
|
|
|
26,127
|
|
|
Income taxes
|
|
|
665
|
|
|
|
3,692
|
|
|
Total current liabilities
|
|
|
82,838
|
|
|
|
79,856
|
|
|
Long-term obligations and other liabilities
|
|
|
24,214
|
|
|
|
22,372
|
|
|
Total liabilities
|
|
|
107,052
|
|
|
|
102,228
|
|
|
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; 42,068
and 43,933 shares issued and outstanding at December 31, 2011 and
January 1, 2011, respectively
|
|
|
4
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
14,749
|
|
|
|
49,947
|
|
|
Retained earnings
|
|
|
586,653
|
|
|
|
579,127
|
|
|
Accumulated other comprehensive loss
|
|
|
(2,467
|
)
|
|
|
(3,648
|
)
|
|
Total stockholders' equity
|
|
|
598,939
|
|
|
|
625,430
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
705,991
|
|
|
$
|
727,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31,
2011
|
|
January 1,
2011
|
|
Operating Activities
|
|
|
|
|
|
Net income
|
|
$
|
35,472
|
|
|
$
|
73,242
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
13,570
|
|
|
|
11,797
|
|
|
Amortization of other intangible assets and other assets
|
|
|
11,030
|
|
|
|
7,494
|
|
|
Impairment of long-lived assets
|
|
|
1,322
|
|
|
|
--
|
|
|
Stock-based compensation expense
|
|
|
36,115
|
|
|
|
40,324
|
|
|
Income tax benefit from employee stock-based awards
|
|
|
2,814
|
|
|
|
3,295
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
(2,404
|
)
|
|
|
(2,412
|
)
|
|
Deferred income taxes
|
|
|
(445
|
)
|
|
|
(552
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(8,562
|
)
|
|
|
11,342
|
|
|
Inventories
|
|
|
5,334
|
|
|
|
(7,811
|
)
|
|
Prepaid expenses and other assets
|
|
|
(5,948
|
)
|
|
|
(5,300
|
)
|
|
Accounts payable
|
|
|
(2,176
|
)
|
|
|
(777
|
)
|
|
Accrued expenses
|
|
|
(1,320
|
)
|
|
|
(2,590
|
)
|
|
Deferred income on shipments to distributors
|
|
|
(1,915
|
)
|
|
|
(2,343
|
)
|
|
Income taxes
|
|
|
5,855
|
|
|
|
(7,774
|
)
|
|
Net cash provided by operating activities
|
|
|
88,742
|
|
|
|
117,935
|
|
|
Investing Activities
|
|
|
|
|
|
Purchases of available-for-sale investments
|
|
|
(178,676
|
)
|
|
|
(357,777
|
)
|
|
Proceeds from sales and maturities of marketable securities
|
|
|
193,474
|
|
|
|
352,779
|
|
|
Purchases of property and equipment
|
|
|
(8,690
|
)
|
|
|
(13,850
|
)
|
|
Purchases of other assets
|
|
|
(4,018
|
)
|
|
|
(8,372
|
)
|
|
Acquisitions of businesses, net of cash acquired
|
|
|
(27,262
|
)
|
|
|
(28,021
|
)
|
|
Net cash used in investing activities
|
|
|
(25,172
|
)
|
|
|
(55,241
|
)
|
|
Financing Activities
|
|
|
|
|
|
Proceeds from issuance of common stock, net of shares withheld for
taxes
|
|
|
7,660
|
|
|
|
18,055
|
|
|
Excess income tax benefit from employee stock-based awards
|
|
|
2,404
|
|
|
|
2,412
|
|
|
Repurchases of common stock
|
|
|
(110,063
|
)
|
|
|
(140,331
|
)
|
|
Payments on debt
|
|
|
(7,174
|
)
|
|
|
--
|
|
|
Net cash used in financing activities
|
|
|
(107,173
|
)
|
|
|
(119,864
|
)
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
(43,603
|
)
|
|
|
(57,170
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
138,567
|
|
|
|
195,737
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
94,964
|
|
|
$
|
138,567
|
|
Silicon Laboratories Inc.
Shannon Pleasant, 512-464-9254
shannon.pleasant@silabs.com
Source: Silicon Laboratories Inc.
News Provided by Acquire Media