(NASDAQ: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported financial results for its first quarter ended March 29, 2014. Revenue in the first quarter was at the top end of guidance at $145.7 million, compared with $146.2 million reported in the fourth quarter. Additionally, the company reported excellent performance on its balance sheet with strong cash flows and effective working capital management.
Q1 Financial Highlights
On a GAAP basis:
- Gross margin was 59.8 percent
- R&D expenses were $42.5 million
- SG&A expenses were $34.6 million
- Operating income as a percentage of revenue was 6.9 percent
- Diluted earnings per share were $0.18
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 60.2 percent
- R&D expenses were $35.0 million
- SG&A expenses were $28.5 million
- Operating income was 16.6 percent
- Diluted earnings per share were $0.42
- Broad-based revenue was $72.3 million, essentially flat sequentially, as expected.
- Broadcast exceeded expectations with revenue of $50.7 million, including record revenue in video.
- Access revenue decreased slightly, as expected, to $22.7 million.
- Introduced a new version of the Simplicity Studio™ development ecosystem supporting Silicon Labs’ MCU products in a single, unified platform, making the embedded design process easier, faster and more efficient.
- Announced the expansion of Silicon Labs’ Ember® ZigBee® portfolio with the introduction of a new ARM®-based system-on-a-chip family that reduces the cost and complexity of deploying ZigBee solutions in smart metering and home automation applications.
- Launched the industry’s first single-chip digital ultraviolet (UV) index sensor ICs designed to track UV sun exposure, heart rate and blood oxygen levels for wearable products such as smart watches and health and fitness trackers.
- Acquired the full product portfolio and intellectual property of Silicon Valley-based Touchstone Semiconductor, an early-stage technology company and provider of low-power analog IC products targeting Internet of Things applications.
The company expects revenue in the second quarter to be in the range of $147 million to $151 million. Second quarter diluted earnings per share are expected to be between $0.15 and $0.19 on a GAAP basis and between $0.43 and $0.47 on a non-GAAP basis. Both GAAP and non-GAAP estimates include an estimated $0.03 per share effect from litigation costs.