Revenue and Earnings Exceed Guidance
AUSTIN, Texas — (BUSINESS WIRE) — October 28, 2015 — Silicon Labs (NASDAQ: SLAB), a leading provider of silicon, software and system solutions for a smarter, more connected world, today reported financial results for its third quarter ended October 3, 2015. Revenue in the third quarter was just above the high end of guidance at $156.2 million, down from $164.9 million in the second quarter. Non-GAAP earnings per share for the third quarter were $0.51 versus the Company’s third quarter guidance range of $0.39 to $0.45.
Third Quarter Financial Highlights
On a GAAP basis:
- Gross margin was 59.8 percent
- R&D expenses were $46.5 million
- SG&A expenses were $35.7 million
- Operating income as a percentage of revenue was 7.2 percent
- Diluted earnings per share were $0.23
On a non-GAAP basis (results exclude the impact of stock compensation, amortization of acquired intangible assets and certain other items as set forth in the reconciliation tables below):
- Gross margin was 60.2 percent
- R&D expenses were $36.6 million
- SG&A expenses were $31.4 million
- Operating income as a percentage of revenue was 16.7 percent
- Diluted earnings per share were $0.51
- IoT product revenue declined slightly to $65.3 million, delivering 25% year-on-year growth
- Infrastructure product revenue established a new record at $31.1 million
- Broadcast revenue declined less than expected to $36.5 million
- Access revenue declined to $23.3 million, as expected
- Announced the BGM111 Blue Gecko module with our pre-installed Bluetooth Smart software stack and BGScript™ scripting language, providing a plug-and-play wireless connectivity solution with a seamless SoC migration path.
- Released our sixth-generation iWRAP™ software supported by our simple-to-use scripting language, easing the complexity of adding Bluetooth 3.0 connectivity to audio accessories.
- Introduced a new voice-enabled remote control reference design to address the growing demand for voice control in the connected home.
- Released a new version of the Simplicity Studio™ development platform featuring a new real-time Energy Profiler tool to help developers optimize their designs for low energy.
- Delivered our highly anticipated Thread wireless software stack built on our many years of expertise and the industry’s most advanced mesh networking software development tools.
- Launched the Si8920 isolated amplifier, providing the industry’s fastest current sensing capability for power control systems including industrial motor drives and inverters.
- Introduced the Si5348 network synchronizer clock, providing the industry’s lowest jitter timing solution to drive pervasive adoption of SyncE and IEEE 1588 network synchronization.
- Received a favorable, final determination on the International Trade Commission investigation initiated by Cresta Technology.
The company expects revenue in the fourth quarter to be in the range of
$156 million to $161 million. Fourth quarter diluted earnings per share
are expected to be between $0.05 and $0.11 on a GAAP basis and between
$0.45 and $0.51 on a non-GAAP basis.