Silicon Labs today reported financial results for its second quarter ended July 1, 2017. Revenue in the second quarter exceeded the high end of guidance at $190 million, up from $179 million in the first quarter. Second quarter GAAP and non-GAAP earnings per share (EPS) were $0.38 and $0.79, respectively.
"Our second quarter 2017 financial results reflect outstanding year-on-year progress, with 12 percent growth in product revenue," said Tyson Tuttle, CEO of Silicon Labs. "Five years ago, we accelerated our focus on the Internet of Things through a combination of organic investment and strategic acquisitions.
“This quarter, IoT surpassed 50 percent of total revenue, driving target model performance in year-on-year product revenue growth, gross margin and operating income. Our strategy is coming together as we focus on core strategic growth drivers and capture share in target markets," continued Tuttle.
Second Quarter Financial Highlights
- IoT revenue established a new record, increasing to $98 million, up 11% sequentially and 27% year-on-year.
- Infrastructure revenue increased to $38 million, up 6% sequentially and up 7% year-on-year, exclusive of $5 million of patent sale revenue in the second quarter of 2016.
- Broadcast revenue declined to $37 million, down 2% sequentially and 4% year-on-year.
- Access revenue declined to $17 million, down 2% sequentially and 10% year-on-year.
On a GAAP basis:
- GAAP gross margin was 59.5%.
- GAAP R&D expenses were $52 million.
- GAAP SG&A expenses were $40 million.
- GAAP operating income as a percentage of revenue was 11.0%.
- GAAP diluted earnings per share were $0.38.
Product Highlights
- Launched the new EFM32GG11 Giant Gecko microcontroller, offering the most advanced capabilities and largest memory footprint in the low-power MCU market.
- Introduced a comprehensive suite of software and hardware that supports the new Bluetooth® mesh specification, addressing smart home, lighting, beacons and asset tracking applications.
- Launched the CP2615 USB-to-I2S bridge chip, providing a simple, turnkey solution for transferring digital audio data.
- Introduced the Si54x Ultra Series™ family of high-performance crystal oscillators, offering the industry's lowest jitter frequency-flexible solution and shortest lead times for a wide range of networking and communications applications.
Business Highlights
- Delivered the keynote at the Design Automation Conference in Austin, Texas, on the topic of "Accelerating the IoT."
- Won Somfy's Supplier Innovation Award for providing groundbreaking Wireless Gecko silicon and software, enabling flexible control and integration of Somfy's motorized window coverings into connected living and building experiences.
The company expects revenue in the third quarter to be in the range of $193 million to $199 million, and also estimates the following:
- GAAP gross margin at approximately 58.5%.
- GAAP operating expenses between $92.5 and $93 million.
- GAAP effective tax rate at 11.0%.
- GAAP diluted earnings per share between $0.35 and $0.41.
