"The Silicon Labs team executed well in the first quarter, furthering our leadership position within IoT through deep customer and industry relationships," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "With a challenging macro backdrop, we are focused on driving operational efficiencies, supporting new customer ramps, and investing in the people and products that will allow us to outperform the market and capture the exciting growth potential ahead."
First Quarter Financial Highlights
- Revenue was $247 million, up 6% year-on-year
- Industrial & Commercial revenue for the quarter was $151 million
- Home & Life revenue for the quarter was $96 million
- Gross margin was 62.3%
Results on a GAAP basis:
- GAAP gross margin was 62.3%
- GAAP R&D expenses were $89 million
- GAAP SG&A expenses were $45 million
- GAAP operating income as a percentage of revenue was 8%
- GAAP diluted earnings per share were $0.41
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 62.5%
- Non-GAAP R&D expenses were $70 million
- Non-GAAP SG&A expenses were $37 million
- Non-GAAP operating income as a percentage of revenue was 19%
- Non-GAAP diluted earnings per share were $1.12
Business Highlights
- Announced general availability for our flagship FG25 sub-Ghz SoC. The FG25 is ideal for long-range, low-power communications, capable of broadcasting more than 1km with minimal data loss in dense, urban environments. With Wi-SUN certification, the FG25 also supports high data bandwidth of up to 3.6 Megabits per second, which is critical for enabling the large networks needed by smart cities where the nodes can number in the thousands.
- Announced a new integrated circuit family designed for the smallest form factor IoT devices: the xG27 family of Bluetooth SoCs. The xG27 family offers IoT device designers the energy efficiency, high performance, security, and wireless connectivity ideal for tiny, battery-optimized devices like connected medical devices, wearables, asset monitoring tags, and smart sensors.
- Silicon Labs announced the availability of its Pro Kit for Amazon Sidewalk, which has been developed to simplify the development process, reduce costs, and accelerate time to revenue for Amazon Sidewalk devices. As one of Amazon Sidewalk's only three qualified hardware partners for developing Amazon Sidewalk devices, our Pro Kit provides all the necessary tools for developing high-volume, scalable IoT applications. It is also designed to support the development of wireless IoT-based devices on Bluetooth and sub-GHz wireless protocols for Amazon Sidewalk. The Pro Kit for Amazon Sidewalk was also recently awarded Embedded Computing Design's Best in Show Award at the Embedded World Conference in Nuremberg, Germany, in March.
- Issued a notice of redemption on our outstanding 2025 convertible notes. Prior to the consummation of the redemption, the holders of the notes are entitled to convert such notes into shares of our common stock at a rate of 8.6081 shares per $1,000 principal amount of notes. We intend to settle the par value of the notes, $535M, in cash and any in-the-money value assignable to the notes in shares. The notes redemption process will be completed on June 20, 2023.
Business Outlook
The company expects second-quarter revenue to be between $238 to $248 million. The company also estimates the following results:
On a GAAP basis:
- GAAP gross margin of approximately 60%
- GAAP operating expenses of approximately $131 million
- GAAP effective tax rate of approximately 34%
- 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 to be between 60% and 61%
- Non-GAAP operating expenses of approximately $106 million
- Non-GAAP effective tax rate of approximately 25%
- Non-GAAP diluted earnings per share between $0.98 to $1.08
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 May 26, 2023, online or by calling (877) 344-7529 (US) or (412) 317-0088 (international) and entering access code 6021433.
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.
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