Silicon Laboratories Announces Third Quarter Financial Results

Silicon Laboratories Inc. reported third quarter revenues of $115.5 million, an 11% increase over the same period in 2005. The company reported that its diversifying product portfolio had multiple growth areas that performed well in the third quarter including microcontrollers, timing products and broadcast products. The broad-based mixed-signal business was up slightly in the third quarter despite weakness in the company's DAA business. New product introductions, including FM transmitters and automotive MCUs, further expanded the portfolio and are expected to be important growth areas in the future.

"We're at the beginning of several strong potential product cycles in both our mobile handset and broad-based mixed-signal businesses," said Necip Sayiner, president and CEO of Silicon Laboratories. "So while the near-term outlook remains relatively muted, we feel very good about the long-term growth potential and health of the business."

Gross margin for the third quarter was within the company's target range at 55%. GAAP operating income was $4.2 million. Non-GAAP operating income was $17.4 million or 15% of revenue. GAAP net income for the third quarter was $4.7 million, or $0.08 per fully diluted share. Non-GAAP net income per fully diluted share, excluding certain charges, was $0.26.