Silicon Labs Announces Record Revenue for Q3 2016
Silicon Labs reported financial results for its third quarter ended October 1, 2016. Revenue in the third quarter established a new record, exceeding the high end of guidance at $178.1 million, up from $174.9 million in the second quarter. Third quarter GAAP and non-GAAP earnings per share (EPS) exceeded the high end of guidance at $0.47 and $0.77, respectively.
Third quarter financial highlights include: IoT revenue established a new record, increasing to $81.5 million, or 6.2% sequentially. Infrastructure revenue established a new record, increasing to $38.3 million, or 7.5% sequentially, exclusive of $5 million of patent sale revenue in the second quarter. Broadcast increased to $40.7 million, or 7.1% sequentially. Access revenue declined to $17.5 million, or 10.0% sequentially.
On a GAAP basis: GAAP gross margin was 60.8%. GAAP R&D expenses were $48.4 million. GAAP SG&A expenses were $38.0 million. GAAP operating income as a percentage of revenue was 12.2%. GAAP diluted earnings per share were $0.47.
The company expects revenue in the fourth quarter to be in the range of $176 million to $181 million. Fourth quarter diluted earnings per share are expected to be between $0.30 and $0.36 on a GAAP basis, and between $0.62 and $0.68 on a non-GAAP basis.
â€œWe are delighted to report record revenue, including five percent sequential and 14 percent year-on-year growth in product revenue," said Tyson Tuttle, CEO of Silicon Labs. â€œWe are executing on our growth strategy targeting the IoT and Infrastructure markets, and are seeing our efforts translate into strong financial results.â€