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 ...

Core Insights - Silicon Labs is redefining IoT connectivity standards with the MG26 SoC, enhancing multiprotocol wireless performance for smart home applications and enabling developers to create advanced solutions [1][2] - The MG26 SoC supports concurrent multiprotocol capabilities, allowing integration of various smart home devices into both Matter and Zigbee networks simultaneously, facilitating user automation [2][3] - The device features AI/ML capabilities for improved performance in tasks such as predictive maintenance and anomaly detection, positioning it as a leader in advanced IoT applications [3][4] Product Features - The MG26 SoC offers significant enhancements over the previous MG24 family, including doubled Flash, RAM, and GPIO capacity, enabling the development of advanced edge applications [4] - It includes embedded AI/ML hardware acceleration, allowing for up to 8x faster processing of machine learning algorithms while consuming only 1/6th the power compared to traditional CPU processing [4] - The device ensures best-in-class security with Silicon Labs Secure Vault™ and ARM TrustZone, compliant with all Matter security requirements, and supports secure OTA firmware updates [4][5] Market Position - Silicon Labs has been recognized globally for the MG26 SoC, winning multiple industry awards, indicating its strong market position and innovation in the IoT space [5] - The Matter ecosystem is expected to grow significantly, driven by new device types and enhanced security, with Silicon Labs being a leading semiconductor code contributor to Matter [6][7] - The company is positioned as a long-term partner for building advanced applications across various sectors, emphasizing its commitment to high performance, low power, and security [7]

Core Insights - Texas Semiconductor Innovation Fund awarded a $23 million grant to Silicon Labs to enhance semiconductor innovation and support local job creation [1][2] - The funding will facilitate the establishment of a new R&D laboratory in Austin, reinforcing Texas' position as a leading technology hub [1][4] - Silicon Labs aims to accelerate its innovation roadmap, particularly focusing on the development of its Series 3 technology, which enhances wireless connectivity for IoT devices [3][4] Company Overview - Silicon Labs is recognized as a leader in secure, intelligent wireless technology, particularly for the Internet of Things (IoT) [5] - The company provides an integrated hardware and software platform, along with development tools and ecosystem support, making it a key partner for advanced applications [5] - Silicon Labs emphasizes high performance, low power consumption, and security, supporting a wide range of multi-protocol solutions [5]

Group 1 - The article recommends a buy rating for Silicon Laboratories (NASDAQ: SLAB) based on expectations of strong growth inflection in FY25 [1] - The investment is considered ideal if the company operates in a sector projected to experience structural organic growth exceeding GDP growth over the next 5-10 years [1] - The company should have sustainable competitive advantages that lead to attractive unit economics and be managed by competent, ethical, and long-term thinkers [1] Group 2 - A fair valuation is also a critical factor for considering the investment [1]

Financial Performance - Revenues decreased by $197.9 million in fiscal 2024, totaling $584.4 million, a decline of 25.3% compared to fiscal 2023[174] - Gross margin fell to 53.4% in fiscal 2024 from 58.9% in fiscal 2023, primarily due to variations in customer and product mix[174] - Operating loss increased to $165.5 million in fiscal 2024, compared to an operating loss of $24.2 million in fiscal 2023[174] Expenses - Research and development expenses were $332.2 million in fiscal 2024, representing 56.9% of revenues, up from 43.2% in fiscal 2023[190] - Selling, general and administrative expenses decreased to $145.5 million in fiscal 2024, accounting for 24.9% of revenues, compared to 18.8% in fiscal 2023[191] - Interest income and other, net decreased to $12.0 million in fiscal 2024 from $19.2 million in fiscal 2023 due to lower interest-bearing investment balances[192] - Interest expense significantly decreased to $1.3 million in fiscal 2024 from $5.6 million in fiscal 2023, primarily due to the settlement of convertible senior notes[193] Cash and Investments - The company ended fiscal 2024 with $382.2 million in cash, cash equivalents, and short-term investments[175] - Net cash provided by investing activities was $113.1 million in fiscal 2024, down from $469.8 million in fiscal 2023, mainly due to a $380.1 million decrease in cash from marketable securities[200] - Net cash used in financing activities was $45.1 million in fiscal 2024, a significant reduction from $711.9 million in fiscal 2023, primarily due to lower debt repayments and stock repurchases[201] - As of December 28, 2024, the company had a $400 million revolving credit facility with no amounts outstanding, and a waiver of compliance for the minimum interest coverage ratio until March 29, 2025[202] Tax and Provisions - Provision for income taxes increased to $36.2 million in fiscal 2024 from $7.9 million in fiscal 2023, reflecting a change of $28.3 million due to a valuation allowance against deferred tax assets in the U.S. and Singapore[194] Accounts Receivable and Inventory - Accounts receivable stood at $54.5 million, representing 29 days sales outstanding (DSO) as of December 28, 2024[175] - Accounts receivable rose to $54.5 million at December 28, 2024, up from $29.3 million at December 30, 2023, primarily due to increased shipments in the last quarter of fiscal 2024[198] - Inventory was valued at $105.6 million, representing 125 days of inventory (DOI) as of December 28, 2024[175] - Inventory decreased significantly to $105.6 million at December 28, 2024, from $194.3 million at December 30, 2023, due to intentional reductions in response to decreased demand[199] Future Outlook - Future capital requirements will depend on sales growth, market acceptance, and potential acquisitions, with existing cash and credit expected to meet short-term and long-term needs[203] - Purchase obligations as of December 28, 2024, totaled $39.5 million, reflecting contractual arrangements with suppliers[204] - A 100 basis point decline in yield on the investment portfolio as of December 28, 2024, would decrease future annual interest income by approximately $3.0 million[214]