Silicon Laboratories Reports Modest First Quarter Growth

April 24, 2006 by Jeff Shepard

Silicon Laboratories Inc. reported four percent sequential growth to $114.5 million for the first quarter of 2006. GAAP operating income for the first quarter was $11.0 million. GAAP net income for the first quarter was $11.1 million, or 19 cents per fully diluted share. For the second quarter of 2006, the company anticipates revenue of $116 to $120 million. No mention was made of the company's digital power products.

Both the broad-based mixed-signal and mobile handset businesses grew sequentially in the first quarter. The broad-based mixed-signal business grew five percent sequentially due in part to solid demand for the ProSLIC(R) subscriber line interface products and mixed-signal microcontrollers (MCUs). ProSLIC revenue increased by 60 percent compared to the first quarter of 2005, benefiting from strength in the VoIP market. The mixed-signal MCU business revenue increased sequentially, and the portfolio expanded to include new, major product families in USB and Embedded Ethernet.

The ramp of the company's FM tuner and continued strong demand in the GSM/GPRS market were responsible for mobile handset revenue growth. The company shipped a record number of RF transceivers and continued to add FM tuner design wins and customers. The company also reported progress on design activity for the Aero(R) IIe EDGE transceiver, the SiRX(R) satellite set-top box receiver and the oscillator products.

"We are pleased with the healthy demand for our products and the progress we have made preparing our recently launched products for mass production," said Necip Sayiner, president and CEO of Silicon Laboratories. "We are focused on product execution and on winning new market and customer opportunities to establish a solid foundation for continued growth."