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.
“We 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. “We are executing on our growth strategy targeting the IoT and Infrastructure markets, and are seeing our efforts translate into strong financial results.â€
