Silicon Labs Announces Fourth Quarter and Full Year 2020 Results
AUSTIN, Texas, Feb. 3, 2021 /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 January 2, 2021. Revenue exceeded the top end of the guidance range at $242.9 million, up from $221.3 million in the third quarter. Revenue for the full year was $886.7 million, up from $837.6 million in 2019. Fourth quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.20 and $0.84, respectively. Full year GAAP and non-GAAP diluted EPS were $0.28 and $3.01, respectively.
"Fourth quarter revenue set a record at $242.9 million resulting in 10% sequential growth and full year revenue grew 6% over 2019," said Tyson Tuttle, CEO of Silicon Labs. "Our IoT products led the way with a second consecutive quarter of record revenue. We exited the year with momentum, and we are looking forward to an even stronger 2021."
Fourth Quarter Financial Highlights
-- IoT revenue increased to $147.4 million, up 11% sequentially and 15% year-on-year. -- Infrastructure and Automotive revenue increased to $95.5 million, up 8% sequentially and 4% year-on-year.
On a GAAP basis:
-- GAAP gross margin was 58.4%. -- GAAP R&D expenses were $74 million. -- GAAP SG&A expenses were $50 million. -- GAAP operating income as a percentage of revenue was 7.3%. -- GAAP diluted earnings per share was $0.20.
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 58.6%. -- Non-GAAP R&D expenses were $58 million. -- Non-GAAP SG&A expenses were $39 million. -- Non-GAAP operating income as a percentage of revenue was 18.7%. -- Non-GAAP diluted earnings per share were $0.84.
Product Results
-- Announced Z-Wave Long Range (LR) support for existing Z-Wave 700 Series products. Z-Wave LR is a new specification by the Z-Wave Alliance, offering point-to-point wireless connectivity up to several miles away with scalability to support thousands of nodes from a single smart home network. Z-Wave LR eliminates the need for mesh repeaters, saving time and money for developers and end customers. -- Announced a portfolio expansion of pre-certified wireless modules specifically designed to address modern needs of IoT application development. The portfolio consists of the only modules in the industry with full stack support for multiprotocol solutions to enable commercial and consumer IoT applications, with flexible package options and highly integrated device security. Silicon Labs' new modules include xGM210PB, BGM220, MGM220, and BGX220 Xpress. The xGM210PB includes Secure Vault technology and PSA level 2 certification.
Business Highlights
-- Announced a collaboration with Orvibo, a leading provider of artificial intelligence-driven smart home products, systems, and solutions, to develop a new line of smart home devices using Silicon Labs' Wireless Gecko Series 2 SoCs. Orvibo's latest MixPad smart panels leverage Silicon Labs' SoCs to reliably connect smart home control panels and switches to many applications including automated lighting, curtain, HVAC systems, and wireless home security devices. -- Extended ClockBuilder Pro to support configuration and control of our IEEE 1588 modules, helping customers accelerate time to market and simplify design. Our IEEE 1588 modules are used in communications, smart grid, financial trading systems and industrial applications that need a consistent, reliable time reference between devices operating over Ethernet networks. -- Announced a new high reliability isolation partnership with Teledyne Technologies, a leading provider of high-performance, high-reliability semiconductors for the aerospace and defense markets. Under the new agreement, Teledyne will market custom high reliability solutions based on Silicon Labs' Si827x isolated gate driver family. These solutions are optimized for space, aerospace, military, energy and other markets requiring advanced technology and high reliability. -- Awarded Gold in 2020 LEAP Awards for Secure Vault. Silicon Labs products with Secure Vault were the first SoC and module with a radio to earn PSA Level 2 security certification.
Business Outlook
The company expects first quarter revenue to be in the range of $237 to $247 million, with both IoT and Infrastructure & Automotive approximately flat to fourth quarter, and estimates the following:
On a GAAP basis:
-- GAAP gross margin at approximately 58.1%. -- GAAP operating expenses at approximately $126 million. -- GAAP effective tax rate of 0.0%. -- GAAP diluted earnings per share between $0.05 and $0.15.
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, acquisition related charges, 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 at approximately 58.2%. -- Non-GAAP operating expenses at approximately $100 million. -- Non-GAAP effective tax rate at 13.0%. -- Non-GAAP diluted earnings per share between $0.70 and $0.80.
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 (877) 344-7529 (US) or (412) 317-0088 (International) and entering access code 10145993. The replay will be available through March 3, 2021.
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. 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 impact of COVID-19 on the U.S. and global economy, including the restrictions on travel and transportation and other actions taken by governmental authorities and disruptions to the business of our customers or our global supply chain that have occurred or may occur in the future, the ongoing impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs; 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 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; 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; 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 Silicon Labs' products and its networks 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 Income (In thousands, except per share data) (Unaudited) Three Months Ended Year Ended --- January 2, December 28, January 2, December 28, 2021 2019 2021 2019 --- Revenues $242,917 $219,438 $886,677 $837,554 Cost of revenues 100,942 86,167 359,151 327,270 Gross profit 141,975 133,271 527,526 510,284 Operating expenses: Research and development 73,857 69,176 287,887 257,150 Selling, general and administrative 50,456 50,866 201,339 196,437 Operating expenses 124,313 120,042 489,226 453,587 Operating income 17,662 13,229 38,300 56,697 Other income (expense): Interest income and other, net 2,581 3,494 11,143 13,185 Interest expense (8,219) (5,105) (34,142) (20,233) Income before income taxes 12,024 11,618 15,301 49,649 Provision for income taxes 3,076 1,903 2,770 30,384 $8,948 $9,715 $12,531 $19,265 Net income === Earnings per share: Basic $0.20 $0.22 $0.29 $0.44 Diluted $0.20 $0.22 $0.28 $0.43 Weighted-average common shares outstanding: Basic 43,895 43,450 43,775 43,346 Diluted 44,729 44,801 44,372 44,290
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) Non-GAAP Income Three Months Ended Statement Items January 2, 2021 GAAP GAAP Stock Intangible Non-GAAP Non-GAAP Asset Measure Percent of Compensation Amortization Measure Percent of Revenue Expense Revenue Revenues $242,917 Gross profit 141,975 58.4% $375 $ -- $142,350 58.6% Research and 73,857 30.4% 7,386 8,654 57,817 23.8% development Selling, general and 50,456 8,000 3,338 39,118 administrative 20.7% 16.1% Operating income 17,662 7.3% 15,761 11,992 45,415 18.7%
Non-GAAP Three Months Ended Earnings Per Share January 2, 2021 GAAP Stock Intangible Investment Interest Income Non- Asset Fair Value Expense GAAP Measure Compensation Amortization* Adjustments* Tax Measure Expense* Adjustments* Adjustments Net income $8,948 $15,761 $11,992 $(1,438) $6,039 $(3,685) $37,617 Diluted shares 44,729 outstanding 44,729 Diluted earnings $0.20 per share $0.84 * Represents pre-tax amounts
Non-GAAP Year Ended Earnings Per Share January 2, 2021 GAAP Stock Intangible Acquisition Investment Interest Income Non- Asset Related Fair Value Expense GAAP Measure Compensation Amortization* Items* Restructuring Adjustments* Tax Measure Expense* Charges* Adjustments* Adjustments Net income $12,531 $60,091 $44,733 $6,061 $4,269 $(1,438) $24,350 $(17,074) $133,523 Diluted shares 44,372 outstanding 44,372 Diluted earnings $0.28 per share $3.01 * Represents pre-tax amounts
Unaudited Forward-Looking Statements Regarding Business Outlook (In millions, except per share data) Business Outlook Three Months Ending April 3, 2021 GAAP Non-GAAP Non-GAAP Measure Adjustments* Measure Gross margin 58.1% 0.1% 58.2% Operating expenses $126 $26 $100 Effective tax rate 0.0% 13.0% 13.0% Diluted earnings per share - low $0.05 $0.65 $0.70 Diluted earnings per share - high $0.15 $0.65 $0.80 * Non-GAAP adjustments include the following estimates: stock compensation expense of $13.9 million, intangible asset amortization of $11.7 million, interest expense adjustments of $9.4 million, and the associated tax impact from the aforementioned items.
Silicon Laboratories Inc. Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) January 2, December 28, 2021 2019 --- Assets Current assets: Cash and cash equivalents $202,720 $227,146 Short-term investments 521,963 498,825 Accounts receivable, net 95,169 75,639 Inventories 66,662 73,057 Prepaid expenses and other current assets 89,307 69,192 Total current assets 975,821 943,859 Property and equipment, net 139,439 135,939 Goodwill 631,932 398,402 Other intangible assets, net 166,084 134,279 Other assets, net 80,211 62,374 Total assets $1,993,487 $1,674,853 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $54,949 $38,899 Current portion of convertible debt, net 134,480 -- Deferred revenue and returns liability 12,986 19,251 Other current liabilities 82,083 79,551 Total current liabilities 284,498 137,701 Convertible debt, net 428,945 368,257 Other non-current liabilities 80,203 53,844 Total liabilities 793,646 559,802 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; 4 4 43,925 and 43,496 shares issued and outstanding at January 2, 2021 and December 28, 2019, respectively Additional paid-in capital 204,359 133,793 Retained earnings 993,664 980,608 Accumulated other comprehensive income 1,814 646 Total stockholders' equity 1,199,841 1,115,051 Total liabilities and stockholders' equity $1,993,487 $1,674,853
Silicon Laboratories Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Year Ended January 2, December 28, 2021 2019 --- Operating Activities Net income $12,531 $19,265 Adjustments to reconcile net income to cash provided by operating activities: Depreciation of property and equipment 17,780 16,883 Amortization of other intangible assets and other assets 44,733 39,584 Amortization of debt discount and debt issuance costs 21,433 13,485 Loss on extinguishment of convertible debt 4,060 -- Stock-based compensation expense 60,091 54,799 Deferred income taxes (6,533) 23,048 Changes in operating assets and liabilities: Accounts receivable (17,612) (2,401) Inventories 10,748 2,171 Prepaid expenses and other assets (51,839) 8,965 Accounts payable 15,263 7,830 Other current liabilities and income taxes 3,257 (6,826) Deferred revenue and returns liability (6,694) (3,243) Other non-current liabilities 28,500 (7,038) Net cash provided by operating activities 135,718 166,522 Investing Activities Purchases of available-for-sale investments (519,567) (424,524) Sales and maturities of available-for-sale investments 497,357 344,937 Purchases of property and equipment (20,422) (16,279) Purchases of other assets (1,570) (8,396) Acquisitions of businesses, net of cash acquired (316,809) (2,510) Net cash used in investing activities (361,011) (106,772) Financing Activities Proceeds from issuance of debt 845,000 -- Payments on debt (624,737) (1,132) Repurchases of common stock (16,287) (26,716) Payment of taxes withheld for vested stock awards (18,124) (16,295) Proceeds from the issuance of common stock 15,015 14,496 Net cash provided by (used in) financing activities 200,867 (29,647) Increase (decrease) in cash and cash equivalents (24,426) 30,103 Cash and cash equivalents at beginning of period 227,146 197,043 Cash and cash equivalents at end of period $202,720 $227,146
View original content to download multimedia:http://www.prnewswire.com/news-releases/silicon-labs-announces-fourth-quarter-and-full-year-2020-results-301220954.html
SOURCE Silicon Labs