Silicon Labs Announces Record Quarterly Revenue
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Silicon Labs Announces Record Quarterly Revenue

-- Record IoT Revenue Affirms Pure-Play Focus on Massive IoT Opportunity --

AUSTIN, Texas, April 28, 2021 — (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 first quarter ended April 3, 2021. Revenue exceeded the top end of our initial guidance at $255.5 million, up from $242.9 million in the fourth quarter. First quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.29 and $0.91, respectively.

"Despite significant supply constraints, strong bookings and durable demand momentum drove first quarter revenue to a new record of $255.5 million led by record revenue in IoT which grew 7% sequentially and 34% year-on-year," said Tyson Tuttle, CEO of Silicon Labs. "We continue to lead the market in wireless connectivity for a vast array of intelligent solutions. Last week's announcement to become a pure-play leader of intelligent, wireless connectivity for the IoT coupled with the global economic recovery from the pandemic fuels our excitement to capitalize on the massive growth opportunity in front of us."

First Quarter Financial Highlights

On a GAAP basis:                                                                                         

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, restructuring charges, non-cash interest expense and other costs associated with convertible notes, and certain other items as set forth in the reconciliation tables below:

Product Highlights

Business Highlights

Business Outlook

The company expects second quarter revenue to be in the range of $262 to $272 million, with IoT roughly flat to the first quarter, limited by supply, and Infrastructure & Automotive up, and estimates the following:

On a GAAP basis:

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, restructuring charges, non-cash interest expense and other costs associated with convertible notes, and certain other items as set forth in the reconciliation tables below:

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 (877) 344-7529 (US) or (412) 317-0088 (International) and entering access code 10154019. The replay will be available through May 5, 2021.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. Our world-class engineering team creates products focused on performance, energy savings, connectivity and simplicity. 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: the occurrence of any event, change or other circumstance that could give rise to the termination of the Skyworks asset purchase agreement; the failure to satisfy any of the conditions to the completion of such transaction; the effect of such transaction on the ability of Silicon Labs to retain and hire key personnel and maintain relationships with its customers, suppliers, advertisers, partners and others with whom it does business, or on its operating results and businesses generally; risks associated with the disruption of management's attention from ongoing business operations due to such transaction; the ability to meet expectations regarding the timing and completion of such transaction, including with respect to receipt of required regulatory approvals; the impact of COVID-19 on the U.S. and global economy, including the restrictions on travel and transportation and other actions taken by governmental authorities and disruptions to the business of our customers or our global supply chain that have occurred or may occur in the future, the ongoing impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs; 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; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing Silicon Labs' distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; 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 its 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 or pandemics, 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 Silicon Labs' products and its networks 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, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

 (In thousands, except per share data)

(Unaudited)



Three Months Ended


April 3,
2021


April 4,
2020

Revenues

$255,505


$214,877

Cost of revenues

104,922


85,711

Gross profit

150,583


129,166

Operating expenses:




   Research and development

76,474


71,223

   Selling, general and administrative

51,950


53,996

Operating expenses

128,424


125,219

Operating income

22,159


3,947

Other income (expense):




   Interest income and other, net

2,875


3,251

   Interest expense

(11,324)


(5,541)

Income before income taxes

13,710


1,657

Provision (benefit) for income taxes

201


(587)

Net income

$  13,509


$    2,244





Earnings per share:




   Basic

$      0.31


$      0.05

   Diluted

$      0.29


$      0.05





Weighted-average common shares outstanding:




   Basic

44,160


43,642

   Diluted

45,832


44,388

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)


Non-GAAP Income
Statement Items


Three Months Ended

April 3, 2021



GAAP

Measure


GAAP

Percent of
Revenue


Stock

Compensation
Expense


Intangible
Asset
Amortization


Non-GAAP

Measure


Non-GAAP

Percent of
Revenue

Revenues


$255,505
























Gross profit


150,583


58.9%


$     337


$        --


$150,920


59.1%














Research and

   development


76,474


29.9%


7,024


8,390


61,060


23.9%














Selling, general and

   administrative


51,950


20.3%


6,466


3,315


42,169


16.5%














Operating income


22,159


8.7%


13,827


11,705


47,691


18.7%

 

Non-GAAP
Earnings Per Share


Three Months Ended
April 3, 2021



GAAP

Measure


Stock

Compensation Expense*


Intangible
Asset
Amortization*


Investment
Fair Value
Adjustments*


Interest Expense

Adjustments*


Income

Tax

Adjustments


Non-
GAAP
Measure

Net income


$13,509


$13,827


$11,705


$(1,801)


$9,307


$(4,856)


$41,691
















Diluted shares

   outstanding


45,832












45,832
















Diluted earnings

   per share


$  0.29












$    0.91


* Represents pre-tax amounts

 

Unaudited Forward-Looking Statements Regarding Business Outlook

(In millions, except per share data)


Business Outlook


Three Months Ending

July 3, 2021



GAAP

Measure


Non-GAAP

Adjustments*


Non-GAAP

Measure

Gross margin


57-58%


0%


57-58%








Operating expenses


$130


$26


$104








Effective tax rate


7%


4.5%


11.5%








Diluted earnings per share - low


$0.28


$0.60


$0.88








Diluted earnings per share - high


$0.38


$0.60


$0.98


* Non-GAAP adjustments include the following estimates: stock compensation expense of $14 million, intangible asset amortization of $12 million, interest expense adjustments of $5 million, and the associated tax impact from the aforementioned items.

 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)



April 3,
2021


January 2,
2021

Assets




Current assets:




   Cash and cash equivalents

$   205,224


$   202,720

   Short-term investments

367,708


521,963

   Accounts receivable, net

103,699


95,169

   Inventories

79,244


66,662

   Prepaid expenses and other current assets

105,056


89,307

Total current assets

860,931


975,821

Property and equipment, net

141,000


139,439

Goodwill

631,932


631,932

Other intangible assets, net

154,379


166,084

Other assets, net

82,381


80,211

Total assets

$1,870,623


$1,993,487





Liabilities and Stockholders' Equity




Current liabilities:




   Accounts payable

$     68,998


$     54,949

   Current portion of convertible debt, net

--


134,480

   Deferred revenue and returns liability

13,450


12,986

   Other current liabilities

68,351


82,083

Total current liabilities

150,799


284,498

Convertible debt, net

434,288


428,945

Other non-current liabilities

78,557


80,203

Total liabilities

663,644


793,646

Commitments and contingencies




Stockholders' equity:




   Preferred stock – $0.0001 par value; 10,000 shares authorized; no

      shares issued

--


--

   Common stock – $0.0001 par value; 250,000 shares authorized;  

      44,749 and 43,925 shares issued and outstanding at

      April 3, 2021 and January 2, 2021, respectively

4


4

   Additional paid-in capital

199,576


204,359

   Retained earnings

1,007,173


993,664

   Accumulated other comprehensive income

226


1,814

Total stockholders' equity

1,206,979


1,199,841

Total liabilities and stockholders' equity

$1,870,623


$1,993,487

 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Three Months Ended


April 3,
2021


April 4,
2020


Operating Activities





Net income

$  13,509


$    2,244


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





   Depreciation of property and equipment

4,529


4,183


   Amortization of other intangible assets and other assets

11,705


9,827


   Amortization of debt discount and debt issuance costs 

6,456


3,736


   Loss on extinguishment of convertible debt

3,370


--


   Stock-based compensation expense

13,826


15,313


   Deferred income taxes

(3,197)


(2,364)


   Changes in operating assets and liabilities:





      Accounts receivable

(8,530)


1,542


      Inventories

(12,626)


4,777


      Prepaid expenses and other assets

(13,621)


23,576


      Accounts payable

14,116


2,748


      Other current liabilities and income taxes

(13,429)


(9,134)


      Deferred revenue and returns liability

464


4,114


      Other non-current liabilities

(2,066)


(862)


Net cash provided by operating activities

14,506


59,700







Investing Activities





Purchases of available-for-sale investments

(8,251)


(70,910)


Sales and maturities of available-for-sale investments

161,392


126,920


Purchases of property and equipment

(6,176)


(4,135)


Purchases of other assets

(578)


(370)


Net cash provided by investing activities

146,387


51,505







Financing Activities





Proceeds from revolving line of credit

--


310,000


Payments on debt

(140,572)


--


Repurchases of common stock

--


(16,287)


Payment of taxes withheld for vested stock awards

(17,817)


(16,294)


Net cash provided by (used in) financing activities

(158,389)


277,419







Increase in cash and cash equivalents

2,504


388,624


Cash and cash equivalents at beginning of period

202,720


227,146


Cash and cash equivalents at end of period

$205,224


$615,770


 

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SOURCE Silicon Labs

Contact:
Company Name: Silicon Labs, Skyworks Solutions, Inc.
Austin Dean
Phone: +1 (512) 532-9432
Email Contact
Web: http://www.silabs.com
Financial data for Silicon Labs, Skyworks Solutions, Inc.