Silicon Laboratories Adds Industry Veteran to Executive Team, Announces Financial Results
Silicon Laboratories Inc. announced the addition of Mark Downing to the executive team in the newly established role of Vice President of Strategy and Business Development. Downing, a twenty year industry veteran, will support the evolution of the company’s long-term strategy. In addition to his focus on strategic direction, Downing will be responsible for identifying new product vectors and will assume responsibility for guiding the company’s mergers and acquisition activity.
Downing brings a wealth of strategic marketing experience and business development to the role. He most recently served as CEO and Director of Enpirion. Prior to joining Enpirion, he served as VP of Marketing for Micrel and was responsible for defining strategic direction. Downing also served as VP of Marketing at Pericom Semiconductor where he was responsible for each of Pericom’s four product lines and launching the company in preparation for an initial public offering and subsequent secondary public offering. From 1988 until 1997 he served in various strategic planning, marketing, product line management and applications management roles at National Semiconductor Corp.
Silicon Laboratories also reported its financial results, including a record revenue in continuing operations of $75.6 million and earnings per share results that exceeded the company’s guidance. The company also announced a significant increase in the share repurchase program. The company’s Board of Directors approved a new $400 million share repurchase plan, quadrupling the previous authorization. The program will be executed on the open market or in private transactions, including structured or accelerated transactions, depending on market conditions.
Revenue increased by 2% year over year to record levels in the second quarter. GAAP gross margin totaled 60%. GAAP operating income was $1.9 million. GAAP diluted earnings per share from continuing operations of $0.12 represented more than a 100% improvement over the same period last year. Excluding an $8.6 million charge for stock compensation expense, non-GAAP operating income was $10.6 million or 14% of revenue, representing significant progress towards the company’s target model. Non-GAAP diluted earnings per share from continuing operations totaled $0.26, an increase of 60% sequentially. The reconciling charges are set forth in the financial measures table included below. The company ended the quarter with approximately $644 million in cash, cash equivalents and short-term investments.
