AUSTIN, Texas, September 15, 2009 -
Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance,
analog-intensive, mixed-signal integrated circuits (ICs), today
announced it now expects third quarter revenue to be up 18 to 21 percent
sequentially to a record $123 to $126 million, an increase from the $114
to $119 million range previously forecasted, and well above quarterly
peak revenue levels in 2008.
The revenue upside is due to better than expected demand for both
broadcast audio and MCU products. The strength in the broadcast audio
business is resulting from better than seasonal demand in handsets at
the company’s largest customer, which is expected to moderate in the
fourth quarter, as well as a faster than expected ramp at a new consumer
audio customer.
The company also anticipates further improvement in gross margin in the
third quarter, and therefore, is now projecting it will exceed model
operating performance. The resulting earnings per share estimates for
the quarter have increased by about ten cents versus prior guidance.
GAAP diluted earnings per share for the third quarter are now expected
to increase to $0.40 to $0.42 compared to previous guidance of $0.27 to
$0.32, and non-GAAP diluted earnings per share are now expected to
increase to $0.60 to $0.62 compared to previous guidance of $0.48 to
$0.53. Non-GAAP earnings per share exclude anticipated non-cash charges
for stock compensation expenses.
“We expect to achieve record performance in the third quarter, a
tribute to the quality of the business model we’re pursuing,” said Necip
Sayiner, president and CEO of Silicon Laboratories. “We are very pleased
with the continued strength of the new product cycles and the market
share momentum that has allowed us to outperform despite the economic
headwinds this year.”
The company plans to report complete financial results and provide
fourth quarter guidance on October 28th.
About Silicon Laboratories Inc.
Silicon Laboratories is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs’ diverse portfolio of highly-integrated,
easy-to-use products offers customers significant advantages in
performance, size and power consumption. These patented solutions serve
a broad set of markets and applications including consumer,
communications, computing, industrial and automotive.
Headquartered in Austin, TX, Silicon Labs is a global enterprise with
operations, sales and design activities worldwide. The company is
committed to contributing to our customers’ success by recruiting the
highest quality talent to create industry-changing innovations. For more
information about Silicon Labs, please visit www.silabs.com.
Forward Looking Statements
This press release contains forward-looking statements based on Silicon
Laboratories’ current expectations. The words “believe,” “estimate,”
“expect,” “intend,” “anticipate,” “plan,” “project,” “will,” “guidance”
and similar phrases as they relate to Silicon Laboratories are intended
to identify such forward-looking statements. These forward-looking
statements reflect the current views and assumptions of Silicon
Laboratories 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: risks that
Silicon Laboratories may not be able to maintain its historical growth;
quarterly fluctuations in revenues and operating results; volatile stock
price; average selling prices of products may decrease significantly and
rapidly, dependence on a limited number of products and customers;
difficulties developing new products that achieve market acceptance;
risks that Silicon Laboratories may not be able to manage strains
associated with its growth; dependence on key personnel; difficulties
managing our manufacturers and subcontractors; difficulties managing
international activities; credit risks associated with our accounts
receivable; geographic concentration of manufacturers, assemblers, test
service providers and customers in the Pacific Rim that subjects Silicon
Laboratories’ business and results of operations to risks of natural
disasters, epidemics, war and political unrest; product development
risks; inventory-related risks; intellectual property litigation risks;
risks associated with acquisitions and divestitures; the competitive and
cyclical nature of the semiconductor industry and other factors that are
detailed in Silicon Laboratories’ filings with the SEC. Silicon
Laboratories disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
Note to editors: Silicon Laboratories, Silicon Labs and the Silicon
Labs logo are trademarks of Silicon Laboratories Inc. All other product
names noted herein may be trademarks of their respective holders.
