[ Back ]   [ More News ]   [ Home ]
Silicon Labs Announces Record Revenue for Fourth Quarter and Full Year 2016

-- Exceeds Q4 Guidance on Revenue, Gross Margin and EPS --

AUSTIN, Texas, Feb. 1, 2017 — (PRNewswire) —   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 December 31, 2016. Revenue in the fourth quarter established a new, all-time record, exceeding the high end of guidance at $183 million, up from $178 million in the third quarter. Fourth quarter GAAP and non-GAAP earnings per share (EPS) exceeded the high end of guidance at $0.47 and $0.75, respectively.

Fourth Quarter Financial Highlights

On a GAAP basis:

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):

Product Highlights

Business Highlights

Business Outlook

The company expects revenue in the first quarter to be in the range of $174 million to $179 million. First quarter diluted earnings per share are expected to be between $0.21 and $0.27 on a GAAP basis, and between $0.57 and $0.63 on a non-GAAP basis.

"We are very pleased to report outstanding fourth quarter and full-year 2016 financial performance, including 14 percent year-on-year revenue growth in Q4 and eight percent for the year," said Tyson Tuttle, CEO of Silicon Labs. "We are executing on our strategy focused on the IoT and Infrastructure markets, and are seeing our efforts translate into strong financial results, achieving target model for annual growth, gross margin and operating margin in the second half."

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 ( www.silabs.com) under Investor Relations. 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 8458646. The replay will be available through March 1, 2017.

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; cyber-attacks against our products and our networks; 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 Labs logo, and EFM8 are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

CONTACT: Jalene Hoover, +1 (512) 428-1610, Email Contact

 

Silicon Laboratories Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)






Three Months Ended


Year Ended


December 31,
2016


January 2,
2016


December 31,
2016


January 2,
2016


Revenues

$182,610


$160,071


$697,626


$644,826


Cost of revenues

73,134


66,533


276,122


264,056


Gross margin

109,476


93,538


421,504


380,770


Operating expenses:









   Research and development

50,626


47,245


199,744


188,050


   Selling, general and administrative

38,767


41,497


155,483


160,486


Operating expenses

89,393


88,742


355,227


348,536


Operating income

20,083


4,796


66,277


32,234


Other income (expense):









   Interest income

411


186


1,291


730


   Interest expense

(648)


(668)


(2,587)


(2,828)


   Other, net

(54)


(91)


(485)


127


Income before income taxes

19,792


4,223


64,496


30,263


Provision (benefit) for income taxes

(317)


(1,435)


3,002


677


Net income

$  20,109


$    5,658


$  61,494


$  29,586











Earnings per share:









   Basic

$      0.48


$      0.14


$      1.47


$      0.70


   Diluted

$      0.47


$      0.13


$      1.45


$      0.69











Weighted-average common shares outstanding:









   Basic

41,850


41,670


41,713


42,309


   Diluted

42,728


42,374


42,376


42,945


 

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, 2016



GAAP

Measure


GAAP

Percent of
Revenue


Stock

Compensation
Expense


Intangible
Asset
Amortization


Acquisition
Related
Items


Termination
Costs


Non-
GAAP

Measure


Non-GAAP

Percent of

Revenue

Revenues


$182,610
































Gross margin


109,476


60.0%


$   264


$      --


$   --


$   --


$109,740


60.1%


















Research and development


50,626


27.7%


4,879


4,601


(232)


--


41,378


22.7%


















Selling, general and

administrative


38,767


21.3%


4,429


1,522


282


742


31,792


17.4%


















Operating income


20,083


11.0%


9,572


6,123


50


742


36,570


20.0%



































Non-GAAP

Earnings Per Share


Three Months Ended

December 31, 2016





GAAP

Measure


Stock

Compensation
Expense*


Intangible
Asset
Amortization*


Acquisition Related Items*


Termination
Costs*


Income Tax
Adjustments


Non-
GAAP

Measure



Net income


$20,109


$9,572


$6,123


$50


$742


$(4,585)


$32,011




















Diluted shares outstanding


42,728












42,728




















Diluted earnings per share


$    0.47












$    0.75




* Represents pre-tax amounts

 

Unaudited Forward-Looking Statements Regarding Business Outlook




Business Outlook


Three Months Ending

April 1, 2017



High


Low

Estimated GAAP diluted earnings per share


$0.27


$0.21






Estimated non-GAAP charges


0.36


0.36






Estimated non-GAAP diluted earnings per share


$0.63


$0.57

 

Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)



December 31,
2016


January 2,
2016

Assets




Current assets:




   Cash and cash equivalents

$   141,106


$   114,085

   Short-term investments

153,961


128,901

   Accounts receivable, net

74,401


73,601

   Inventories

59,578


53,895

   Prepaid expenses and other current assets

61,805


52,658

Total current assets

490,851


423,140

Long-term investments

5,196


7,126

Property and equipment, net

129,559


131,132

Goodwill

276,130


272,722

Other intangible assets, net

103,565


121,354

Other assets, net

76,543


55,989

Total assets

$1,081,844


$1,011,463





Liabilities and Stockholders' Equity




Current liabilities:




   Accounts payable

$     39,577


$     42,127

   Current portion of long-term debt

--


10,000

   Accrued expenses

50,100


52,131

   Deferred income on shipments to distributors

45,568


35,448

   Income taxes

4,450


2,615

Total current liabilities

139,695


142,321

Long-term debt

72,500


67,500

Other non-current liabilities

42,691


40,528

Total liabilities

254,886


250,349

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; 

     41,889 and 41,727 shares issued and outstanding at

     December 31, 2016 and January 2, 2016, respectively

4


4

   Additional paid-in capital

24,463


13,868

   Retained earnings

801,999


747,749

   Accumulated other comprehensive income (loss)

492


(507)

Total stockholders' equity

826,958


761,114

Total liabilities and stockholders' equity

$1,081,844


$1,011,463

 

Silicon Laboratories Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)



Year Ended


December 31,
2016


January 2,
2016

Operating Activities




Net income

$  61,494


$  29,586

Adjustments to reconcile net income to cash provided by operating activities:




   Depreciation of property and equipment

13,216


12,517

   Amortization of other intangible assets and other assets

27,715


29,131

   Stock-based compensation expense

39,628


42,791

   Income tax benefit (shortfall) from stock-based awards

(1,099)


469

   Excess income tax benefit from stock-based awards

(572)


(2,497)

   Deferred income taxes

(4,087)


(2,136)

   Changes in operating assets and liabilities:




      Accounts receivable

46


1,702

      Inventories

(6,093)


2,093

      Prepaid expenses and other assets

(3,568)


(870)

      Accounts payable

263


6,662

      Accrued expenses

5,919


1,682

      Deferred income on shipments to distributors

9,713


(5,298)

      Income taxes

(3,040)


776

      Other non-current liabilities

(10,625)


(11,161)

Net cash provided by operating activities

128,910


105,447





Investing Activities




Purchases of available-for-sale investments

(185,231)


(107,366)

Sales and maturities of available-for-sale investments

161,921


171,831

Purchases of property and equipment

(10,927)


(11,268)

Purchases of other assets

(8,801)


(6,399)

Acquisitions of businesses, net of cash acquired

(6,546)


(96,112)

Net cash used in investing activities

(49,584)


(49,314)





Financing Activities




Proceeds from issuance of long-term debt, net

--


81,238

Payments on debt

(5,000)


(94,706)

Repurchases of common stock

(40,543)


(71,448)

Payment of taxes withheld for vested stock awards

(11,133)


(13,869)

Proceeds from the issuance of common stock

13,299


16,998

Excess income tax benefit from stock-based awards

572


2,497

Payment of acquisition-related contingent consideration

(9,500)


(4,464)

Net cash used in financing activities

(52,305)


(83,754)





Increase (decrease) in cash and cash equivalents

27,021


(27,621)

Cash and cash equivalents at beginning of period

114,085


141,706

Cash and cash equivalents at end of period

$141,106


$114,085

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/silicon-labs-announces-record-revenue-for-fourth-quarter-and-full-year-2016-300400039.html

SOURCE Silicon Labs

Contact:
Silicon Labs
Web: http://www.silabs.com