PR Newswire
AUSTIN, Texas, Jan. 31, 2018
AUSTIN, Texas, Jan. 31, 2018 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), a leading provider of silicon, software and solutions for a smarter, more connected world, today reported financial results for its fourth quarter ended December 30, 2017. Revenue in the fourth quarter ended at the high end of guidance at $201 million, up from $199 million in the third quarter, and establishing a new all-time record. Fourth quarter GAAP (loss) per share was $(0.11), which includes an approximate $(0.60) per share impact from U.S. corporate tax reform, resulting from a $26 million charge to the GAAP tax provision. Fourth quarter non-GAAP diluted earnings per share were $0.93.
"We are very pleased to report outstanding fourth quarter and full-year 2017 financial performance, including 10 percent year-on-year product revenue growth for Q4 and 11 percent for the year," said Tyson Tuttle, CEO of Silicon Labs. "With the combined effort of our 1,300 employees and the support of our business partners and customers worldwide, we have transformed our business to address large, high-quality, sustainable and growing market trends in IoT, green energy and Internet infrastructure. Becoming a $1 billion company is within our sight."
Fourth Quarter Financial Highlights
On a GAAP basis:
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, non-cash interest expense on convertible notes, the effect of the Tax Cuts & Jobs Act of 2017, and certain other items as set forth in the reconciliation tables below:
Product Highlights
Business Highlights
Business Outlook
The company expects revenue in the first quarter to be in the range of $196 million to $202 million, and also estimates the following:
On a GAAP basis:
On a non-GAAP basis, and excluding the impact of stock compensation, amortization of acquired intangible assets, non-cash interest expense on convertible notes, and certain other items as set forth in the reconciliation tables below:
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 on Silicon Labs' website (www.silabs.com) under Investor Relations. 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 entering conference 88340275. The replay will be available through February 28, 2018.
About Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and solutions for a smarter, more connected world. Our award-winning technologies are shaping the future of the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. Our world-class engineering team creates products focused on performance, energy savings, connectivity and simplicity. 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.
CONTACT: Jalene Hoover, +1 (512) 428-1610, [email protected]
Silicon Laboratories Inc. | ||||||||
Condensed Consolidated Statements of Income | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
Year Ended | |||||||
December 30, |
December 31, |
December 30, |
December 31, |
|||||
Revenues |
$201,018 |
$182,610 |
$768,867 |
$697,626 |
||||
Cost of revenues |
81,754 |
73,134 |
314,676 |
276,122 |
||||
Gross margin |
119,264 |
109,476 |
454,191 |
421,504 |
||||
Operating expenses: |
||||||||
Research and development |
52,735 |
50,626 |
209,491 |
199,744 |
||||
Selling, general and administrative |
40,139 |
38,767 |
159,726 |
155,483 |
||||
Operating expenses |
92,874 |
89,393 |
369,217 |
355,227 |
||||
Operating income |
26,390 |
20,083 |
84,974 |
66,277 |
||||
Other income (expense): |
||||||||
Interest income and other, net |
1,963 |
357 |
6,057 |
806 |
||||
Interest expense |
(4,863) |
(648) |
(14,128) |
(2,587) |
||||
Income before income taxes |
23,490 |
19,792 |
76,903 |
64,496 |
||||
Provision (benefit) for income taxes |
28,342 |
(317) |
29,811 |
3,002 |
||||
Net income (loss) |
$ (4,852) |
$ 20,109 |
$ 47,092 |
$ 61,494 |
||||
Earnings (loss) per share: |
||||||||
Basic |
$ (0.11) |
$ 0.48 |
$ 1.11 |
$ 1.47 |
||||
Diluted |
$ (0.11) |
$ 0.47 |
$ 1.09 |
$ 1.45 |
||||
Weighted-average common shares outstanding: |
||||||||
Basic |
42,656 |
41,850 |
42,446 |
41,713 |
||||
Diluted |
42,656 |
42,728 |
43,332 |
42,376 |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Non-GAAP Income |
Three Months Ended December 30, 2017 | |||||||||||||||||||||||||
GAAP Measure |
GAAP Percent of |
Stock Compensation |
Intangible |
Acquisition |
Non-GAAP Measure |
Non-GAAP Percent of | ||||||||||||||||||||
Revenues |
$201,018 |
|||||||||||||||||||||||||
Gross margin |
119,264 |
59.3% |
$ 287 |
$ -- |
$ -- |
$119,551 |
59.5% | |||||||||||||||||||
Research and development |
52,735 |
26.2% |
5,611 |
4,943 |
-- |
42,181 |
21.0% | |||||||||||||||||||
Selling, general and administrative |
40,139 |
20.0% |
5,847 |
1,647 |
(110) |
32,755 |
16.3% | |||||||||||||||||||
Operating income |
26,390 |
13.1% |
11,745 |
6,590 |
(110) |
44,615 |
22.2% | |||||||||||||||||||
Non-GAAP |
Three Months Ended December 30, 2017 | |||||||||||||||||||||||||
GAAP Measure |
Stock Compensation |
Intangible |
Acquisition |
Non-cash |
Income Tax |
Non-GAAP Measure | ||||||||||||||||||||
Net income (loss) |
$ (4,852) |
$11,745 |
$6,590 |
$(110) |
$2,748 |
$24,631 |
$40,752 | |||||||||||||||||||
GAAP Measure |
Dilutive Securities Excluded From GAAP Measure Due to Net Loss |
Non-GAAP Measure | ||||||||||||||||||||||||
Diluted shares outstanding |
42,656 |
1,088 |
43,744 | |||||||||||||||||||||||
Diluted earnings (loss) per share |
$ (0.11) |
$ 0.93 | ||||||||||||||||||||||||
* Represents pre-tax amounts |
Unaudited Forward-Looking Statements Regarding Business Outlook | ||||||
(In millions, except per share data) | ||||||
Business Outlook |
Three Months Ending March 31, 2018 | |||||
GAAP Measure |
Non-GAAP Adjustments |
Non-GAAP Measure | ||||
Gross margin |
59.0% |
0.25% |
59.25% | |||
Operating expenses |
$98 |
$18 |
$80 | |||
Effective tax rate |
(15.0)% |
27.5% |
12.5% | |||
Diluted earnings per share - low |
$0.42 |
$0.31 |
$0.73 | |||
Diluted earnings per share - high |
$0.48 |
$0.31 |
$0.79 |
Silicon Laboratories Inc. | |||
Condensed Consolidated Balance Sheets | |||
(In thousands, except per share data) | |||
(Unaudited) | |||
December 30, 2017 |
December 31, | ||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 269,366 |
$ 141,106 | |
Short-term investments |
494,657 |
153,961 | |
Accounts receivable, net |
71,367 |
74,401 | |
Inventories |
73,132 |
59,578 | |
Prepaid expenses and other current assets |
39,120 |
61,805 | |
Total current assets |
947,642 |
490,851 | |
Property and equipment, net |
127,682 |
129,559 | |
Goodwill |
288,227 |
276,130 | |
Other intangible assets, net |
83,144 |
103,565 | |
Other assets, net |
88,387 |
81,739 | |
Total assets |
$1,535,082 |
$1,081,844 | |
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 38,851 |
$ 39,577 | |
Deferred income on shipments to distributors |
50,115 |
45,568 | |
Other current liabilities |
73,359 |
54,550 | |
Total current liabilities |
162,325 |
139,695 | |
Long-term debt |
-- |
72,500 | |
Convertible debt |
341,879 |
-- | |
Other non-current liabilities |
77,862 |
42,691 | |
Total liabilities |
582,066 |
254,886 | |
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; 42,707 and 41,889 shares issued and outstanding at December 30, 2017 and December 31, 2016, respectively |
4 |
4 | |
Additional paid-in capital |
102,862 |
24,463 | |
Retained earnings |
851,307 |
801,999 | |
Accumulated other comprehensive income (loss) |
(1,157) |
492 | |
Total stockholders' equity |
953,016 |
826,958 | |
Total liabilities and stockholders' equity |
$1,535,082 |
$1,081,844 |
Silicon Laboratories Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
Year Ended | |||
December 30, |
December 31, | ||
Operating Activities |
|||
Net income |
$ 47,092 |
$ 61,494 | |
Adjustments to reconcile net income to cash provided by |
|||
Depreciation of property and equipment |
14,766 |
13,216 | |
Amortization of other intangible assets and other assets |
27,246 |
27,715 | |
Amortization of debt discount and debt issuance costs |
10,146 |
-- | |
Stock-based compensation expense |
44,752 |
39,628 | |
Income tax shortfall from stock-based awards |
-- |
(1,671) | |
Deferred income taxes |
(26,452) |
(4,087) | |
Changes in operating assets and liabilities: |
|||
Accounts receivable |
3,234 |
46 | |
Inventories |
(13,416) |
(6,093) | |
Prepaid expenses and other assets |
25,266 |
(3,568) | |
Accounts payable |
(468) |
263 | |
Other current liabilities and income taxes |
61,924 |
2,879 | |
Deferred income on shipments to distributors |
4,453 |
9,713 | |
Other non-current liabilities |
(9,022) |
(10,625) | |
Net cash provided by operating activities |
189,521 |
128,910 | |
Investing Activities |
|||
Purchases of available-for-sale investments |
(636,363) |
(185,231) | |
Sales and maturities of available-for-sale investments |
294,452 |
161,921 | |
Purchases of property and equipment |
(12,252) |
(10,927) | |
Purchases of other assets |
(4,960) |
(8,801) | |
Acquisitions of businesses, net of cash acquired |
(15,168) |
(6,546) | |
Net cash used in investing activities |
(374,291) |
(49,584) | |
Financing Activities |
|||
Proceeds from issuance of long-term debt, net |
389,468 |
-- | |
Payments on debt |
(72,500) |
(5,000) | |
Repurchases of common stock |
-- |
(40,543) | |
Payment of taxes withheld for vested stock awards |
(15,753) |
(10,561) | |
Proceeds from the issuance of common stock |
11,815 |
13,299 | |
Payment of acquisition-related contingent consideration |
-- |
(9,500) | |
Net cash provided by (used in) financing activities |
313,030 |
(52,305) | |
Increase in cash and cash equivalents |
128,260 |
27,021 | |
Cash and cash equivalents at beginning of period |
141,106 |
114,085 | |
Cash and cash equivalents at end of period |
$269,366 |
$141,106 |
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SOURCE Silicon Labs
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