Silicon Labs Reports Second Quarter 2024 Results
Wireless IoT leader delivers strong second-quarter growth
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Second Quarter Financial Highlights
- Revenue was
$145 million - Industrial & Commercial revenue for the quarter was
$88 million - Home & Life revenue for the quarter was
$57 million
Results on a GAAP basis:
- GAAP gross margin was 53%
- GAAP operating expenses were
$125 million - GAAP operating loss was
$48 million - GAAP diluted loss per share was
$(2.56)
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:
- Non-GAAP gross margin was 53%
- Non-GAAP operating expenses were
$102 million - Non-GAAP operating loss was
$25 million - Non-GAAP diluted loss per share was
$(0.56)
Business Highlights
- Due to popular demand,
Silicon Labs is expanding its fifth annual Works WithDevelopers Conference this fall with live events in San Jose, Hyderabad, andShanghai . Each event's agenda is tailored to regional market needs and covers key IoT topics like Matter, Smart Cities, AI and Machine Learning, and Security. - Announced
Silicon Labs' new xG22E family of wireless SoCs, its first-ever family designed to operate within the ultra-low power envelope required for battery-free, energy harvesting applications. The new family consists of the BG22E, MG22E, and FG22E. AsSilicon Labs' most energy-efficient SoCs to date, all three SoCs will enable IoT device makers to build high-performance, Bluetooth Low Energy (LE), 802.15.4-based, or proprietary 2.4GHz. wireless devices for battery-optimized and battery-free devices that can harvest energy from external sources in their environments like indoor or outdoor ambient light, ambient radio waves, and kinetic motion.
Business Outlook
The company expects third-quarter revenue to be between
On a GAAP basis:
- GAAP gross margin to be between 54% to 56%
- GAAP operating expenses of approximately
$123 million to$125 million - GAAP diluted loss per share per share between
$(0.95) to$(1.25)
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:
- Non-GAAP gross margin to be between 54% to 56%
- Non-GAAP operating expenses of approximately
$101 million to$103 million - Non-GAAP diluted loss per share between
$(0.10) to$(0.30)
Earnings Webcast and Conference Call
About
Forward-Looking Statements
This press release contains forward-looking statements based on
Note to editors:
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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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Six Months Ended |
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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: |
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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) |
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$ 10,956 |
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$ (138,683) |
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$ 24,923 |
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Earnings (loss) per share: |
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Basic |
$ (2.56) |
|
$ 0.35 |
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$ (4.33) |
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$ 0.78 |
Diluted |
$ (2.56) |
|
$ 0.33 |
|
$ (4.33) |
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$ 0.75 |
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Weighted-average common shares outstanding: |
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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,
The non-GAAP financial measurements do not replace the presentation of
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures |
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(In thousands, except per share data) |
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Three Months Ended
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Non-GAAP Income Statement Items |
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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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Intangible Amortization |
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Termination |
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Non-GAAP Measure |
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Non-GAAP Percent of Revenue |
Revenues |
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$ 145,367 |
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Gross profit |
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76,583 |
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52.7 % |
|
$ 412 |
|
$ — |
|
$ — |
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$ 76,995 |
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53.0 % |
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Research and development |
|
85,909 |
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59.1 % |
|
10,217 |
|
6,061 |
|
902 |
|
68,729 |
|
47.3 % |
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Selling, general and administrative |
|
38,695 |
|
26.6 % |
|
5,215 |
|
19 |
|
106 |
|
33,355 |
|
22.9 % |
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|
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Operating expenses |
|
124,604 |
|
85.7 % |
|
15,432 |
|
6,080 |
|
1,008 |
|
102,084 |
|
70.2 % |
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Operating income (loss) |
|
(48,021) |
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(33.0 %) |
|
15,844 |
|
6,080 |
|
1,008 |
|
(25,089) |
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(17.3 %) |
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Three Months Ended
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Non-GAAP Loss Per Share |
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GAAP Measure |
|
Stock Compensation Expense* |
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Intangible Asset Amortization* |
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Termination Costs* |
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Income Tax Adjustments |
|
Non- GAAP Measure |
Net income (loss) |
|
$ (82,157) |
|
$ 15,844 |
|
$ 6,080 |
|
$ 1,008 |
|
$ 41,176 |
|
$ (18,049) |
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Diluted shares outstanding |
|
32,124 |
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32,124 |
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Diluted loss per share |
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$ (2.56) |
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$ (0.56) |
* Represents pre-tax amounts |
Unaudited Forward-Looking Statements Regarding Business Outlook |
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(In millions, except per share data) |
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Three Months Ended
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Business Outlook |
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GAAP Measure |
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Non-GAAP Adjustments** |
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Non-GAAP Measure |
Gross margin |
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54% to 56% |
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— % |
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54% to 56% |
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Operating expenses |
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Diluted loss per share |
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** |
Non-GAAP adjustments include the following estimates: stock compensation expense of |
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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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Assets |
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Current assets: |
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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 |
|
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 |
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Current liabilities: |
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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 |
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Stockholders' equity: |
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Preferred stock – |
— |
|
— |
Common stock – |
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 |
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Condensed Consolidated Statements of Cash Flows |
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(In thousands) |
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(Unaudited) |
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Six Months Ended |
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Operating Activities |
|
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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: |
|
|
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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) |
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Investing Activities |
|
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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 |
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Financing Activities |
|
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|
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) |
|
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|
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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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