Silicon Laboratories Reports Second Quarter 2002 Results
Company Announces Record Quarterly Revenue
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AUSTIN, Texas--(BUSINESS WIRE)--July 22, 2002--Silicon Laboratories Inc. (Nasdaq:SLAB - News), the mixed-signal IC innovator for the communications industry, today reported its second quarter results for the period ended June 29, 2002.
Financial Results
Second quarter 2002 revenues increased 43 percent sequentially to $41.2 million from $28.8 million for the first quarter of 2002. This represents a 156 percent increase over second quarter 2001 revenues of $16.1 million. Excluding certain non-cash charges, adjusted net income was $4.0 million in the second quarter of 2002, compared to the adjusted net loss of $1.5 million in the second quarter of 2001. Adjusted earnings per share in the second quarter of 2002 were $0.08, an improvement over the adjusted loss per share of $0.03 reported in the comparable quarter of 2001. The reconciling non-cash charges are set forth in the Supplemental Disclosure table included below. Net income for the second quarter, including a non-cash charge, was $2.7 million resulting in diluted earnings per share of $0.05.
As of June 29, 2002, cash and short-term investments totaled $99.5 million, down from the balance of $104.2 million at the end of the first quarter of 2002 principally due to capital expenditures to increase test capacity in support of multiple product families including wireless products for GSM mobile handsets. During the second quarter, research and development expenses were $8.2 million, an increase from $8.0 million in the first quarter of 2002. At the end of the second quarter, the company's headcount was 335, compared to 300 at the end of first quarter of 2002.
Business Summary
"The significant growth in our second quarter results marks our fifth sequential double-digit percentage revenue increase," said Nav Sooch, chairman and chief executive officer of Silicon Laboratories. "As anticipated, we saw continued sequential growth from multiple product lines, including the ISOmodem(tm), ProSLIC(tm), RF synthesizer and Aero(tm) transceiver. Our wireless business more than doubled compared to the previous quarter."
Silicon Labs reports that the increase in wireless revenues during the second quarter was driven by ramps of Aero transceiver designs at leading GSM handset and module manufacturers, including Samsung and Wavecom. Mr. Sooch noted, "Our customers' responses and fast adoption of the Aero transceiver underscore the value of our CMOS technology for RF applications in cellular handsets." Additionally, Silicon Labs' RF synthesizer business continued to grow in GSM cellular handsets and wireless local area network applications.
Wireline products also grew during the quarter as revenues increased from both the ISOmodem and ProSLIC product families. During the quarter, Silicon Labs expanded its industry-leading silicon DAA product family with a voice telephony DAA and a family of third-generation DAA products that provide complete hardware solutions integrating PCI functionality with reduced component count for notebook and desktop V.92 soft modems.
Business Outlook
"We expect third quarter revenues to reflect strong growth in several wireless and wireline product areas," said Mr. Sooch. "We expect another double-digit sequential growth quarter with third quarter revenues increasing by approximately ten to fifteen percent over the second quarter."
Conference Call Today
A conference call discussing the second quarter results is scheduled for today at 3:15 p.m. Central Time. An audio webcast will be available simultaneously on Silicon Laboratories' website (http://www.silabs.com) under Investor Relations, with a replay available through August 22, 2002. A telephone replay of the call will also be available approximately one hour after the completion of the call at 800-873-2066 (U.S.) and 402-220-5379 (International) through August 22, 2002.
About Silicon Laboratories
Silicon Laboratories Inc. designs, manufactures and markets proprietary high-performance mixed-signal integrated circuits (ICs) for a broad range of communications markets. Silicon Laboratories is an ISO9001-certified manufacturer and has applied for over 145 patents on its mixed-signal technology. Silicon Labs 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 contains 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, including the Form 10-K filed January 22, 2002, and the Form 10-Q filed April 22, 2002. Also see Form 10-Q that we anticipate will be filed on or about July 22, 2002.
Note to editors: Silicon Laboratories, ISOmodem, ProSLIC, Aero, SiPHY, DSPLL and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.
Silicon Laboratories Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
(Unaudited)
----------------------
June 29, June 30,
2002 2001
-------- --------
Revenues $ 41,185 $ 16,120
Cost of revenues 19,304 7,375
-------- --------
Gross profit 21,881 8,745
Operating expenses:
Research and development 8,211 7,070
Selling, general and administrative 8,299 4,746
Goodwill amortization -- 2,084
Amortization of deferred
stock compensation 1,308 1,331
-------- --------
Operating expenses 17,818 15,231
-------- --------
Operating income (loss) 4,063 (6,486)
Other income (expense):
Interest income 358 1,044
Interest expense (148) (201)
-------- --------
Income (loss) before income taxes 4,273 (5,643)
Provision (benefit) for income taxes 1,618 (757)
-------- --------
Net income (loss) $ 2,655 $ (4,886)
======== ========
Net income (loss) per share:
Basic $ 0.06 $ (0.11)
Diluted $ 0.05 $ (0.11)
Weighted average common
shares outstanding:
Basic 47,482 45,840
Diluted 50,901 45,840
Supplemental Disclosure
Adjusted Net Income (loss)/Adjusted Diluted Net Income (loss)
Per Share (Unaudited)
(in thousands, except per share data)
Net income (loss) $ 2,655 $ (4,886)
Non-cash adjustments:
Goodwill amortization -- 2,084
Amortization of deferred
stock compensation 1,308 1,331
-------- --------
Adjusted net income (loss) $ 3,963 $ (1,471)
======== ========
Shares used in computing adjusted
diluted net income per share 50,901 45,840
Adjusted diluted net income (loss)
per share $ 0.08 $ (0.03)
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
June 29, December 29,
2002 2001
--------- ---------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 65,229 $ 82,346
Short-term investments 34,307 18,902
Accounts receivable, net of allowance
for doubtful accounts of $665 at
June 29, 2002 and $490 at
December 29, 2001 21,253 10,543
Inventories 7,976 5,221
Deferred income taxes 2,268 2,268
Prepaid expenses and other 2,530 3,073
--------- ---------
Total current assets 133,563 122,353
Property, equipment and software, net 31,049 20,038
Goodwill and other intangible assets 199 199
Other assets 3,694 2,431
--------- ---------
Total assets $ 168,505 $ 145,021
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 19,823 $ 6,999
Accrued expenses 6,271 3,897
Deferred revenue 4,413 2,862
Current portion of long-term obligations 1,716 2,039
--------- ---------
Total current liabilities 32,223 15,797
Long-term debt and leases, net of
current maturities 650 1,363
Other long-term obligations 2,523 2,454
--------- ---------
Total liabilities 35,396 19,614
Stockholders' equity:
Common stock -- $.0001 par value;
250,000 shares authorized and 48,801
and 48,640 shares issued and at
outstanding June 29, 2002 and
December 29, 2001, respectively 5 5
Additional paid-in capital 172,354 170,567
Stockholder notes receivable (528) (794)
Deferred stock compensation (15,964) (18,603)
Retained earnings (accumulated deficit) (22,758) (25,768)
--------- ---------
Total stockholders' equity 133,109 125,407
--------- ---------
Total liabilities and stockholders' equity $ 168,505 $ 145,021
========= =========
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Contact:
Silicon Laboratories Inc., Austin
Christie Stout, 512/464-9321
investor.relations@silabs.com |
