About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and solutions for the Internet of Things, Infrastructure, industrial automation, consumer and automotive markets. We solve the electronics industry’s toughest problems, providing customers with significant advantages in performance, energy savings, connectivity and design simplicity. Backed by our world-class engineering teams with strong software and mixed-signal design expertise, Silicon Labs empowers developers with the tools and technologies they need to advance quickly and easily from initial idea to final product. 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; cyber-attacks against our products and our networks; 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, 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 2,
|
April 4,
|
||||||||||
| Revenues | $ | 162,025 | $ | 163,705 | |||||||
| Cost of revenues | 66,494 | 67,336 | |||||||||
| Gross margin | 95,531 | 96,369 | |||||||||
| Operating expenses: | |||||||||||
| Research and development | 49,046 | 46,857 | |||||||||
| Selling, general and administrative | 39,637 | 42,300 | |||||||||
| Operating expenses | 88,683 | 89,157 | |||||||||
| Operating income | 6,848 | 7,212 | |||||||||
| Other income (expense): | |||||||||||
| Interest income | 271 | 192 | |||||||||
| Interest expense | (655 | ) | (745 | ) | |||||||
| Other income (expense), net | (391 | ) | 408 | ||||||||
| Income before income taxes | 6,073 | 7,067 | |||||||||
| Provision for income taxes | 265 | 689 | |||||||||
|
Net income |
$ | 5,808 | $ | 6,378 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 0.14 | $ | 0.15 | |||||||
| Diluted | $ | 0.14 | $ | 0.15 | |||||||
| Weighted-average common shares outstanding: | |||||||||||
| Basic | 41,629 | 42,412 | |||||||||
| Diluted | 42,199 | 43,149 | |||||||||
| Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||||||||||||||
|
Non-GAAP Income
|
Three Months Ended
|
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|
GAAP
|
GAAP
|
Stock
|
Intangible
|
Acquisition
|
Termination
|
Non-
|
Non-GAAP
|
|||||||||||||||||||||||||||||
| Revenues | $ | 162,025 | ||||||||||||||||||||||||||||||||||
| Gross margin | 95,531 | 59.0 | % | $ | 266 | $ | 390 | $ | 426 | $ | -- | $ | 96,613 | 59.6 | % | |||||||||||||||||||||
|
Research and development |
49,046 | 30.3 | % | 4,910 | 5,616 | -- | -- |
38,520 |
23.8 | % | ||||||||||||||||||||||||||
|
Selling, general and administrative |
39,637 |
24.5 |
% |
5,168 | 1,419 | (24 | ) |
104 |
32,970 |
20.3 | % | |||||||||||||||||||||||||
| Operating income | 6,848 | 4.2 | % | 10,344 | 7,425 | 402 | 104 | 25,123 | 15.5 | % | ||||||||||||||||||||||||||
|
Non-GAAP
Earnings Per Share |
Three Months Ended
|
|||||||||||||||||||||||||||||||||||
|
GAAP
|
Stock
|
Intangible
|
Acquisition
|
Termination
|
Income Tax
|
Non-
|
||||||||||||||||||||||||||||||
| Net income | $ | 5,808 | $ | 10,344 | $ | 7,425 | $ | 402 | $ | 104 | $ | (2,618 | ) | $ | 21,465 | |||||||||||||||||||||
|
Diluted shares outstanding |
42,199 |
42,199 |
||||||||||||||||||||||||||||||||||
|
Diluted earnings per share |
$ | 0.14 |
$ |
0.51 |
||||||||||||||||||||||||||||||||
|
* Represents pre-tax amounts |
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|
Unaudited Forward-Looking Statements Regarding Business Outlook |
|||||||||
| Business Outlook |
Three Months Ending
|
||||||||
| High | Low | ||||||||
| Estimated GAAP diluted earnings per share | $ | 0.29 | $ | 0.23 | |||||
| Estimated non-GAAP charges | 0.38 | 0.38 | |||||||
| Estimated non-GAAP diluted earnings per share | $ | 0.67 | $ | 0.61 | |||||
| Silicon Laboratories Inc. | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (In thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
|
April 2,
|
January 2,
|
||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 126,690 | $ | 114,085 | |||||||
| Short-term investments | 126,824 | 128,901 | |||||||||
|
Accounts receivable, net of allowances for doubtful accounts of $657 at April 2, 2016 and $671 at January 2, 2016 |
74,591 | 73,601 | |||||||||
| Inventories | 48,923 | 53,895 | |||||||||
| Prepaid expenses and other current assets | 44,222 | 52,658 | |||||||||
| Total current assets | 421,250 | 423,140 | |||||||||
| Long-term investments | 6,845 | 7,126 | |||||||||
| Property and equipment, net | 130,099 | 131,132 | |||||||||
| Goodwill | 272,722 | 272,722 | |||||||||
| Other intangible assets, net | 113,800 | 121,354 | |||||||||
| Other assets, net | 53,566 | 55,989 | |||||||||
| Total assets | $ | 998,282 | $ | 1,011,463 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 42,579 | $ | 42,127 | |||||||
| Current portion of long-term debt | 10,000 | 10,000 | |||||||||
| Accrued expenses | 58,391 | 52,131 | |||||||||
| Deferred income on shipments to distributors | 41,042 | 35,448 | |||||||||
| Income taxes | 3,084 | 2,615 | |||||||||
| Total current liabilities | 155,096 | 142,321 | |||||||||
| Long-term debt | 65,000 | 67,500 | |||||||||
| Other non-current liabilities | 28,739 | 40,528 | |||||||||
| Total liabilities | 248,835 | 250,349 | |||||||||
| 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; 41,743 and 41,727 shares issued and outstanding at April 2, 2016 and January 2, 2016, respectively |
4 | 4 | |||||||||
| Additional paid-in capital | -- | 13,868 | |||||||||
| Retained earnings | 750,256 | 747,749 | |||||||||
| Accumulated other comprehensive loss | (813 | ) | (507 | ) | |||||||
| Total stockholders' equity | 749,447 | 761,114 | |||||||||
| Total liabilities and stockholders' equity | $ | 998,282 | $ | 1,011,463 | |||||||
| Silicon Laboratories Inc. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
|
April 2,
|
April 4,
|
||||||||||
| Operating Activities | |||||||||||
| Net income | $ | 5,808 | $ | 6,378 | |||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
| Depreciation of property and equipment | 3,310 | 2,987 | |||||||||
| Amortization of other intangible assets and other assets | 7,980 | 6,521 | |||||||||
| Stock-based compensation expense | 10,344 | 10,519 | |||||||||
| Income tax benefit (shortfall) from stock-based awards | (1,025 | ) | 1,773 | ||||||||
| Excess income tax benefit from stock-based awards | (6 | ) | (1,785 | ) | |||||||
| Deferred income taxes | (38 | ) | 6,844 | ||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (990 | ) | 6,564 | ||||||||
| Inventories | 4,580 | (6,424 | ) | ||||||||
| Prepaid expenses and other assets | 9,159 | 8,584 | |||||||||
| Accounts payable | 1,559 | 447 | |||||||||
| Accrued expenses | 6,260 | (5,046 | ) | ||||||||
| Deferred income on shipments to distributors | 5,558 | (1,049 | ) | ||||||||
| Income taxes | 494 | (8,409 | ) | ||||||||
| Other non-current liabilities | (10,584 | ) | (3,816 | ) | |||||||
| Net cash provided by operating activities | 42,409 | 24,088 | |||||||||
| Investing Activities | |||||||||||
| Purchases of available-for-sale investments | (44,547 | ) | (13,037 | ) | |||||||
| Proceeds from sales and maturities of available-for-sale investments | 46,654 | 57,739 | |||||||||
| Purchases of property and equipment | (2,303 | ) | (1,991 | ) | |||||||
| Purchases of other assets | (1,107 | ) | (935 | ) | |||||||
| Acquisition of business, net of cash acquired | -- | (76,899 | ) | ||||||||
| Net cash used in investing activities | (1,303 | ) | (35,123 | ) | |||||||
| Financing Activities | |||||||||||
|
Payment of taxes withheld for vested stock awards, net of proceeds from the issuance of common stock |
(7,523 | ) | (2,561 | ) | |||||||
| Excess income tax benefit from stock-based awards | 6 | 1,785 | |||||||||
| Repurchases of common stock | (18,484 | ) | (10,138 | ) | |||||||
| Payment of acquisition-related contingent consideration | -- | (4,464 | ) | ||||||||
| Payments on debt | (2,500 | ) | (2,583 | ) | |||||||
| Net cash used in financing activities | (28,501 | ) | (17,961 | ) | |||||||
| Increase (decrease) in cash and cash equivalents | 12,605 | (28,996 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 114,085 | 141,706 | |||||||||
| Cash and cash equivalents at end of period | $ | 126,690 | $ | 112,710 | |||||||
