Silicon Laboratories Announces Fourth Quarter Results

February 04, 2007 by Jeff Shepard

Silicon Laboratories announced its fourth quarter financial results. Gross margin for the fourth quarter was 53.4%, which was above the company’s previously stated guidance range of 52 to 53%. GAAP operating income was $2.6 million. Non-GAAP operating income was $12.7 million, or 11.4% of revenue.

GAAP net income for the fourth quarter was $5.2 million, or $0.09 per fully diluted share. Non-GAAP net income, excluding certain charges, was $13.5 million, or $0.24 per fully diluted share. The reconciling charges are set forth in the reconciliation of GAAP to non-GAAP financial measures table included below. The company’s balance sheet of cash, cash equivalents and short-term investments totaled approximately $386 million at December 30, 2006. During the quarter, the company repurchased shares of its common stock under its repurchase program at a cost of approximately $15 million.

"We achieved year-over-year revenue growth while managing through multiple product transitions in our mobile handset business and experiencing an overall industry slowdown in the second half of the year," said Necip Sayiner, President and CEO of Silicon Laboratories. "We continue to create a diverse set of growth drivers within our business and execute on our new product introductions in our effort to drive double digit growth in 2007."

During the fourth quarter, the company reported strong demand for its Broadcast products, in particular FM tuners and satellite receivers. The broad-based mixed-signal business experienced a slight decline on a sequential basis due to lower modem shipments. The mobile handset business performed within the company’s guidance for the fourth quarter. Silicon Laboratories experienced a decline in the total GSM/GPRS transceiver shipments, which was largely offset by the increase in EDGE transceiver shipments, initial AeroFONE™ revenue and FM tuner growth.