"We continue to gain momentum, building on strong design win performance, a growing opportunity funnel and market share expansion despite the challenging macro environment. We delivered record revenue in the quarter and operating results ahead of model, driving strong EPS growth," said Matt Johnson, President and Chief Executive Officer of Silicon Labs. "We just marked the one-year anniversary of becoming a pure-play IoT company, and we are more confident than ever in our ability to lead and scale in the large and growing IoT wireless market."
Second Quarter Financial Highlights
- Revenue increased to $263 million, up 13% sequentially and 55% year-on-year
- Industrial & Commercial revenue for the quarter was $144 million, up 61% year-on-year
- Home & Life revenue for the quarter was $119 million, up 49% year-on-year
- Gross margin of 62% was slightly favorable due to product mix in the quarter
Results on a GAAP basis:
- GAAP gross margin was 62%
- GAAP R&D expenses were $84 million
- GAAP SG&A expenses were $49 million
- GAAP operating income as a percentage of revenue was 12%
- GAAP diluted earnings per share were $0.60
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 reconciliation tables were as follows:
- Non-GAAP gross margin was 62%
- Non-GAAP R&D expenses were $68 million
- Non-GAAP SG&A expenses were $41 million
- Non-GAAP operating income as a percentage of revenue was 21%
- Non-GAAP diluted earnings per share were $1.17
Business Highlights
- Announced a new Bluetooth Location Services solution using accurate, low-power Bluetooth devices to simplify Angle of Arrival (AoA) and Angle of Departure (AoD) location services. This new platform combines the industry-leading energy efficiency of Silicon Labs' BG22 system-in-a package (SiP) modules and SoCs, which can operate for up to ten years on only a coin cell battery, with advanced software that can track assets, improve indoor navigation, and locate tags with sub-meter accuracy.
- Completed the buyback of $350 million of the company's shares through the most recent open market repurchase program, resulting in the retirement of 2.5 million shares and bringing the year-to-date total for share repurchases to $600 million, retiring a total of 4.3 million shares. Additionally, the company's board of directors has authorized a new $250 million open market repurchase program of the company's common stock, through the end of 2023.
- Announced the appointment of Robert ("Bob") Conrad to the company's board of directors. Conrad brings nearly 40 years of experience in the semiconductor industry, most recently with NXP Semiconductors (NASDAQ: NXPI) as SVP of the Automotive Microcontrollers and Processors Business until his retirement in 2019. In addition, Bob brings significant experience driving strategic focus and successfully scaling businesses.
- William ("Bill") Wood announced he will not stand for reelection and will be retiring from the Silicon Labs board after 25 years of service. Bill joined the board of directors in 1997 and served as lead director from 2005-2021. His board tenure concludes at the 2023 annual meeting of stockholders.
"Bill Wood has been instrumental to Silicon Labs' success since the very beginning of our journey," said Johnson. "We're grateful for his leadership throughout the years and wish him the very best."
Business Outlook
The company expects third-quarter revenue to be in the range of $265 to $275 million. The company also estimates the following results:
On a GAAP basis:
- GAAP gross margin of approximately 60%
- GAAP operating expenses of approximately $137 million
- GAAP effective tax rate of approximately 36%
- GAAP diluted earnings per share between $0.49 to $0.59
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 of approximately 60.5%
- Non-GAAP operating expenses of approximately $113 million
- Non-GAAP effective tax rate of approximately 26%
- Non-GAAP diluted earnings per share between $1.08 to $1.18
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 silabs.com/investors and make a replay available through August 3, 2022, online or by calling (877) 344-7529 (US) or (412) 317-0088 (international) and entering access code 2437694.
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
