Silicon Labs (NASDAQ: SLAB) reported Q3 EPS of $0.73, in-line with the analyst estimate of $0.73. Revenue for the quarter came in at $221.35 million versus the consensus estimate of $213.04 million.

Third Quarter Financial Highlights

• IoT revenue grew to $133.2 million, up 16% sequentially and 3% year-on-year.
• Infrastructure and Automotive revenue declined to $88.2 million, down 5% sequentially and 6% year-on-year.

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, restructuring charges, non-cash interest expense and other costs associated with convertible notes, and certain other items as set forth in the reconciliation tables below:

• Non-GAAP gross margin was 59.5%.
• Non-GAAP R&D expenses were $56 million.
• Non-GAAP SG&A expenses were $39 million.
• Non-GAAP operating income as a percentage of revenue was 16.9%.
• Non-GAAP diluted earnings per share were $0.73.

"Third quarter revenue exceeded the high end of our guidance range at $221.3 million," said Tyson Tuttle, CEO of Silicon Labs. "Revenue was considerably stronger than expected, with our IoT products leading the way with a record quarter. We see sustained acceleration towards a more connected world, which our products are well-suited to address."

GUIDANCE:

Silicon Labs sees Q4 2020 EPS of $0.68-$0.78, versus the consensus of $0.73. Silicon Labs sees Q4 2020 revenue of $221-231 million, versus the consensus of $214.37 million.

• Non-GAAP gross margin at approximately 59%.
• Non-GAAP operating expenses at approximately $95 million.
• Non-GAAP effective tax rate at 13.0%.
• Non-GAAP diluted earnings per share between $0.68 and $0.78.

For earnings history and earnings-related data on Silicon Labs (SLAB) click here.