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Silicon Labs Reports Second Quarter 2024 Results

AUSTIN, Texas, July 24, 2024 — (PRNewswire) — Silicon Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the second quarter, which ended June 29, 2024.

"Silicon Labs delivered another quarter of strong sequential growth, driven by a combination of design wins ramping to production in several key growth areas, and end customers working down their excess inventory," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Looking forward, we expect revenue growth to continue in the third quarter as excess inventory is further reduced, design wins continue ramping, and bookings improve."

Second Quarter Financial Highlights 

Results on a GAAP basis:

Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:

Business Highlights

Business Outlook

The company expects third-quarter revenue to be between $160 to $170 million. The company also estimates the following results:

On a GAAP basis:

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:

Earnings Webcast and Conference Call 

Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs' website ( www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through August 24, 2024.

About Silicon Labs 

Silicon Labs (NASDAQ: SLAB) is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, thriving ecosystem, and robust support make us an ideal long-term partner in building advanced industrial, commercial, home and life applications. We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. 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: the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; 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 or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); 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; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; 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 its accounts receivable; dependence on key personnel; stock price volatility; the impact of COVID-19 on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; 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, 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 Operations 

(In thousands, except per share data) 

(Unaudited)



Three Months Ended


Six Months Ended


June 29,
2024


July 1,
2023


June 29,
2024


July 1,
2023

Revenues

$           145,367


$           244,866


$           251,742


$           491,653

Cost of revenues

68,784


101,091


120,090


194,018

Gross profit

76,583


143,775


131,652


297,635

Operating expenses:








Research and development

85,909


85,902


166,559


175,298

Selling, general and administrative

38,695


40,706


72,248


85,597

Operating expenses

124,604


126,608


238,807


260,895

Operating income (loss)

(48,021)


17,167


(107,155)


36,740

Other income (expense):








Interest income and other, net

2,790


7,780


5,522


12,616

Interest expense

(263)


(1,596)


(772)


(3,252)

Income (loss) before income taxes

(45,494)


23,351


(102,405)


46,104

Provision for income taxes

36,663


12,338


36,278


20,091

Equity-method loss


(57)



(1,090)

Net income (loss)

$            (82,157)


$             10,956


$         (138,683)


$             24,923









Earnings (loss) per share:








Basic

$                (2.56)


$                  0.35


$                (4.33)


$                  0.78

Diluted

$                (2.56)


$                  0.33


$                (4.33)


$                  0.75









Weighted-average common shares outstanding:








Basic

32,124


31,614


32,018


31,786

Diluted

32,124


32,926


32,018


33,339

Non-GAAP Financial Measurements

In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.

The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)




Three Months Ended

June 29, 2024

Non-GAAP Income Statement Items


GAAP

Measure


GAAP

Percent of

Revenue


Stock

Compensation

Expense


Intangible
Asset

Amortization


Termination
Costs


Non-GAAP

Measure


Non-GAAP

Percent of

Revenue

Revenues


$     145,367




























Gross profit


76,583


52.7 %


$                 412


$                —


$                  —


$          76,995


53.0 %
















Research and development


85,909


59.1 %


10,217


6,061


902


68,729


47.3 %
















Selling, general and administrative


38,695


26.6 %


5,215


19


106


33,355


22.9 %
















Operating expenses


124,604


85.7 %


15,432


6,080


1,008


102,084


70.2 %
















Operating income (loss)


(48,021)


(33.0 %)


15,844


6,080


1,008


(25,089)


(17.3 %)

 



Three Months Ended

June 29, 2024

Non-GAAP Loss Per Share


GAAP

Measure


Stock

Compensation

Expense*


Intangible

Asset

Amortization*


Termination

Costs*


Income

Tax

Adjustments


Non-

GAAP

Measure

Net income (loss)


$    (82,157)


$          15,844


$             6,080


$           1,008


$           41,176


$      (18,049)














Diluted shares outstanding


32,124










32,124














Diluted loss per share


$        (2.56)










$          (0.56)

*   Represents pre-tax amounts

 

Unaudited Forward-Looking Statements Regarding Business Outlook

(In millions, except per share data)




Three Months Ended
September 28, 2024

Business Outlook


GAAP

Measure


Non-GAAP

Adjustments**


Non-GAAP

Measure

Gross margin


54% to 56%


— %


54% to 56%








Operating expenses


$123 to $125


$(22)


$101 to $103








Diluted loss per share


$(0.95) to $(1.25)


$0.85 to $0.95


$(0.10) to $(0.30)

** 

Non-GAAP adjustments include the following estimates: stock compensation expense of $16.8 million, intangible asset amortization of $5.4 million, and the application of a long-term non-GAAP tax rate of 20%.

 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets 

(In thousands, except per share data) 

(Unaudited)



June 29,
2024


December 30,
2023

Assets




Current assets:




Cash and cash equivalents

$           240,834


$           227,504

Short-term investments

98,336


211,720

Accounts receivable, net

41,212


29,295

Inventories

166,079


194,295

Prepaid expenses and other current assets

53,585


75,117

Total current assets

600,046


737,931

Property and equipment, net

139,397


145,890

Goodwill

376,389


376,389

Other intangible assets, net

47,374


59,533

Other assets, net

86,781


123,313

Total assets

$        1,249,987


$        1,443,056

Liabilities and Stockholders' Equity




Current liabilities:




Accounts payable

$             39,295


$             57,498

Revolving line of credit


45,000

Deferred revenue and returns liability

3,323


2,117

Other current liabilities

57,495


58,955

Total current liabilities

100,113


163,570

Other non-current liabilities

56,845


70,804

Total liabilities

156,958


234,374

Commitments and contingencies




Stockholders' equity:




Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued


Common stock – $0.0001 par value; 250,000 shares authorized; 32,289 and 31,897 shares issued and outstanding at June 29, 2024 and December 30, 2023, respectively

3


3

Additional paid-in capital

39,232


16,973

Retained earnings

1,054,048


1,192,731

Accumulated other comprehensive loss

(254)


(1,025)

Total stockholders' equity

1,093,029


1,208,682

Total liabilities and stockholders' equity

$        1,249,987


$        1,443,056

 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows 

(In thousands) 

(Unaudited)



Six Months Ended


June 29,
2024


July 1,
2023

Operating Activities




Net income (loss)

$         (138,683)


$             24,923

Adjustments to reconcile net income to net cash used in operating activities:




Depreciation of property and equipment

13,152


12,441

Amortization of other intangible assets

12,160


12,904

Amortization of debt issuance costs


960

Stock-based compensation expense

29,455


31,377

Equity-method loss


1,090

Deferred income taxes

29,784


(6,403)

Changes in operating assets and liabilities:




Accounts receivable

(11,918)


(26,819)

Inventories

28,123


(45,064)

Prepaid expenses and other assets

20,723


32,963

Accounts payable

(19,341)


(30,003)

Other current liabilities and income taxes

(13,624)


(26,220)

Deferred revenue and returns liability

1,206


4,326

Other non-current liabilities

(6,703)


(1,975)

Net cash used in operating activities

(55,666)


(15,500)





Investing Activities




Purchases of marketable securities

(17,700)


(81,427)

Sales of marketable securities

34,538


339,555

Maturities of marketable securities

97,458


171,691

Purchases of property and equipment

(5,577)


(13,462)

Proceeds from sale of equity investment

12,382


Purchases of other assets


(215)

Net cash provided by investing activities

121,101


416,142





Financing Activities




Proceeds from revolving line of credit


80,000

Payments on debt

(45,000)


(536,124)

Repurchases of common stock


(201,095)

Payment of taxes withheld for vested stock awards

(15,213)


(16,310)

Proceeds from the issuance of common stock

8,108


7,785

Net cash used in financing activities

(52,105)


(665,744)





Increase (decrease) in cash and cash equivalents

13,330


(265,102)

Cash and cash equivalents at beginning of period

227,504


499,915

Cash and cash equivalents at end of period

$           240,834


$           234,813

 

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SOURCE Silicon Labs

Contact:
Company Name: Silicon Labs
Thomas Haws, Investor Relations Manager, (512) 416-8500
Email Contact
Financial data for Silicon Labs