Silicon Laboratories (SLAB) Q1 2025 Earnings Call May 13, 2025 08:30 AM ET Company Participants Giovanni Pacelli - Senior Director of FinanceMatt Johnson - President and Chief Executive OfficerDean Butler - CFO & Senior Vice PresidentThomas O'Malley - Director - Equity ResearchTore Svanberg - Managing DirectorJoseph Moore - Managing Director Conference Call Participants Christopher Rolland - Senior Equity AnalystCody Acree - Equity Research AnalystQuinn Bolton - Senior Analyst Operator Hello, my name is Did ...

Financial Data and Key Metrics Changes - Revenue for the first quarter was $178 million, up 7% sequentially and 67% year over year [12][13] - GAAP gross margin was 55%, while non-GAAP gross margin was 55.4%, showing improvement from the previous quarter [14][15] - GAAP loss per share was $0.94, and non-GAAP loss per share was $0.08, beating the midpoint of guidance by $0.01 [16][19] Business Line Data and Key Metrics Changes - Home and Life business revenue was $82 million, up 5% sequentially and nearly doubling year over year with a growth rate of 99% [13][14] - Industrial and Commercial business revenue was $96 million, up 8% sequentially and 47% year over year [12][13] - Distribution partners' sell-through momentum increased, with channel inventory decreasing to 48 days, down from 56 days in the prior quarter [14][18] Market Data and Key Metrics Changes - The company expects to outperform the broader semiconductor market due to strong design win momentum and growth in high-demand sectors like connected healthcare and smart home applications [6][19] - The outlook for the second quarter anticipates revenue in the range of $185 million to $200 million, implying 32% year-over-year growth and 8% sequential growth [19][20] Company Strategy and Development Direction - The company is focused on supply chain diversification and innovative product development, particularly in the IoT space [7][8] - The introduction of new products, such as the BG29 family of Bluetooth SoCs and the MG26 multi-protocol SoC, is expected to drive future growth [9][10] - The company aims to maintain a competitive edge through differentiated technology and a strong product portfolio [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sequential growth despite macroeconomic uncertainties, driven by design win ramps and new product introductions [6][19] - There are no significant impacts from current tariff rules, and customer forecasts remain stable [17][18] - The company is optimistic about growth in the second half of the year, relying on new product ramps rather than broad market recovery [23][25] Other Important Information - The company has completed a review of its supply chain, finding minimal direct impact from current tariff rules [17][18] - The company plans to gradually increase channel inventory to target levels of 70-75 days over the coming quarters [32][55] Q&A Session Summary Question: Thoughts on September and the second half outlook - Management indicated that customer forecasts and inventory levels are behaving well, and growth is expected to come from design win ramps rather than broad market strength [22][23] Question: Performance comparison between Home and Life and Industrial and Commercial - Management noted that Home and Life grew 99% year over year, while Industrial and Commercial grew 47%, with the metering business ramping faster than expected [26][28] Question: Channel inventory strategy for June - The expectation is to increase channel inventory to low 50 days, with a long-term goal of reaching 70-75 days [32][33] Question: Revenue contribution from new products - A majority of incremental revenue is coming from new product ramps, with no significant pricing differences affecting gross margins [34][36] Question: Progress on targeted growth segments - Management confirmed that the three targeted segments are progressing well, with additional growth vectors emerging [38][40] Question: Series two and Series three revenue contribution - Series two is increasingly larger in revenue contribution, while Series three is expected to have higher average selling prices due to enhanced features [43][44] Question: Inventory normalization timeline - Management suggested that normalizing channel inventory to target levels could take until the end of the calendar year or longer, depending on sales trends [55][56] Question: Pricing environment and competition - Pricing remains consistent, with no significant changes affecting market share, as the company focuses on differentiation rather than competing solely on price [57][58]

Silicon Laboratories (SLAB) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to loss of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this chipmaker would post a loss of $0.11 per share when it actually produced a loss of $0.11, delivering no surprise.Over the last four quarters, the company has surpassed ...

This presentation contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectatio ...

Silicon Labs Reports First Quarter 2025 Results Wireless IoT leader delivers strong sequential and year-over-year revenue growth AUSTIN, Texas – May 13, 2025 – Silicon Labs (NASDAQ: SLAB), the leading innovator in low-power wireless, reported financial results for the first quarter, which ended April 5, 2025. "Silicon Labs drove strong sequential and year-over-year revenue growth as design wins across multiple end markets continued ramping in the first quarter of 2025," said Matt Johnson, President and Chie ...

Core Viewpoint - Silicon Labs reported strong sequential and year-over-year revenue growth driven by design wins across multiple end markets, despite macroeconomic uncertainties [1][3]. Financial Highlights - Revenue for the first quarter was $178 million, a significant increase from $106.4 million year-over-year, representing a growth of approximately 67% [3][8]. - Industrial & Commercial revenue was $96 million, up 47% year-over-year, while Home & Life revenue reached $82 million, up 99% year-over-year [3]. - GAAP gross margin was 55.0%, with GAAP operating expenses at $130 million, resulting in a GAAP operating loss of $32 million [3][8]. - Non-GAAP gross margin was 55.4%, with non-GAAP operating expenses at $105 million, leading to a non-GAAP operating loss of $7 million [3][8]. Business Outlook - The company expects second-quarter revenue to be between $185 million and $200 million [3]. - The first device in the next-generation Series 3 platform is ramping into production, featuring advancements in performance and AI capabilities [3]. - New product announcements include the Series 2 BG29 family of Bluetooth Low Energy SoCs and the MG26 family of wireless SoCs, aimed at enhancing connectivity and performance in various applications [3]. Balance Sheet Overview - As of April 5, 2025, total assets were $1.229 billion, with cash and cash equivalents at $324.9 million [14][15]. - Total liabilities stood at $161.1 million, while stockholders' equity was $1.068 billion [15]. Cash Flow Summary - The net cash provided by operating activities was $48.1 million, a significant improvement compared to a net cash used of $71.8 million in the previous year [15]. - The company experienced an increase in cash and cash equivalents of $43.3 million during the quarter [15].

Core Viewpoint - Silicon Labs is set to announce its first quarter 2025 financial results on May 13, 2025, followed by an earnings conference call at 7:30 a.m. Central Time [1]. Company Overview - Silicon Labs (NASDAQ: SLAB) is a leading innovator in low-power wireless technology, focusing on embedded technology that connects devices and enhances lives [3]. - The company integrates advanced technology into highly integrated System on Chips (SoCs), providing solutions and support for device makers in creating edge connectivity applications [3]. - Headquartered in Austin, Texas, Silicon Labs operates in over 16 countries and is recognized as a trusted partner in the smart home, industrial IoT, and smart cities markets [3].

Core Insights - Silicon Labs is a leading innovator in low-power wireless connectivity, focusing on embedded technology that connects devices and enhances lives [2] - The company has released its 2024 Annual Report to Shareholders and 2025 Proxy Statement, which are available on its Investor Relations page [1] - A Corporate Sustainability Report for 2024 has also been published and is available for download on the company's website [1] Company Overview - Silicon Labs is headquartered in Austin, Texas, and operates in over 16 countries [2] - The company provides solutions, support, and ecosystems for device makers to create advanced edge connectivity applications [2] - Silicon Labs is recognized as a trusted partner in the smart home, industrial IoT, and smart cities markets [2]

Core Insights - Silicon Labs has introduced the new Series 2 BG29 family of wireless SoCs, designed for high compute and connectivity in ultra-small Bluetooth Low Energy devices, particularly for applications in connected health and medical devices [1][4] - The BG29 features substantial memory capacities, including 1 MB Flash and 256 kB RAM, enabling advanced applications such as real-time data processing and complex algorithm execution [2][7] - The device integrates a DCDC boost for wide voltage range support and a Coulomb counter for accurate battery monitoring, enhancing the performance and user experience of portable medical devices [3][7] Product Features - The BG29 is available in compact quad flat no-lead (QFN) and wafer-level chip scale packages (WLCSP), making it suitable for a variety of applications, from tiny battery-powered sensors to larger medical devices [2][7] - It offers industry-leading security through Silicon Labs Secure Vault™ High, designed to protect sensitive data against local and remote attacks with advanced encryption and secure key management [3][7] - The BG29 family is expected to be generally available in Q3 of this year, providing device makers with the opportunity to develop innovative solutions in the connected health sector [5][8] Market Impact - The introduction of the BG29 addresses the challenge of miniaturization in connected healthcare, allowing for the development of smaller devices without sacrificing performance or power [4][5] - The device's capabilities are expected to empower manufacturers to create advanced, reliable designs that can improve patient outcomes and enhance the user experience in health monitoring applications [8]

AUSTIN, Texas, March 11, 2025 /PRNewswire/ -- Silicon Labs (NASDAQ: SLAB), the leading innovator in low-power wireless, today reaffirmed its guidance for the first quarter of 2025 in conjunction with its 2025 Analyst Day. The company expects first-quarter revenue to be between $175 to $180 million. The company also estimates the following:On a GAAP basis: GAAP gross margin to be between 54% to 56% GAAP operating expenses of approximately $128 million to $130 million GAAP diluted loss per share between $(0.7 ...