Silicon Labs Announces First Quarter 2020 Results

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 impact of COVID-19 on the U.S. and global economy, including the restrictions on travel and transportation and other actions that may be taken by governmental authorities and disruptions to the business of our customers or our global supply chain, the 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); 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; 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.

CONTACT: Jalene Hoover, +1 (512) 428-1610, Jalene.Hoover@silabs.com

Silicon Laboratories Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)



Three Months Ended


April 4,
2020


March 30,
2019

Revenues

$214,877


$188,113

Cost of revenues

85,711


72,239

Gross profit

129,166


115,874

Operating expenses:




   Research and development

71,223


61,566

   Selling, general and administrative

53,996


49,216

Operating expenses

125,219


110,782

Operating income

3,947


5,092

Other income (expense):




   Interest income and other, net

3,251


2,823

   Interest expense

(5,541)


(4,997)

Income before income taxes

1,657


2,918

Provision (benefit) for income taxes

(587)


(2,480)

Net income

$    2,244


$    5,398





Earnings per share:




   Basic

$      0.05


$      0.12

   Diluted

$      0.05


$      0.12





Weighted-average common shares outstanding:




   Basic

43,642


43,189

   Diluted

44,388


43,716

 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)


Non-GAAP Income
Statement Items


Three Months Ended

April 4, 2020



GAAP

Measure


GAAP

Percent of
Revenue


Stock

Compensation
Expense


Intangible
Asset
Amortization


Acquisition
Related
Items


Restructuring
Charges


Non-GAAP

Measure


Non-GAAP

Percent of
Revenue

Revenues


$214,877
































Gross margin


129,166


60.1%


$     335


$      --


$   151


$     45


$129,697


60.4%


















Research and

   development


71,223


33.1%


7,370


7,167


--


1,434


55,252


25.7%


















Selling, general and

   administrative


53,996


25.2%


7,608


2,505


1,284


1,318


41,281


19.3%


















Operating income


3,947


1.8%


15,313


9,672


1,435


2,797


33,164


15.4%


















Non-GAAP
Earnings Per Share


Three Months Ended

April 4, 2020



GAAP

Measure


Stock

Compensation
Expense*


Intangible
Asset
Amortization*


Acquisition
Related
Items*


Restructuring
Charges*


Non-cash
Interest
Expense*


Income

Tax

Adjustments


Non-
GAAP
Measure

Net income


$  2,244


$15,313


$9,672


$1,435


$2,797


$3,246


$(4,001)


$30,706


















Diluted shares

   outstanding


44,388














44,388


















Diluted earnings

   per share


$    0.05














$    0.69


* Represents pre-tax amounts

 

Unaudited Forward-Looking Statements Regarding Business Outlook

(In millions, except per share data)


Business Outlook


Three Months Ending

July 4, 2020



GAAP

Measure


Non-GAAP

Adjustments*


Non-GAAP

Measure

Gross margin


60.5%


0.5%


61.0%








Operating expenses


$122.0


$29.5


$92.5








Effective tax rate


0.0%


10.5%


10.5%








Diluted earnings (loss) per share - low


$(0.26)


$0.71


$0.45








Diluted earnings per share - high


$(0.03)


$0.71


$0.68


* Non-GAAP adjustments include the following estimates: stock compensation expense of $13.7 million, intangible asset amortization of $13.0 million, acquisition related items of $2.9 million, restructuring charges of $1.2 million, and non-cash interest expense of $3.0 million, and associated tax impact from the aforementioned items. 

 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)



April 4,
2020


December 28,
2019

Assets




Current assets:




   Cash and cash equivalents

$   615,770


$   227,146

   Short-term investments

442,493


498,825

   Accounts receivable, net

74,620


75,639

   Inventories

68,160


73,057

   Prepaid expenses and other current assets

46,994


69,192

Total current assets

1,248,037


943,859

Property and equipment, net

136,391


135,939

Goodwill

398,402


398,402

Other intangible assets, net

124,604


134,279

Other assets, net

63,648


62,374

Total assets

$1,971,082


$1,674,853





Liabilities and Stockholders' Equity




Current liabilities:




   Accounts payable

$     42,147


$     38,899

   Revolving line of credit

310,000


--

   Deferred revenue and returns liability

23,365


19,251

   Other current liabilities

71,221


79,551

Total current liabilities

446,733


137,701

Convertible debt

371,993


368,257

Other non-current liabilities

52,753


53,844

Total liabilities

871,479


559,802

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;  

      43,670 and 43,496 shares issued and outstanding at

      April 4, 2020 and December 28, 2019, respectively

4


4

   Additional paid-in capital

116,553


133,793

   Retained earnings

983,377


980,608

   Accumulated other comprehensive income (loss)

(331)


646

Total stockholders' equity

1,099,603


1,115,051

Total liabilities and stockholders' equity

$1,971,082


$1,674,853

 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Three Months Ended



April 4,
2020


March 30,
2019


Operating Activities





Net income

$    2,244


$    5,398


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





   Depreciation of property and equipment

4,183


4,137


   Amortization of other intangible assets and other assets

9,827


10,320


   Amortization of debt discount and debt issuance costs 

3,736


3,321


   Stock-based compensation expense

15,313


12,584


   Deferred income taxes

(2,364)


(3,530)


   Changes in operating assets and liabilities:





      Accounts receivable

1,542


3,323


      Inventories

4,777


4,488


      Prepaid expenses and other assets

23,576


6,410


      Accounts payable

2,748


714


      Other current liabilities and income taxes

(9,134)


(15,996)


      Deferred revenue and returns liability

4,114


1,477


      Other non-current liabilities

(862)


(631)


Net cash provided by operating activities

59,700


32,015







Investing Activities





Purchases of available-for-sale investments

(70,910)


(63,577)


Sales and maturities of available-for-sale investments

126,920


99,068


Purchases of property and equipment

(4,135)


(3,874)


Purchases of other assets

(370)


(414)


Net cash provided by investing activities

51,505


31,203







Financing Activities





Proceeds from revolving line of credit

310,000


--


Repurchases of common stock

(16,287)


(15,004)


Payment of taxes withheld for vested stock awards

(16,294)


(14,113)


Net cash provided by (used in) financing activities

277,419


(29,117)







Increase in cash and cash equivalents

388,624


34,101


Cash and cash equivalents at beginning of period

227,146


197,043


Cash and cash equivalents at end of period

$615,770


$231,144


 

Cision View original content to download multimedia: http://www.prnewswire.com/news-releases/silicon-labs-announces-first-quarter-2020-results-301048904.html

SOURCE Silicon Labs

Contact:
Company Name: Silicon Labs
Web: http://www.silabs.com
Financial data for Silicon Labs



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