Silicon Laboratories Lifts 2Q Outlook

AUSTIN, Texas (AP) — Chip maker Silicon Laboratories Inc. raised its financial outlook for the second quarter Wednesday, adding to other tentative signs of stabilizing demand for the semiconductor industry.

The Austin, Texas, company now expects to report sales of $101 million to $105 million for the quarter ending this month, up from a previous estimate of $92 million to $97 million. Analysts polled by Thomson Reuters were looking for sales of $95.5 million.

Silicon Laboratories said a faster-than-expected rebound in some of its business units and new-product launches have strengthened sales. In a statement, the company said "visibility has improved considerably," with bookings and shipments looking "more consistent with healthy historical norms."

It raised its earnings forecast to between 13 cents and 16 cents per share from 7 cents to 11 cents. Stripping out one-time items, the company projects a profit of 34 cents to 37 cents per share. Analysts were expecting 30 cents.

The company's shares climbed 68 cents to $38.60 in premarket trading Wednesday.

Several chip companies have made similar revisions to their financial outlook, reporting greater stability in sales after demand plummeted toward the end of last year. Last week, San Diego-based chip maker Qualcomm Inc. raised its sales and operating income projections for its fiscal third quarter, and Stec Inc., based in Santa Ana, Calif., raised its estimates Tuesday, sending shares up 30 percent.