[February 03, 2016] |
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Silicon Labs Announces Fourth Quarter and Full Year 2015 Results
Silicon
Labs (NASDAQ: SLAB), a leading provider of silicon, software and
solutions for a smarter, more connected world, today reported financial
results for its fourth quarter ended January 2, 2016. Revenue in the
fourth quarter was at the high end of guidance at $160.1 million, up
from $156.2 million in the third quarter. Fourth quarter non-GAAP
earnings per share exceeded the high end of guidance at $0.63.
Fourth Quarter Financial Highlights
-
IoT revenue exceeded expectations, increasing to $67.2 million, or
2.8% sequentially
-
Infrastructure revenue declined slightly to $30.6 million, or 1.5%
sequentially
-
Broadcast revenue increased to $39.7 million, or 8.7% sequentially
-
Access revenue declined to $22.6 million, or 3.0% sequentially
On a GAAP basis:
-
Gross margin was 58.4 percent
-
R&D expenses were $47.2 million
-
SG&A expenses were $41.5 million
-
Operating income as a percentage of revenue was 3.0 percent
-
Diluted earnings per share were $0.13
On a non-GAAP basis (results exclude the impact of stock compensation,
amortization of acquired intangible assets and certain other items as
set forth in the reconciliation tables below):
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Gross margin was 59.0 percent
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R&D expenses were $36.4 million
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SG&A expenses were $31.4 million
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Operating income as a percentage of revenue was 16.6 percent
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Diluted earnings per share were $0.63
Product Highlights
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Announced broad support for ARM® mbed OS within the EFM32™
Gecko MCU portfolio, providing best-in-class energy efficiency and
design simplicity for embedded developers.
-
Introduced next-generation EFM32
Pearl and Jade Gecko MCU families, providing advancements in
security and energy management technologies.
-
Announced the EFM8™
Laser Bee family, delivering the highest analog performance and
peripheral integration in the 8-bit market.
-
Introduced turnkey connected
home reference designs that reduce the complexity of linking
devices such as lights, dimmer switches, and door or window contact
sensors.
-
Released the industry's most cost-effective reference
design solution for voice-enabled ZigBee® remote controls for home
entertainment systems.
-
Announced the TouchXpress™
family of fixed-function controllers, providing the fastest, easiest
way to add low-power capacitive touch interfaces to embedded designs.
-
Introduced a free software tool that enables engineers to quickly and
easily measure PCI
Express® clock jitter to verify PCIe® specification compliance.
-
Launched the Si86xxxT
family of multi-channel digital isolators, providing robust
protection against lightning strikes and exceptional reliability for
demanding industrial systems.
Business Highlights
Business Outlook
The company expects revenue in the first quarter to be in the range of
$157 million to $162 million. First quarter diluted earnings (loss)
per share are expected to be between $(0.08) and $(0.02) on a GAAP basis
and between $0.42 and $0.48 on a non-GAAP basis.
"Strong top line performance combined with favorable opex drove a solid
beat in fourth quarter EPS," said Tyson Tuttle, CEO of Silicon Labs.
"During 2015, we made significant progress in laying the foundation for
our continued success as a leading supplier of silicon, software and
solutions for a more connected world. Our strategic growth products,
including IoT, Infrastructure and Broadcast automotive, all delivered
record revenue in 2015."
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 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 entering conference ID 83469958. The replay will be available
through March 3, 2016.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software
and solutions for the Internet of Things, Infrastructure, industrial
automation, consumer and automotive markets. We solve the electronics
industry's toughest problems, providing customers with significant
advantages in performance, energy savings, connectivity and design
simplicity. Backed by our world-class engineering teams with strong
software and mixed-signal design expertise, Silicon Labs empowers
developers with the tools and technologies they need to advance quickly
and easily from initial idea to final product. 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 "S" symbol,
the Silicon Laboratories logo, and EFM32, EFM8, Simplicity Studio and
TouchXpress 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.
|
Condensed Consolidated Statements of Income
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
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January 2,
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January 3,
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January 2,
|
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January 3,
|
|
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2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
$
|
160,071
|
|
|
$
|
161,951
|
|
|
$
|
644,826
|
|
|
$
|
620,704
|
|
Cost of revenues
|
|
|
|
66,533
|
|
|
|
65,279
|
|
|
|
264,056
|
|
|
|
242,153
|
|
Gross margin
|
|
|
|
93,538
|
|
|
|
96,672
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|
|
|
380,770
|
|
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|
378,551
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|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
47,245
|
|
|
|
46,139
|
|
|
|
188,050
|
|
|
|
172,985
|
|
Selling, general and administrative
|
|
|
|
41,497
|
|
|
|
39,527
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|
|
|
160,486
|
|
|
|
154,145
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Operating expenses
|
|
|
|
88,742
|
|
|
|
85,666
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|
|
|
348,536
|
|
|
|
327,130
|
|
Operating income
|
|
|
|
4,796
|
|
|
|
11,006
|
|
|
|
32,234
|
|
|
|
51,421
|
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Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
186
|
|
|
|
274
|
|
|
|
730
|
|
|
|
1,007
|
|
Interest expense
|
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|
|
(668
|
)
|
|
|
(808
|
)
|
|
|
(2,828
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)
|
|
|
(3,154
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)
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Other income (expense), net
|
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|
|
(91
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)
|
|
|
(337
|
)
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|
127
|
|
|
|
(234
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)
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Income before income taxes
|
|
|
|
4,223
|
|
|
|
10,135
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|
|
|
30,263
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|
49,040
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Provision (benefit) for income taxes
|
|
|
|
(1,435
|
)
|
|
|
111
|
|
|
|
677
|
|
|
|
11,019
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income
|
|
|
$
|
5,658
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|
|
$
|
10,024
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$
|
29,586
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|
|
$
|
38,021
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Earnings per share:
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Basic
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$
|
0.14
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|
$
|
0.24
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|
|
$
|
0.70
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|
|
$
|
0.88
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Diluted
|
|
|
$
|
0.13
|
|
|
$
|
0.23
|
|
|
$
|
0.69
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|
|
$
|
0.87
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|
|
|
|
|
|
|
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Weighted-average common shares outstanding:
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Basic
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41,670
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42,279
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|
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42,309
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|
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42,970
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Diluted
|
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42,374
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|
43,137
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|
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42,945
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|
|
43,793
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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 Items
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Three Months Ended January 2, 2016
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GAAP
|
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Stock
|
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Intangible
|
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Acquisition
|
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Non-GAAP
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GAAP
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Percent of
|
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Compensation
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Asset
|
|
Related
|
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Termination
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Non-GAAP
|
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Percent of
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|
Measure
|
|
Revenue
|
|
Expense
|
|
Amortization
|
|
Items
|
|
Costs
|
|
Measure
|
|
Revenue
|
Revenues
|
|
$
|
160,071
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
93,538
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|
|
58.4
|
%
|
|
$
|
251
|
|
$
|
390
|
|
$
|
201
|
|
$
|
--
|
|
|
$
|
94,380
|
|
59.0
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Research and development
|
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|
47,245
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|
|
29.5
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%
|
|
|
5,073
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|
|
5,441
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|
|
--
|
|
|
336
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|
|
|
36,395
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22.7
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%
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|
|
|
|
|
|
|
|
|
|
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|
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Selling, general and administrative
|
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41,497
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|
|
25.9
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%
|
|
|
6,669
|
|
|
1,286
|
|
|
1,752
|
|
|
380
|
|
|
|
31,410
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|
19.7
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%
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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Operating income
|
|
|
4,796
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|
|
3.0
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%
|
|
|
11,993
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|
|
7,117
|
|
|
1,953
|
|
|
716
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|
|
|
26,575
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|
16.6
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%
|
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|
|
|
|
|
|
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|
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|
|
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|
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|
|
|
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|
|
Non-GAAP Earnings Per Share
|
|
Three Months Ended January 2, 2016
|
|
|
|
|
|
|
Stock
|
|
Intangible
|
|
Acquisition
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Compensation
|
|
Asset
|
|
Related
|
|
Termination
|
|
Income Tax
|
|
Non-GAAP
|
|
|
|
|
Measure
|
|
Expense*
|
|
Amortization*
|
|
Items*
|
|
Costs*
|
|
Adjustments
|
|
Measure
|
|
|
Net income
|
|
$
|
5,658
|
|
$
|
11,993
|
|
|
$
|
7,117
|
|
$
|
1,953
|
|
$
|
716
|
|
$
|
(889
|
)
|
|
$
|
26,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
42,374
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|
|
|
|
|
|
|
|
|
|
|
|
42,374
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
* Represents pre-tax amounts
|
|
|
|
|
|
|
Unaudited Forward-Looking Statements Regarding Business Outlook
|
|
|
|
Business Outlook
|
|
Three Months Ending April 2, 2016
|
|
|
High
|
|
Low
|
Estimated GAAP diluted earnings (loss) per share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
Estimated non-GAAP charges
|
|
|
0.50
|
|
|
|
0.50
|
|
|
|
|
|
|
Estimated non-GAAP diluted earnings per share
|
|
$
|
0.48
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
Condensed Consolidated Balance Sheets
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
January 2,
|
|
January 3,
|
|
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
114,085
|
|
|
$
|
141,706
|
|
Short-term investments
|
|
|
|
128,901
|
|
|
|
193,489
|
|
Accounts receivable, net of allowances for doubtful accounts of
$671 at January 2, 2016 and $786 at January 3, 2015
|
|
|
|
73,601
|
|
|
|
70,367
|
|
Inventories
|
|
|
|
53,895
|
|
|
|
52,631
|
|
Deferred income taxes
|
|
|
|
--
|
|
|
|
21,173
|
|
Prepaid expenses and other current assets
|
|
|
|
52,658
|
|
|
|
49,171
|
|
Total current assets
|
|
|
|
423,140
|
|
|
|
528,537
|
|
Long-term investments
|
|
|
|
7,126
|
|
|
|
7,419
|
|
Property and equipment, net
|
|
|
|
131,132
|
|
|
|
132,820
|
|
Goodwill
|
|
|
|
272,722
|
|
|
|
228,781
|
|
Other intangible assets, net
|
|
|
|
121,354
|
|
|
|
115,021
|
|
Other assets, net
|
|
|
|
55,989
|
|
|
|
29,983
|
|
Total assets
|
|
|
$
|
1,011,463
|
|
|
$
|
1,042,561
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
42,127
|
|
|
$
|
38,922
|
|
Current portion of long-term debt
|
|
|
|
10,000
|
|
|
|
10,000
|
|
Accrued expenses
|
|
|
|
52,131
|
|
|
|
73,646
|
|
Deferred income on shipments to distributors
|
|
|
|
35,448
|
|
|
|
38,662
|
|
Income taxes
|
|
|
|
2,615
|
|
|
|
2,084
|
|
Total current liabilities
|
|
|
|
142,321
|
|
|
|
163,314
|
|
Long-term debt
|
|
|
|
67,500
|
|
|
|
77,500
|
|
Other non-current liabilities
|
|
|
|
40,528
|
|
|
|
43,691
|
|
Total liabilities
|
|
|
|
250,349
|
|
|
|
284,505
|
|
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;
41,727 and 42,225 shares issued and outstanding at January 2, 2016
and January 3, 2015, respectively
|
|
|
|
4
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
|
13,868
|
|
|
|
29,501
|
|
Retained earnings
|
|
|
|
747,749
|
|
|
|
728,633
|
|
Accumulated other comprehensive loss
|
|
|
|
(507
|
)
|
|
|
(82
|
)
|
Total stockholders' equity
|
|
|
|
761,114
|
|
|
|
758,056
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,011,463
|
|
|
$
|
1,042,561
|
|
|
|
|
|
|
|
|
|
Silicon Laboratories Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
January 2,
|
|
January 3,
|
|
|
|
2016
|
|
2015
|
Operating Activities
|
|
|
|
|
|
Net income
|
|
|
$
|
29,586
|
|
|
$
|
38,021
|
|
Adjustments to reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
|
12,517
|
|
|
|
12,561
|
|
Amortization of other intangible assets and other assets
|
|
|
|
29,131
|
|
|
|
17,923
|
|
Stock-based compensation expense
|
|
|
|
42,791
|
|
|
|
39,067
|
|
Income tax benefit (shortfall) from stock-based awards
|
|
|
|
469
|
|
|
|
489
|
|
Excess income tax benefit from stock-based awards
|
|
|
|
(2,497
|
)
|
|
|
(632
|
)
|
Deferred income taxes
|
|
|
|
(2,136
|
)
|
|
|
3,054
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
1,702
|
|
|
|
1,757
|
|
Inventories
|
|
|
|
2,093
|
|
|
|
(7,170
|
)
|
Prepaid expenses and other assets
|
|
|
|
(870
|
)
|
|
|
9,332
|
|
Accounts payable
|
|
|
|
6,662
|
|
|
|
11,475
|
|
Accrued expenses
|
|
|
|
1,682
|
|
|
|
27,671
|
|
Deferred income on shipments to distributors
|
|
|
|
(5,298
|
)
|
|
|
7,809
|
|
Income taxes
|
|
|
|
776
|
|
|
|
(3,371
|
)
|
Other non-current liabilities
|
|
|
|
(11,161
|
)
|
|
|
(20,543
|
)
|
Net cash provided by operating activities
|
|
|
|
105,447
|
|
|
|
137,443
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
Purchases of available-for-sale investments
|
|
|
|
(107,366
|
)
|
|
|
(166,094
|
)
|
Proceeds from sales and maturities of available-for-sale investments
|
|
|
|
171,831
|
|
|
|
156,520
|
|
Purchases of property and equipment
|
|
|
|
(11,268
|
)
|
|
|
(11,225
|
)
|
Purchases of other assets
|
|
|
|
(6,399
|
)
|
|
|
(5,514
|
)
|
Acquisitions of businesses, net of cash acquired
|
|
|
|
(96,112
|
)
|
|
|
--
|
|
Net cash used in investing activities
|
|
|
|
(49,314
|
)
|
|
|
(26,313
|
)
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
Proceeds from issuance of common stock, net of cash paid for
withheld taxes
|
|
|
|
3,129
|
|
|
|
13,320
|
|
Excess income tax benefit from stock-based awards
|
|
|
|
2,497
|
|
|
|
632
|
|
Repurchases of common stock
|
|
|
|
(71,448
|
)
|
|
|
(71,676
|
)
|
Payment of acquisition-related contingent consideration
|
|
|
|
(4,464
|
)
|
|
|
--
|
|
Proceeds from issuance of long-term debt, net
|
|
|
|
81,238
|
|
|
|
--
|
|
Payments on debt
|
|
|
|
(94,706
|
)
|
|
|
(7,500
|
)
|
Net cash used in financing activities
|
|
|
|
(83,754
|
)
|
|
|
(65,224
|
)
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
(27,621
|
)
|
|
|
45,906
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
141,706
|
|
|
|
95,800
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
114,085
|
|
|
$
|
141,706
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160203005348/en/
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