Silicon Laboratories 3Q Profit Leaps

AUSTIN, Texas (AP) — Silicon Laboratories Inc.'s third-quarter profit leaped as the chip designer reported an 11 percent increase in revenue and lower expenses. Stronger demand for consumer electronics helped lift the results.

The company's CEO, Necip Sayiner, said there is "far more potential for growth" this year and next because of product launches and big customer wins. Silicon Laboratories makes chips for things like set-top boxes and cell phones.

Net income in the three months ended Oct. 3 was $22.4 million, or 47 cents per share, versus $1.2 million, or 2 cents per share, in the year-ago period. Last year's numbers were weighed down in part by $10.2 million in in-process research and development expenses that weren't present in the latest quarter.

Excluding one-time items, the company earned 67 cents per share, which topped analysts' expectation for 60 cents per share.

Revenue rose to $125.9 million, ahead of analysts' forecasts for $124 million and last year's revenue of $113.5 million.

The company predicted fourth-quarter revenue of $124 million to $129 million. Analysts were expecting $126 million.

Shares rose 17 cents to $41.55 in afternoon trading.