EX-99 2 a15-3444_1ex99.htm EX-99

Exhibit 99

 

 

SILICON LABS ANNOUNCES RECORD REVENUE

 

Company Acquires Bluegiga and Expands Internet of Things SAM —

 

AUSTIN, Texas — Feb. 4, 2015 — Silicon Labs (NASDAQ: SLAB), a leading provider of microcontroller, wireless connectivity, analog and sensor solutions for the Internet of Things (IoT), today reported financial results for its fourth quarter ended January 3, 2015. Revenue in the fourth quarter exceeded the top end of guidance and established a new record at $162.0 million, up from $158.1 million in the third quarter.

 

This week, the company announced its acquisition of Bluegiga, a leading provider of Bluetooth and Wi-Fi wireless modules and software based in Finland. By joining forces, Silicon Labs and Bluegiga offer customers a “one-stop-shop” source of wireless connectivity solutions and one of the strongest wireless development teams for the IoT. The company expects the acquisition to be accretive to 2015 non-GAAP earnings.

 

Financial Highlights

 

On a GAAP basis:

 

·                  Gross margin was 59.7 percent

·                  R&D expenses were $46.1 million

·                  SG&A expenses were $39.5 million

·                  Operating income as a percentage of revenue was 6.8 percent

·                  Diluted earnings per share were $0.23

 

On a non-GAAP basis (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation tables below):

 

·                  Gross margin was 60.1 percent

·                  R&D expenses were $37.2 million

·                  SG&A expenses were $32.3 million

·                  Operating income as a percentage of revenue was 17.2 percent

·                  Diluted earnings per share were $0.57

 

Business Highlights

 

·                  Broad-based revenue delivered a third consecutive record quarter at $84.9 million, driven by record performance in Silicon Labs’ microcontroller, wireless and sensor products.

·                  Broadcast revenue exceeded expectations at $50.0 million.

·                  Access revenue also exceeded expectations at $27.1 million.

 



 

Product Highlights

 

·                  Introduced a new generation of EZRadio® and EZRadioPRO® radios, offering the highest levels of RF performance and single-chip integration in the sub-GHz wireless IC market while operating on a single coin-cell battery.

·                  Added the new Si705x family of digital temperature sensors, providing the industry’s most power-efficient temperature sensing option while maintaining accuracy across the entire operating voltage and temperature range.

·                  Introduced the Si2151/41 TV tuner family, our sixth-generation solution for the digital TV market offering the smallest footprint and bill-of-materials cost, the lowest power and the best RF performance.

·                  Launched our Si218x demodulator family supporting the latest satellite standards for global markets and terrestrial standards for Latin America and helping TV and set-top box manufacturers future-proof their designs and expand into new markets.

 

Business Outlook

 

The company expects revenue in the first quarter to be in the range of $156 million to $162 million and anticipates another record in its Broad-based products. First quarter diluted earnings per share are expected to be between $0.08 and $0.14 on a GAAP basis and between $0.42 and $0.48 on a non-GAAP basis. First quarter guidance reflects the acquisition of Bluegiga.

 

“We are pleased to have ended 2014 with record revenue for the quarter and our Broad-based products delivering a third consecutive record led by our MCU, wireless and sensor products,” said Tyson Tuttle, CEO of Silicon Labs. “The acquisition of Bluegiga rounds out Silicon Labs’ wireless portfolio, significantly expands our wireless connectivity solutions for the IoT and enables us to address a broader range of market opportunities and customer needs.”

 

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 under Investor Relations (www.silabs.com). 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 ID 39717391. The replay will be available through March 4, 2015.

 

About Silicon Labs

 

Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon, software and system solutions for the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. We solve the electronics industry’s toughest problems, providing customers with significant advantages in performance, energy savings, connectivity and design simplicity. Backed by our world-class engineering teams with strong software and mixed-signal design expertise, Silicon Labs empowers developers with the tools and technologies they need to advance quickly and easily from initial idea to final product. 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; risks related to the successful completion of the development and implementation of Bluegiga’s technology; risks associated with the development of modules and the Company’s limited operating history with modules; risks that the acquisition may not yield the expected benefits due to the failure to properly integrate the acquired business and employees; risks that our competitors that supply products incorporated in Bluegiga’s modules may disrupt such supply; risks that the acquired business’ products and processes under development may fail to achieve market acceptance; risks of disputes regarding the acquired business and intellectual property; 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; 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, the Silicon Laboratories logo 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

 

Year Ended

 

 

 

January 3,
2015

 

December 28,
2013

 

January 3,
2015

 

December 28,
2013

 

Revenues

 

$

161,951

 

$

146,236

 

$

620,704

 

$

580,087

 

Cost of revenues

 

65,279

 

57,638

 

242,153

 

227,183

 

Gross margin

 

96,672

 

88,598

 

378,551

 

352,904

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

46,139

 

42,168

 

172,985

 

157,799

 

Selling, general and administrative

 

39,527

 

32,276

 

154,145

 

130,795

 

Operating expenses

 

85,666

 

74,444

 

327,130

 

288,594

 

Operating income

 

11,006

 

14,154

 

51,421

 

64,310

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

274

 

237

 

1,007

 

853

 

Interest expense

 

(808

)

(807

)

(3,154

)

(3,293

)

Other income (expense), net

 

(337

)

118

 

(234

)

157

 

Income before income taxes

 

10,135

 

13,702

 

49,040

 

62,027

 

Provision for income taxes

 

111

 

3,060

 

11,019

 

12,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

10,024

 

$

10,642

 

$

38,021

 

$

49,819

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

$

0.25

 

$

0.88

 

$

1.17

 

Diluted

 

$

0.23

 

$

0.24

 

$

0.87

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

42,279

 

42,972

 

42,970

 

42,715

 

Diluted

 

43,137

 

43,847

 

43,793

 

43,537

 

 



 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

 

 

 

Three Months Ended
January 3, 2015

 

Non-GAAP Income
Statement Items

 

GAAP
Measure

 

GAAP
Percent of
Revenue

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Acquisition
Related
Items

 

Termination
Costs

 

Non-
GAAP
Measure

 

Non-GAAP
Percent of
Revenue

 

Revenues

 

$

161,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

96,672

 

59.7

%

$

200

 

$

390

 

$

 

$

37

 

$

97,299

 

60.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

46,139

 

28.5

%

5,240

 

3,589

 

 

85

 

37,225

 

23.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

39,527

 

24.4

%

5,454

 

729

 

1,047

 

3

 

32,294

 

19.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

11,006

 

6.8

%

10,894

 

4,708

 

1,047

 

125

 

27,780

 

17.2

%

 

 

 

Three Months Ended
January 3, 2015

 

Non-GAAP Diluted
Earnings Per Share

 

GAAP
Measure

 

Stock
Compensation
Expense

 

Intangible
Asset
Amortization

 

Acquisition
Related
Items

 

Termination
Costs

 

Non-
GAAP
Measure

 

Net income

 

$

10,024

 

$

9,927

 

$

3,335

 

$

1,047

 

$

125

 

$

24,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

43,137

 

 

 

 

 

43,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.23

 

 

 

 

 

 

 

 

 

$

0.57

 

 

Unaudited Forward-Looking Statements Regarding Business Outlook

 

 

 

Three Months Ending
April 4, 2015

 

Business Outlook

 

High

 

Low

 

Estimated GAAP diluted earnings per share

 

$

0.14

 

$

0.08

 

 

 

 

 

 

 

Estimated non-GAAP charges

 

0.34

 

0.34

 

 

 

 

 

 

 

Estimated non-GAAP diluted earnings per share

 

$

0.48

 

$

0.42

 

 



 

Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

 

 

January 3,
2015

 

December 28,
2013

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

141,706

 

$

95,800

 

Short-term investments

 

193,489

 

179,593

 

Accounts receivable, net of allowances for doubtful accounts of $786 at January 3, 2015 and $797 at December 28, 2013

 

70,367

 

72,124

 

Inventories

 

52,631

 

45,271

 

Deferred income taxes

 

21,173

 

18,878

 

Prepaid expenses and other current assets

 

49,171

 

47,651

 

Total current assets

 

528,537

 

459,317

 

Long-term investments

 

7,419

 

10,632

 

Property and equipment, net

 

132,820

 

132,445

 

Goodwill

 

228,781

 

228,781

 

Other intangible assets, net

 

115,021

 

131,593

 

Other assets, net

 

29,983

 

28,382

 

Total assets

 

$

1,042,561

 

$

991,150

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

38,922

 

$

22,126

 

Current portion of long-term debt

 

10,000

 

7,500

 

Accrued expenses

 

73,646

 

45,975

 

Deferred income on shipments to distributors

 

38,662

 

30,853

 

Income taxes

 

2,084

 

2,693

 

Total current liabilities

 

163,314

 

109,147

 

Long-term debt

 

77,500

 

87,500

 

Other non-current liabilities

 

43,691

 

55,941

 

Total liabilities

 

284,505

 

252,588

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock — $0.0001 par value; 10,000 shares authorized; no shares issued and outstanding

 

 

 

Common stock — $0.0001 par value; 250,000 shares authorized; 42,225 and 42,779 shares issued and outstanding at January 3, 2015 and December 28, 2013, respectively

 

4

 

4

 

Additional paid-in capital

 

29,501

 

48,630

 

Retained earnings

 

728,633

 

690,612

 

Accumulated other comprehensive loss

 

(82

)

(684

)

Total stockholders’ equity

 

758,056

 

738,562

 

Total liabilities and stockholders’ equity

 

$

1,042,561

 

$

991,150

 

 



 

Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Year Ended

 

 

 

January 3,
2015

 

December 28,
2013

 

Operating Activities

 

 

 

 

 

Net income

 

$

38,021

 

$

49,819

 

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

 

 

 

 

 

Depreciation of property and equipment

 

12,561

 

13,491

 

Amortization of other intangible assets and other assets

 

17,923

 

15,911

 

Stock-based compensation expense

 

39,067

 

30,800

 

Income tax benefit (shortfall) from stock-based awards

 

489

 

(606

)

Excess income tax benefit from stock-based awards

 

(632

)

(290

)

Deferred income taxes

 

3,054

 

3,319

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

1,757

 

8,972

 

Inventories

 

(7,170

)

5,588

 

Prepaid expenses and other assets

 

9,332

 

(2,514

)

Accounts payable

 

11,475

 

(3,979

)

Accrued expenses

 

27,671

 

463

 

Deferred income on shipments to distributors

 

7,809

 

(2,381

)

Income taxes

 

(3,371

)

5,189

 

Other non-current liabilities

 

(20,543

)

(3,632

)

Net cash provided by operating activities

 

137,443

 

120,150

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

Purchases of available-for-sale investments

 

(166,094

)

(213,883

)

Proceeds from sales and maturities of available-for-sale investments

 

156,520

 

210,824

 

Purchases of property and equipment

 

(11,225

)

(10,472

)

Purchases of other assets

 

(5,514

)

(5,939

)

Acquisitions of businesses, net of cash acquired

 

 

(86,441

)

Net cash used in investing activities

 

(26,313

)

(105,911

)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

Proceeds from issuance of common stock, net of shares withheld for taxes

 

13,320

 

15,301

 

Excess income tax benefit from stock-based awards

 

632

 

290

 

Repurchases of common stock

 

(71,676

)

(26,022

)

Payments on debt

 

(7,500

)

(13,434

)

Net cash used in financing activities

 

(65,224

)

(23,865

)

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

45,906

 

(9,626

)

Cash and cash equivalents at beginning of period

 

95,800

 

105,426

 

Cash and cash equivalents at end of period

 

$

141,706

 

$

95,800

 

 

###