Press Releases

Silicon Labs Announces Fourth Quarter and Fiscal 2013 Results
Record Revenue for 2013
We are very pleased with our performance in the fourth quarter, as our microcontroller and wireless products delivered another record revenue quarter, and we experienced better than expected revenue from Broadcast and Access products
AUSTIN, Texas--(BUSINESS WIRE)--

Silicon Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported financial results for its fourth quarter and fiscal year ended Dec. 28, 2013. Revenue in the fourth quarter was $146.2 million, a slight decrease from the $146.9 million reported in the third quarter. Revenue for fiscal 2013 was a record $580.1 million, compared with $563.3 million in 2012.

Q4 Financial Highlights

On a GAAP basis:

  • Gross margins increased sequentially to 60.6 percent
  • R&D investment increased sequentially to $42.2 million
  • SG&A expenses declined sequentially to $32.3 million
  • Operating income increased sequentially to 9.7 percent of revenue
  • Diluted earnings per share increased sequentially to $0.24

On a non-GAAP basis (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation table below):

  • Gross margins increased sequentially to 61.2 percent
  • R&D expenses increased sequentially to $34.5 million
  • SG&A expenses declined sequentially to $27.7 million
  • Operating income increased sequentially to 18.7 percent
  • Diluted earnings per share increased sequentially to $0.49

Business Highlights

  • Broad-based revenue was $72.4 million, reflecting a record quarter in microcontrollers and wireless offset by lower than expected revenue for timing due to general weakness in the telecom infrastructure market.
  • Broadcast outperformed expectations in the fourth quarter with revenue of $49.6 million.
  • Access grew slightly in the fourth quarter, exceeding expectations, with revenue of $24.3 million.
  • During the fourth quarter, the company announced several important mixed-signal products for Internet of Things applications, including the energy-friendly EFM32™ Zero Gecko MCU family, the ultra-low-power Si106x/8x wireless MCU family, and the next-generation Si701x/2x relative humidity and temperature sensor family.

“We are very pleased with our performance in the fourth quarter, as our microcontroller and wireless products delivered another record revenue quarter, and we experienced better than expected revenue from Broadcast and Access products,” said Tyson Tuttle, CEO of Silicon Labs. “Revenue for 2013 was a record for the company, and we believe we are entering 2014 well positioned in growth markets such as the Internet of Things, smart energy and Internet infrastructure.”

Business Outlook

The company expects revenue in the first quarter to be in the range of $142 million to $146 million. The company expects first quarter earnings per share to be between $0.14 and $0.18 on a GAAP basis and between $0.40 and $0.44 on a non-GAAP basis.

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 simultaneously on Silicon Labs' website under Investor Relations (www.silabs.com). A replay will be available after the call at the same website listed above or by calling 1 (855) 859-2056 or (404) 537-3406 (international) and by entering 39717387. The replay will be available through March 8.

About Silicon Labs

Silicon Labs 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 patented semiconductor solutions offers customers significant advantages in performance, size and power consumption. For more information about Silicon Labs, please visit www.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: 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; dependence on a limited number of products and customers; intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing our distributors, manufacturers and subcontractors; 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 our 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, 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; conflict mineral risks 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 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   Year Ended
   

December 28,
2013

 

December 29,
2012

 

December 28,
2013

 

December 29,
2012

Revenues   $ 146,236     $ 152,461     $ 580,087     $ 563,294  
Cost of revenues     57,638       58,835       227,183       225,277  
Gross margin     88,598       93,626       352,904       338,017  
Operating expenses:                
Research and development     42,168       36,009       157,799       137,952  
Selling, general and administrative     32,276       32,315       130,795       114,390  
Operating expenses     74,444       68,324       288,594       252,342  
Operating income     14,154       25,302       64,310       85,675  
Other income (expense):                
Interest income     237       235       853       1,338  
Interest expense     (807 )     (850 )     (3,293 )     (1,149 )
Other income (expense), net     118       (323 )     157       484  
Income before income taxes     13,702       24,364       62,027       86,348  
Provision for income taxes     3,060       5,669       12,208       22,800  
                                 

Net income

  $ 10,642     $ 18,695     $ 49,819     $ 63,548  
                 
Earnings per share:                
Basic   $ 0.25     $ 0.45     $ 1.17     $ 1.51  
Diluted   $ 0.24     $ 0.44     $ 1.14     $ 1.47  
                 
Weighted-average common shares outstanding:                
Basic     42,972       41,705       42,715       42,136  
Diluted     43,847       42,641       43,537       43,106  
     
     

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

     

Non-GAAP Income
Statement Items

 

Three Months Ended
December 28, 2013

   

GAAP
Measure

 

GAAP
Percent of
Revenue

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Termination
Costs

 

Acquisition
Related
Items

 

Non-
GAAP
Measure

 

Non-
GAAP
Percent of
Revenue

Revenues   $ 146,236                            
                                 
Gross margin     88,598     60.6 %   $ 166   $ 390   $ --   $ 400     $ 89,554   61.2 %
                                 
Research and

development

    42,168     28.8 %     3,979     3,217     447     --      

34,525

  23.6 %
                                 
Selling, general and

administrative

    32,276    

22.1

%

    4,351     729     895    

(1,384

)

   

27,685

  18.9 %
                                 
Operating income     14,154     9.7 %     8,496     4,336     1,342     (984 )     27,344   18.7 %
                                 
                                 

Non-GAAP Diluted
Earnings Per Share

 

Three Months Ended
December 28, 2013

   
       

GAAP
Measure

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Termination
Costs

 

Acquisition
Related
Items

 

Non-
GAAP
Measure

   
Net income       $ 10,642     $ 7,685   $ 2,986   $ 1,179   $ (1,096 )   $ 21,396    
                                 
Diluted shares outstanding

 

  43,847       --     --     --     --       43,847    
                                 
Diluted earnings per share   $ 0.24                     $ 0.49    
                                   
                                   

Unaudited Forward-Looking Statements Regarding Business Outlook
(In thousands, except per share information)

     
Business Outlook  

Three Months Ending
March 29, 2014

    High   Low
Estimated GAAP diluted earnings per share   $ 0.18   $ 0.14
         
Estimated non-GAAP charges     0.26     0.26
         
Estimated non-GAAP diluted earnings per share   $ 0.44   $ 0.40
         
         

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

         
   

December 28,
2013

 

December 29,
2012

Assets        
Current assets:        
Cash and cash equivalents   $ 95,800     $ 105,426  
Short-term investments     179,593       176,565  

Accounts receivable, net of allowances for doubtful accounts of

$797 at December 28, 2013 and $670 at December 29, 2012

    72,124       78,023  
Inventories     45,271       49,579  
Deferred income taxes     18,878       16,652  
Prepaid expenses and other current assets     47,651       41,437  
Total current assets     459,317       467,682  
Long-term investments     10,632       11,369  
Property and equipment, net     132,445       135,271  
Goodwill     228,781       130,265  
Other intangible assets, net     131,593       90,750  
Other assets, net     28,382       36,629  
Total assets   $ 991,150     $ 871,966  
         
Liabilities and Stockholders’ Equity        
Current liabilities:        
Accounts payable   $ 22,126     $ 29,622  
Current portion of long-term debt     7,500       5,000  
Accrued expenses     45,975       40,410  
Deferred income on shipments to distributors     30,853       30,259  
Income taxes     2,693       1,087  
Total current liabilities     109,147       106,378  
Long-term debt     87,500       95,000  
Other non-current liabilities     55,941       20,615  
Total liabilities     252,588       221,993  
Commitments and contingencies        
Stockholders' equity:        
Preferred stock – $0.0001 par value; 10,000 shares authorized; no

shares issued and outstanding

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

42,779 and 41,879 shares issued and outstanding at

December 28, 2013 and December 29, 2012, respectively

    4       4  
Additional paid-in capital     48,630       10,122  
Retained earnings     690,612       640,793  
Accumulated other comprehensive loss     (684 )     (946 )
Total stockholders' equity     738,562       649,973  
Total liabilities and stockholders' equity   $ 991,150     $ 871,966  
     
     

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

     
    Year Ended
   

December 28,
2013

 

December 29,
2012

Operating Activities        
Net income   $ 49,819     $ 63,548  
Adjustments to reconcile net income to cash provided by operating activities:        
Depreciation of property and equipment     13,491       13,621  
Net gain on the purchase of property and equipment     --       (8,457 )
Amortization of other intangible assets and other assets     15,911       14,154  
Impairment of long-lived assets     --       708  
Stock-based compensation expense     30,800       31,176  
Income tax benefit (detriment) from employee stock-based awards     (606 )     1,827  
Excess income tax benefit from employee stock-based awards     (290 )     (1,294 )
Deferred income taxes     3,319       4,725  
Changes in operating assets and liabilities:        
Accounts receivable     8,972       (20,743 )
Inventories     5,588       (13,056 )
Prepaid expenses and other assets     (2,514 )     10,629  
Accounts payable     (3,979 )     7,217  
Accrued expenses     (3,169 )     (3,812 )
Deferred income on shipments to distributors     (2,381 )     4,623  
Income taxes     5,189       (7,816 )
Net cash provided by operating activities     120,150       97,050  
         
Investing Activities        
Purchases of available-for-sale investments     (213,883 )     (192,450 )
Proceeds from sales and maturities of available-for-sale investments     210,824       235,517  
Purchases of property and equipment     (10,472 )     (102,043 )
Purchases of other assets     (5,939 )     (8,508 )
Acquisitions of businesses, net of cash acquired     (86,441 )     (71,852 )
Net cash used in investing activities     (105,911 )     (139,336 )
         
Financing Activities        
Proceeds from issuance of common stock, net of shares withheld for taxes     15,301       15,148  
Excess income tax benefit from employee stock-based awards     290       1,294  
Repurchases of common stock     (26,022 )     (62,019 )
Proceeds from issuance of long-term debt, net     --       98,325  
Payments on debt     (13,434 )     --  
Net cash provided by (used in) financing activities     (23,865 )     52,748  
         
Increase (decrease) in cash and cash equivalents     (9,626 )     10,462  
Cash and cash equivalents at beginning of period     105,426       94,964  
Cash and cash equivalents at end of period   $ 95,800     $ 105,426  

 

Contact:

Silicon Labs
Deborah Stapleton, +1-650-470-4200
Deborah.Stapleton@silabs.com