7/17 SLAB..Reports Second Quarter Earnings
AUSTIN, Texas, July 17 /PRNewswire/ -- Silicon Laboratories Inc. (Nasdaq: SLAB - news), the mixed-signal integrated circuit (IC) innovator for the communications industry, today reported its second quarter results for the period ended July 1, 2000.
Second quarter sales increased to $24.3 million, a record increase of 224 percent over the $7.5 million for the comparable quarter in 1999. The sales momentum of the Company reflects a broadening of customers in existing products with a contribution of revenue from new products. Net income before non-cash charges for amortization of deferred stock compensation grew to $5.0 million in the second quarter of 2000 from $1.2 million in the second quarter of 1999. Higher sales volume and gross margin relative to the level achieved in the second quarter of 1999 are attributable to this 317 percent increase. Diluted earnings per share of $0.10 before non-cash charges for amortization of deferred stock compensation grew 233 percent, from $0.03 per share at the end of the comparable quarter in 1999.
Research and development expense grew 175 percent for the quarter to $4.4 million from $1.6 million in the second quarter of 1999. R&D efforts are focused on broadening the Company's product portfolio in three principal areas: wireline, wireless and the recently announced optical networking products. At the end of the second quarter, the Company's headcount was 211, compared to 190 employees at the end of the first quarter of 2000.
Diluted earnings per share including the non-cash amortization of deferred stock compensation, increased to $0.08 per share, compared with $0.02 per share in the second quarter of 1999.
Silicon Laboratories announced significant business developments since the last earnings release. On June 22, 2000, Silicon Laboratories announced an agreement to acquire Krypton Isolation, a California-based semiconductor company. Silicon Labs and Krypton pioneered silicon DAA technology, and architectural differences between the companies' patented solutions make the products ideal for different applications. The acquisition is expected to close in the third quarter.
Additionally, Silicon Labs recently introduced the Optical Networking Division, marking the Company's entry into fiber optic communications. Silicon Labs also announced the first product in the new division's SiPHY(TM) family of products, the Si5020. This product is the world's smallest clock and data recovery IC, and is a key functional building block of optical networking products. The Optical Networking Division will focus on leveraging the Si5020's proprietary DSPLL(TM) technology into a full family of innovative optical networking solutions.
``The addition of our Optical Networking Division shows Silicon Labs' continued commitment to developing and patenting innovative solutions that broaden our product offering, which positions Silicon Labs as a leading supplier of communication ICs,'' said Nav Sooch, chairman and chief executive officer of Silicon Laboratories. ``During the quarter, Silicon Labs was awarded key design wins across all of its product lines, with a significant acceleration for the RF synthesizer, ISOmodem(TM) and ProSLIC(TM) products. The numerous design wins for our solutions with leading communications companies not only broadens our customer base and strengthens our market position, but also validates Silicon Labs' overall strategy.''
About Silicon Laboratories
Silicon Laboratories Inc. designs, manufactures and markets proprietary high-performance mixed-signal integrated circuits (ICs) for the wireless and wireline communications industries. Silicon Laboratories is an ISO9001- certified manufacturer and has applied for over 70 patents on its mixed-signal technology. The Company was incorporated in 1996 and is based in Austin, Texas. Additional information about Silicon Labs is available at www.silabs.com or through the toll-free investor relations line at 1-877-411-SLAB (7522).
Cautionary Language
This press release may contain forward-looking statements based on Silicon Laboratories' current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Silicon Laboratories believes that it is important to communicate the company's future expectations to investors. However, there may be events in the future that Silicon Laboratories is not able to accurately predict or control. For a discussion of these and other factors which could impact Silicon Labs' financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to Silicon Labs' recent filings with the SEC, particularly the Form 10-Q filed April 26, 2000 and the Registration Statement on Form S-1 for Silicon Labs' initial public offering, as consummated on March 23, 2000.
Note to editors: Silicon Laboratories, ISOmodem, ProSLIC, ISOcap, DSPLL, SiPHY and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders. |
