Silicon Labs Reports Fourth Quarter 2024 Results
Wireless IoT leader delivers in-line fourth-quarter results and guides to sequential growth in first quarter
"The Silicon Labs team executed well to close out 2024, with fourth quarter revenue nearly doubling from the same quarter one year ago," said
Fourth Quarter Financial Highlights
- Revenue was
$166 million - Industrial & Commercial revenue for the quarter was
$89 million , down 8% sequentially - Home & Life revenue for the quarter was
$78 million , up 11% sequentially
Results on a GAAP basis:
- GAAP gross margin was 54.3%
- GAAP operating expenses were
$119 million - GAAP operating loss was
$29 million - GAAP diluted loss per share was
$(0.73)
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 54.6%
- Non-GAAP operating expenses were
$98 million - Non-GAAP operating loss was
$7 million - Non-GAAP diluted loss per share was
$(0.11)
Business Outlook
The company expects first-quarter revenue to be between
On a GAAP basis:
- GAAP gross margin to be between 54% to 56%
- GAAP operating expenses of approximately
$128 million to$130 million - GAAP diluted loss 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 56%
- Non-GAAP operating expenses of approximately
$103 million to$105 million - Non-GAAP diluted earnings (loss) per share between
$0.01 to$(0.19)
Earnings Webcast and Conference Call
Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at
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 tariffs or any other policy changes; geographic concentration of manufacturers, assemblers, test service providers and customers in
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 | Year Ended | ||||||
|
|
|
| ||||
Revenues | $ 166,249 | $ 86,845 | $ 584,386 | $ 782,258 | |||
Cost of revenues | 76,026 | 42,919 | 272,198 | 321,672 | |||
Gross profit | 90,223 | 43,926 | 312,188 | 460,586 | |||
Operating expenses: | |||||||
Research and development | 82,438 | 83,404 | 332,225 | 337,744 | |||
Selling, general and administrative | 36,412 | 33,633 | 145,453 | 146,996 | |||
Operating expenses | 118,850 | 117,037 | 477,678 | 484,740 | |||
Operating loss | (28,627) | (73,111) | (165,490) | (24,154) | |||
Other income (expense): | |||||||
Interest income and other, net | 2,978 | 3,610 | 11,987 | 19,165 | |||
Interest expense | (260) | (942) | (1,310) | (5,554) | |||
Loss before income taxes | (25,909) | (70,443) | (154,813) | (10,543) | |||
Provision (benefit) for income taxes | (2,086) | (15,536) | 36,197 | 7,943 | |||
Equity-method loss | — | (14,880) | — | (16,030) | |||
Net loss | $ (23,823) | $ (69,787) | $ (191,010) | $ (34,516) | |||
Loss per share: | |||||||
Basic | $ (0.73) | $ (2.19) | $ (5.93) | $ (1.09) | |||
Diluted | $ (0.73) | $ (2.19) | $ (5.93) | $ (1.09) | |||
Weighted-average common shares outstanding: | |||||||
Basic | 32,420 | 31,848 | 32,191 | 31,804 | |||
Diluted | 32,420 | 31,848 | 32,191 | 31,804 | |||
Non-GAAP Financial Measurements
In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.
The non-GAAP financial measurements do not replace the presentation of Silicon Labs' GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs' financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
(In thousands, except per share data) | ||||||||||||
Three Months Ended | ||||||||||||
Non-GAAP Income Statement Items | GAAP Measure | GAAP Percent of Revenue | Stock Compensation Expense | Intangible Asset Amortization | Non-GAAP Measure | Non-GAAP Percent of Revenue | ||||||
Revenues | $ 166,249 | |||||||||||
Gross profit | 90,223 | 54.3 % | $ 485 | $ — | $ 90,708 | 54.6 % | ||||||
Research and development | 82,438 | 49.6 % | 10,199 | 5,437 | 66,802 | 40.2 % | ||||||
Selling, general and administrative | 36,412 | 21.9 % | 5,460 | — | 30,952 | 18.6 % | ||||||
Operating expenses | 118,850 | 71.5 % | 15,659 | 5,437 | 97,754 | 58.8 % | ||||||
Operating income (loss) | (28,627) | (17.2 %) | 16,144 | 5,437 | (7,046) | (4.2 %) | ||||||
Three Months Ended | ||||||||||||
Non-GAAP Loss Per Share | GAAP Measure | Stock Compensation Expense* | Intangible Asset Amortization* | Income Tax Adjustments | Non- GAAP Measure | |||||||
Net income (loss) | $ (23,823) | $ 16,144 | $ 5,437 | $ (1,221) | $ (3,463) | |||||||
Diluted shares outstanding | 32,420 | 32,420 | ||||||||||
Diluted loss per share | $ (0.73) | $ (0.11) | ||||||||||
* Represents pre-tax amounts |
Unaudited Forward-Looking Statements Regarding Business Outlook | ||||||
(In millions, except per share data) | ||||||
Three Months Ended | ||||||
Business Outlook | GAAP Measure | Non-GAAP Adjustments** | Non-GAAP Measure | |||
Gross margin | 54% to 56% | — % | 54% to 56% | |||
Operating expenses | ||||||
Diluted earnings (loss) per share | ||||||
** Non-GAAP adjustments include the following estimates: stock compensation expense of |
Silicon Laboratories Inc. | |||
Condensed Consolidated Balance Sheets | |||
(In thousands, except per share data) | |||
(Unaudited) | |||
|
| ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 281,607 | $ 227,504 | |
Short-term investments | 100,554 | 211,720 | |
Accounts receivable, net | 54,479 | 29,295 | |
Inventories | 105,639 | 194,295 | |
Prepaid expenses and other current assets | 59,754 | 75,117 | |
Total current assets | 602,033 | 737,931 | |
Property and equipment, net | 132,136 | 145,890 | |
Goodwill | 376,389 | 376,389 | |
Other intangible assets, net | 36,499 | 59,533 | |
Other assets, net | 75,617 | 123,313 | |
Total assets | $ 1,222,674 | $ 1,443,056 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 42,448 | $ 57,498 | |
Revolving line of credit | — | 45,000 | |
Deferred revenue and returns liability | 3,073 | 2,117 | |
Other current liabilities | 52,362 | 58,955 | |
Total current liabilities | 97,883 | 163,570 | |
Other non-current liabilities | 44,770 | 70,804 | |
Total liabilities | 142,653 | 234,374 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock – | — | — | |
Common stock – | 3 | 3 | |
Additional paid-in capital | 78,227 | 16,973 | |
Retained earnings | 1,001,721 | 1,192,731 | |
Accumulated other comprehensive income (loss) | 70 | (1,025) | |
Total stockholders' equity | 1,080,021 | 1,208,682 | |
Total liabilities and stockholders' equity | $ 1,222,674 | $ 1,443,056 | |
Silicon Laboratories Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
Year Ended | |||
|
| ||
Operating Activities | |||
Net loss | $ (191,010) | $ (34,516) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation of property and equipment | 25,551 | 25,707 | |
Amortization of other intangible assets | 23,034 | 25,374 | |
Amortization of debt discount and debt issuance costs | — | 960 | |
Stock-based compensation expense | 61,503 | 48,208 | |
Equity-method loss | — | 16,030 | |
Deferred income taxes | 29,470 | (11,815) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (25,184) | 42,142 | |
Inventories | 88,494 | (93,398) | |
Prepaid expenses and other assets | 27,362 | (10,733) | |
Accounts payable | (15,155) | (25,644) | |
Other current liabilities and income taxes | (21,768) | (37,793) | |
Deferred revenue and returns liability | 956 | (4,663) | |
Other non-current liabilities | (17,163) | 29,793 | |
Net cash used in operating activities | (13,910) | (30,348) | |
Investing Activities | |||
Purchases of marketable securities | (73,602) | (103,485) | |
Sales of marketable securities | 54,227 | 395,565 | |
Maturities of marketable securities | 131,858 | 200,530 | |
Purchases of property and equipment | (11,748) | (22,282) | |
Proceeds from sale of equity investment | 12,382 | — | |
Purchases of other assets | — | (520) | |
Net cash provided by investing activities | 113,117 | 469,808 | |
Financing Activities | |||
Proceeds from issuance of debt | — | 80,000 | |
Payments on debt | (45,000) | (571,157) | |
Repurchases of common stock | (16) | (217,137) | |
Payment of taxes withheld for vested stock awards | (16,434) | (18,189) | |
Proceeds from the issuance of common stock | 16,346 | 14,612 | |
Net cash used in financing activities | (45,104) | (711,871) | |
Increase (decrease) in cash and cash equivalents | 54,103 | (272,411) | |
Cash and cash equivalents at beginning of period | 227,504 | 499,915 | |
Cash and cash equivalents at end of period | $ 281,607 | $ 227,504 | |
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SOURCE Silicon Labs