Record IoT Revenue Drives Third Quarter Results at Silicon Labs

October 23, 2019 by Paul Shepard

Silicon Labs has reported financial results for its third quarter ended September 28, 2019. Revenue was at the high end of guidance at $223.3 million, up from $206.7 million in the second quarter. Third quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.45 and $0.96, respectively.

"Third quarter revenue was up eight percent sequentially, with growth across all major product categories, and following the ten percent sequential increase we realized in the second quarter," said Tyson Tuttle, CEO of Silicon Labs. "Despite macro headwinds, ongoing trade policy uncertainties and current semiconductor industry market conditions, we are pleased to deliver two consecutive quarters of strong revenue growth and a return to target operating model profitability."

Third Quarter Financial Highlights

  • IoT revenue increased to a record $129 million, up 4% sequentially and 3% year-on-year.
  • Infrastructure revenue increased to $45 million, up 3% sequentially and down 14% year-on-year.
  • Broadcast revenue increased to $34 million, up 30% sequentially and down 5% year-on-year.
  • Access revenue increased to $15 million, up 23% sequentially and down 10% year-on-year.
  • GAAP gross margin was 60.1%.
  • GAAP R&D expenses were $63 million.
  • GAAP SG&A expenses were $48 million.
  • GAAP operating income as a percentage of revenue was 10.7%.
  • GAAP diluted earnings per share were $0.45.

Business Outlook

The company expects fourth quarter revenue to be in the range of $217 to $227 million, with Infrastructure up, IoT flat, and a decline in Broadcast and Access, and estimates the following:

  • GAAP gross margin at approximately 60.3%.
  • GAAP operating expenses at approximately $113 million.
  • GAAP effective tax rate of 8.0%.
  • GAAP diluted earnings per share between $0.33 and $0.43.