"Silicon Labs delivered another quarter of strong performance, generating record revenue and operating results ahead of model," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "We continue to gain market share and achieve strong design win momentum. We remain confident in our ability to lead and scale in the IoT market despite an increasingly challenging macroeconomic environment."
Third Quarter Financial Highlights
- Revenue increased to $270 million, up 3% sequentially and 46% year-on-year
- Industrial & Commercial revenue for the quarter was $146 million, up 56% year-on-year
- Home & Life revenue for the quarter was $124 million, up 36% year-on-year
- Gross margin of 61% was favorable due to product mix in the quarter
Results on a GAAP basis:
- GAAP gross margin was 61%
- GAAP R&D expenses were $85 million
- GAAP SG&A expenses were $51 million
- GAAP operating income as a percentage of revenue was 11%
- 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 below GAAP to Non-GAAP reconciliation tables were as follows:
- Non-GAAP gross margin was 61%
- Non-GAAP R&D expenses were $69 million
- Non-GAAP SG&A expenses were $43 million
- Non-GAAP operating income as a percentage of revenue was 20%
- Non-GAAP diluted earnings per share were $1.21
Business Highlights
- Hosted the third annual virtual Works With Conference, which drew more than 7,000 registrants from 1,600 unique companies signing up for 67,000 individual sessions. Works With is the premier developer conference for the IoT industry and brings together top technology brands, device manufacturers, industry alliances, designers, and ecosystem providers to build skills, share insights and lead the way toward a more unified wireless experience.
- Announced several new products, including the expansion of the Series 2 SoC family:
- Complete Matter development solutions providing support for Matter over Wi-Fi, Matter over Thread, Bluetooth Low Energy (LE) commissioning, and Matter bridges to Zigbee and Z-Wave, ahead of the Connectivity Standards Alliance release of Matter 1.0 on October 4.
- The Silicon Labs Pro Kit for Amazon Sidewalk, the first end-to-end development platform for Amazon Sidewalk with complete connectivity support. The development kit offers differentiated security with Secure Vault™, sub-gigahertz (GHz) and Bluetooth LE connectivity, and the software and tools for Sidewalk device makers, designers, and developers to get to market faster.
- The FG25 SoC and EFF01 Front End Module (FEM), a new flagship SoC and power amplifier for Wi-SUN, which, when used together, are designed to provide a sub-gigahertz (GHz) transmission range of up to 3 kilometers in dense urban environments with no data loss.
- The SiWx917, Silicon Labs' first Wi-Fi 6 and Bluetooth LE SoC family, designed to be the lowest power, longest battery life Wi-Fi 6 and Bluetooth LE combination SoC in the industry.
- Recognized for excellence as a supplier by three customers, a particularly notable achievement given the challenging supply environment:
- Awarded Cisco's Emerging Supplier of the Year, recognizing Silicon Labs for demonstrating excellence in all of Cisco's core performance areas – quality, technology, flexibility, and productivity, and exceeding expectations to support the success of Cisco and its customers.
- Named as a finalist for Acuity Brands' Supplier of the Year award and commended for our strong partnership during a challenging year.
- Named Collaborator of the Year and a Supplier of the Year by Schneider Electric, marking our performance and close relationship
- Held an official inauguration ceremony at Silicon Labs' new, expanded office in Hyderabad, India. This will be Silicon Labs' largest global center for engineering and wireless connectivity innovation.
Business Outlook
The company expects fourth-quarter revenue to be between $245 to $255 million. The company also estimates the following results:
On a GAAP basis:
- GAAP gross margin of approximately 60%
- GAAP operating expenses of approximately $132 million
- GAAP effective tax rate of approximately 35%
- GAAP diluted earnings per share between $0.35 to $0.45
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%
- Non-GAAP operating expenses of approximately $109 million
- Non-GAAP effective tax rate of approximately 25%
- Non-GAAP diluted earnings per share between $0.93 to $1.03
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 November 2, 2022 , online or by calling (877) 344-7529 (US) or (412) 317-0088 (international) and entering access code 3274420.
