Silicon Laboratories Reports Strong 2nd Quarter Results

July 24, 2006 by Jeff Shepard

Silicon Laboratories Inc. reported second quarter revenues of $123.5 million, an 8% sequential increase and a 15% increase over the same period in 2005. The company also announced that based on confidence in the future potential of the business, Silicon Laboratories' Board of Directors authorized a share repurchase program having an aggregate value of up to $100 million over a period of twelve months. The repurchase program allows for repurchases to be made in open market or privately negotiated transactions subject to market conditions, applicable legal requirements and other factors.

The company reported that the diversity of its product portfolio is driving growth opportunities across a wide variety of markets and customers. Both the broad-based mixed-signal and mobile handset business grew sequentially in the second quarter driven by strong market demand and market share gains. The broad-based mixed-signal business experienced growth across all major product lines including modems, ProSLIC® voice over IP solutions, mixed-signal microcontrollers (MCUs) and timing solutions.

GAAP operating income for the second quarter was $11.3 million. Non-GAAP operating income for the second quarter was $23.8 million or 19.3% of revenue. GAAP net income for the second quarter was $10.1 million or 18 cents per fully diluted share. Non-GAAP net income per fully diluted share, excluding pro-forma charges, was 37 cents. The reconciling charges are set forth in the reconciliation of GAAP to non-GAAP financial measures table included below. The company's cash and short-term investments totaled approximately $407 million at quarter end.