Silicon Labs Reports Third Quarter 2024 Results
Wireless IoT leader delivers third-quarter results above the midpoint of its guidance
AUSTIN, Texas, Nov. 4, 2024 /PRNewswire/ -- Silicon Labs (NASDAQ:SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the third quarter, which ended September 28, 2024.
"Silicon Labs delivered solid sequential revenue growth as several key design wins began ramping in the quarter," said Matt Johnson, President and Chief Executive Officer at Silicon Labs. "Looking ahead, progress on inventory destocking and demand recovery remains uneven across our end markets. Despite the uncertain market backdrop in the near-term, we remain well-positioned for long-term growth and market share expansion."
Third Quarter Financial Highlights
Revenue was $166 million
Industrial & Commercial revenue for the quarter was $96 million, up 10% sequentially
Home & Life revenue for the quarter was $70 million, up 22% sequentially
Results on a GAAP basis:
GAAP gross margin was 54.3%
GAAP operating expenses were $120 million
GAAP operating loss was $30 million
GAAP diluted loss per share was $(0.88)
Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:
Non-GAAP gross margin was 54.5%
Non-GAAP operating expenses were $99 million
Non-GAAP operating loss was $8 million
Non-GAAP diluted loss per share was $(0.13)
Business Highlights
Silicon Labs' 5th annual IoT developers conference, Works With, expanded its footprint this year with in-person events in key global regions, including Austin, San Jose, Hyderabad, and Shanghai. This signature event series unites device manufacturers, wireless experts, engineers, and industry leaders, and attracted over 500 companies, among them Amazon, Google, Samsung, and Nvidia. Notably, over 60% of attendees were new to Silicon Labs, with one-third from top strategic customer segments. Silicon Labs will further extend Works With virtually on November 20 & 21, reaching thousands of potential and existing customers worldwide.
Announced the general availability of its first Wi-Fi 6 solution: the SiWx917. The 917 family of SoC's is designed from the ground-up for ultra-low-power applications using Wi-Fi 6, Bluetooth, Matter, and IP networking for secure cloud connectivity while offering up to 2 years battery life on a single AAA battery in select IoT applications.
Announced support for Bluetooth Channel Sounding technology on its current xG24 platform, significantly enhancing the accuracy, interoperability, and security of distance measurement between two Bluetooth Low Energy (LE) devices in applications like building access controls, keyless entry, and asset tracking.
Announced that Silicon Labs' MG26 device for Bluetooth and 15.4 connectivity was awarded one of the IoT Evolution's Product of the Year awards. This multiprotocol wireless SoC was announced earlier this year and is built to be future proof as the needs of the IoT grow, featuring the same Matrix Vector Processor for dedicated machine learning as the upcoming Series 3.
Business Outlook
The company expects fourth-quarter revenue to be between $161 to $171 million. The company also estimates the following results:
On a GAAP basis:
GAAP gross margin to be between 54% to 55%
GAAP operating expenses of approximately $118 million to $122 million
GAAP diluted loss per share per share between $(0.75) to $(1.05)
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:
Non-GAAP gross margin to be between 54% to 55%
Non-GAAP operating expenses of approximately $97 million to $99 million
Non-GAAP diluted loss per share between $(0.01) to $(0.21)
Earnings Webcast and Conference Call
Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 3:30 pm CDT today. An audio webcast will be available on Silicon Labs' website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through December 4, 2024.
About Silicon Labs
Silicon Labs (NASDAQ:SLAB) is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, thriving ecosystem, and robust support make us an ideal long-term partner in building advanced industrial, commercial, home and life applications. We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. 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: the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including disruptions in the financial services industry; 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; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); 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, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from 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; the impact of COVID-19 on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs' products and its networks; risks associated with any material weakness in our internal controls over financial reporting; 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 Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 28,2024
September 30,2023
September 28,2024
September 30,2023
Revenues
$ 166,395
$ 203,760
$ 418,137
$ 695,413
Cost of revenues
76,082
84,735
196,172
278,753
Gross profit
90,313
119,025
221,965
416,660
Operating expenses:
Research and development
83,228
79,042
249,787
254,340
Selling, general and administrative
36,793
27,766
109,041
113,363
Operating expenses
120,021
106,808
358,828
367,703
Operating income (loss)
(29,708)
12,217
(136,863)
48,957
Other income (expense):
Interest income and other, net
3,487
2,938
9,009
15,554
Interest expense
(278)
(1,359)
(1,050)
(4,611)
Income (loss) before income taxes
(26,499)
13,796
(128,904)
59,900
Provision for income taxes
2,005
3,388
38,283
23,479
Equity-method loss
—
(60)
—
(1,150)
Net income (loss)
$ (28,504)
$ 10,348
$ (167,187)
