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]

Financial Performance - Silicon Laboratories reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.09, and a significant improvement from a loss of $0.92 per share a year ago, indicating an earnings surprise of 11.11% [1] - The company posted revenues of $177.71 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.08%, and showing a year-over-year increase from $106.38 million [2] Market Performance - Silicon Labs shares have increased approximately 1.7% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $188.85 million, and for the current fiscal year, it is $0.76 on revenues of $790.22 million [7] - The estimate revisions trend for Silicon Labs is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Semiconductor - Analog and Mixed industry, to which Silicon Labs belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance & Outlook - Q1 2025 revenue reached $178 million, a 7% increase quarter-over-quarter[11, 12] - Home & Life revenue in Q1 2025 was $82 million, a 99% year-over-year growth[11, 15] - Industrial & Commercial revenue in Q1 2025 was $96 million, a 47% year-over-year growth[11, 17] - GAAP gross margin improved to 55% in Q1 2025 from 543% in Q4 2024[22] - Non-GAAP loss per share improved by 27% to $(008) in Q1 2025 from $(011) in Q4 2024[27] - Q2 2025 revenue is projected to be between $185 million and $200 million[30] - The company anticipates non-GAAP earnings per share to be between $(001) and $019 for Q2 2025[30] Market & Growth Strategy - The company forecasts a 15-25% revenue growth, which is 3x the semiconductor market growth rate[42] - The IoT market is expected to grow at a CAGR of 10-15%, with an incremental 5-10% CAGR specific to the company[41] - The company has captured $10 billion in design wins, which are now converting to revenue[43] Customer Base - The largest customer accounts for less than 10% of the company's revenue[40] - The company has approximately 125 customers with $1 million in revenue[40]

[First Quarter 2025 Results Overview](index=1&type=section&id=First_Quarter_2025_Results_Overview) [Introduction and CEO Commentary](index=1&type=section&id=Introduction_CEO_Commentary) Silicon Labs reported strong sequential and year-over-year revenue growth in Q1 2025, driven by design wins across multiple end markets. The CEO expressed confidence in outperforming the market due to leadership in high-growth applications and consistent share gains, despite macroeconomic uncertainties - 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[2](index=2&type=chunk) - The company remains confident in its ability to outperform the market given its leadership position in secular high-growth applications and consistent share gains, despite macroeconomic uncertainty and shifting trade dynamics[2](index=2&type=chunk) [First Quarter Financial Highlights](index=1&type=section&id=First_Quarter_Financial_Highlights) Silicon Labs reported Q1 2025 revenue of $178 million, with significant year-over-year growth in both Industrial & Commercial (47%) and Home & Life (99%) segments. The company experienced GAAP operating loss of $32 million and non-GAAP operating loss of $7 million Q1 2025 Financial Highlights | Metric | GAAP Value | Non-GAAP Value | | :--------------------- | :----------- | :------------- | | Revenue | $178 million | | | GAAP Gross Margin | 55.0% | | | GAAP Operating Expenses | $130 million | | | GAAP Operating Loss | $(32) million | | | GAAP Diluted Loss Per Share | $(0.94) | | | Non-GAAP Gross Margin | | 55.4% | | Non-GAAP Operating Expenses | | $105 million | | Non-GAAP Operating Loss | | $(7) million | | Non-GAAP Diluted Loss Per Share | | $(0.08) | - Industrial & Commercial revenue for the quarter was **$96 million**, up **47% year-over-year**[4](index=4&type=chunk) - Home & Life revenue for the quarter was **$82 million**, up **99% year-over-year**[4](index=4&type=chunk) [Business Highlights](index=1&type=section&id=Business_Highlights) [Product Innovations and Market Ramps](index=1&type=section&id=Product_Innovations_Market_Ramps) Silicon Labs introduced several new products and platforms in Q1 2025, including the next-generation Series 3 platform, the BG29 family of Bluetooth LE SoCs, and the BG22L/BG24L SoCs, all featuring advancements in performance, AI/ML capabilities, and security for various IoT applications. The MG26 family, a Matter and multi-protocol solution, is now generally available - Silicon Labs' first device in its next-generation Series 3 platform on 22nm process technology is now ramping into production, offering advancements in performance, capabilities, and features, including higher levels of compute and AI inference[4](index=4&type=chunk) - Announced its new Series 2 BG29 family of Bluetooth Low Energy (LE) SoCs, designed to bring higher levels of compute and connectivity in ultra-compact form factor for applications like wearable medical devices, asset trackers, and smart sensors[4](index=4&type=chunk) - Introduced the BG22L and BG24L SoCs for Bluetooth LE, optimized for common Bluetooth applications; the BG24L SoC also includes the Silicon Labs accelerator for AI/ML applications and support for Bluetooth Channel Sounding[4](index=4&type=chunk) - The MG26 family of wireless SoCs, featuring double the Flash and RAM, advanced AI/ML processing, and best-in-class security for Matter and concurrent multi-protocol solutions, is now generally available[5](index=5&type=chunk) [Business Outlook](index=3&type=section&id=Business_Outlook) [Second Quarter 2025 Guidance](index=3&type=section&id=Second_Quarter_2025_Guidance) For Q2 2025, Silicon Labs expects revenue between $185 million and $200 million. GAAP guidance includes a gross margin of 55-57%, operating expenses of $129-131 million, and diluted loss per share of $(0.55) to $(0.95). Non-GAAP guidance projects a gross margin of 55-57%, operating expenses of $106-108 million, and diluted earnings (loss) per share of $(0.01) to $0.19 - The company expects second-quarter revenue to be between **$185 million to $200 million**[6](index=6&type=chunk) Q2 2025 GAAP Business Outlook | Metric | Range | | :-------------------------- | :-------------------- | | GAAP Gross Margin | 55% to 57% | | GAAP Operating Expenses | $129 million to $131 million | | GAAP Diluted Loss Per Share | $(0.55) to $(0.95) | Q2 2025 Non-GAAP Business Outlook | Metric | Range | | :----------------------------- | :-------------------- | | Non-GAAP Gross Margin | 55% to 57% | | Non-GAAP Operating Expenses | $106 million to $108 million | | Non-GAAP Diluted Earnings (Loss) Per Share | $(0.01) to $0.19 | [Reconciliation of GAAP to Non-GAAP Business Outlook](index=7&type=section&id=Reconciliation_GAAP_NonGAAP_Business_Outlook) The non-GAAP adjustments for the Q2 2025 outlook include estimated stock compensation expense of $20.5 million, intangible asset amortization of $3.3 million, and the application of a long-term non-GAAP tax rate of 20% Q2 2025 GAAP to Non-GAAP Business Outlook Reconciliation (Selected Items) | Business Outlook | GAAP Measure | Non-GAAP Adjustments | Non-GAAP Measure | | :-------------------------- | :----------- | :------------------- | :--------------- | | Gross margin | 55% to 57% | — % | 55% to 57% | | Operating expenses | $129 to $131 | $(23) | $106 to $108 | | Diluted earnings (loss) per share | $(0.55) to $(0.95) | $0.74 to $0.94 | $(0.01) to $0.19 | - Non-GAAP adjustments for Q2 2025 include estimated stock compensation expense of **$20.5 million**, intangible asset amortization of **$3.3 million**, and the application of a long-term non-GAAP tax rate of **20%**[21](index=21&type=chunk) [Financial Statements and Non-GAAP Reconciliation](index=5&type=section&id=Financial_Statements_NonGAAP_Reconciliation) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed_Consolidated_Statements_of_Operations) For the three months ended April 5, 2025, Silicon Labs reported revenues of $177.7 million, up 67.08% from the prior year period. Gross profit increased by 77.56%, and net loss decreased by 46.09% year-over-year, reflecting improved operational performance Condensed Consolidated Statements of Operations (Three Months Ended, in thousands) | Metric | April 5, 2025 | March 30, 2024 | YoY Change | | :-------------------------- | :--------------------------- | :-------------------------- | :--------- | | Revenues | $177,714 | $106,375 | +67.08% | | Cost of revenues | $79,937 | $51,306 | +55.79% | | Gross profit | $97,777 | $55,069 | +77.56% | | Operating expenses | $129,857 | $114,203 | +13.71% | | Operating loss | $(32,080) | $(59,134) | -45.75% | | Net loss | $(30,470) | $(56,526) | -46.09% | | Diluted loss per share | $(0.94) | $(1.77) | -46.95% | [Non-GAAP Financial Measurements and Reconciliation](index=6&type=section&id=NonGAAP_Financial_Measurements_Reconciliation) Silicon Labs provides non-GAAP financial measurements by excluding non-cash and other charges like stock compensation and amortization of acquired intangible assets to offer supplemental information for analyzing core operations, showing a non-GAAP operating loss of $(6.9) million and diluted loss per share of $(0.08) for Q1 2025 - Non-GAAP financial measurements exclude non-cash and other charges and benefits, such as stock compensation and amortization of acquired intangible assets, to provide supplemental information for analyzing core ongoing operations[16](index=16&type=chunk)[17](index=17&type=chunk) Q1 2025 GAAP to Non-GAAP Reconciliation (Selected Items, in thousands) | Metric | GAAP Measure | Stock Compensation Expense | Intangible Asset Amortization | Non-GAAP Measure | | :-------------------------- | :----------- | :------------------------- | :---------------------------- | :--------------- | | Gross profit | $97,777 | $613 | $0 | $98,390 | | Operating expenses | $129,857 | $19,101 | $5,437 | $105,319 | | Operating income (loss) | $(32,080) | $19,714 | $5,437 | $(6,929) | | Net income (loss) | $(30,470) | $19,714 | $5,437 | $(2,736) | | Diluted loss per share | $(0.94) | | | $(0.08) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed_Consolidated_Balance_Sheets) As of April 5, 2025, total assets were $1,229.5 million, a slight increase from December 28, 2024, driven by a 15.37% increase in cash and cash equivalents. Inventories decreased by 21.06%, while total liabilities increased by 12.91% quarter-over-quarter, primarily due to higher accounts payable and deferred revenue Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | April 5, 2025 | December 28, 2024 | QoQ Change | | :-------------------------- | :--------------------------- | :----------------------------- | :--------- | | Cash and cash equivalents | $324,877 | $281,607 | +15.37% | | Inventories | $83,397 | $105,639 | -21.06% | | Total current assets | $618,670 | $602,033 | +2.76% | | Total assets | $1,229,496 | $1,222,674 | +0.56% | | Accounts payable | $53,819 | $42,448 | +26.79% | | Deferred revenue and returns liability | $6,478 | $3,073 | +110.79% | | Total current liabilities | $119,719 | $97,883 | +22.31% | | Total liabilities | $161,077 | $142,653 | +12.91% | | Total stockholders' equity | $1,068,419 | $1,080,021 | -1.07% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) For the three months ended April 5, 2025, net cash provided by operating activities was $48.1 million, a significant improvement from a net cash used of $(71.8) million in the prior year, largely due to a reduced net loss and a $22.1 million decrease in inventories. Investing activities used $(3.9) million, and financing activities used $(0.96) million Condensed Consolidated Statements of Cash Flows (Selected Items, Three Months Ended, in thousands) | Metric | April 5, 2025 | March 30, 2024 | | :------------------------------------------ | :--------------------------- | :-------------------------- | | Net loss | $(30,470) | $(56,526) | | Stock-based compensation expense | $19,714 | $13,612 | | Inventories (change) | $22,098 | $(3,958) | | Net cash provided by (used in) operating activities | $48,128 | $(71,800) | | Net cash provided by (used in) investing activities | $(3,900) | $81,492 | | Net cash used in financing activities | $(958) | $(45,707) | | Increase (decrease) in cash and cash equivalents | $43,270 | $(36,015) | | Cash and cash equivalents at end of period | $324,877 | $191,489 | - Net cash provided by operating activities significantly improved to **$48.1 million** in Q1 2025, compared to net cash used of **$(71.8) million** in Q1 2024[25](index=25&type=chunk) [About Silicon Labs](index=3&type=section&id=About_Silicon_Labs) Silicon Labs (NASDAQ: SLAB) is a leading innovator in low-power wireless connectivity, providing embedded technology that connects devices and improves lives. Headquartered in Austin, Texas, the company is a trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets - Silicon Labs (NASDAQ: SLAB) is the leading innovator in low-power wireless connectivity, building embedded technology that connects devices and improves lives[7](index=7&type=chunk) - The company provides device makers with solutions, support, and ecosystems to create advanced edge connectivity applications, serving as a trusted partner for innovative solutions in the smart home, industrial IoT, and smart cities markets[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward_Looking_Statements) This section outlines various risks and uncertainties that could cause actual results to differ materially from Silicon Labs' forward-looking statements. These include fluctuating global trade policies, the competitive and cyclical nature of the semiconductor industry, macroeconomic challenges, geopolitical events, supply chain risks, and difficulties in product development and market acceptance - Forward-looking statements are subject to various risks and uncertainties, including fluctuating changes in global trade policies, the competitive and cyclical nature of the semiconductor industry, and the challenging macroeconomic environment[8](index=8&type=chunk) - Other factors that could cause actual results to differ include geographic concentration of manufacturers, risks from military conflicts and geopolitical events, difficulties developing new products, and intellectual property litigation risks[8](index=8&type=chunk) - Additional risks involve managing supply from distributors, dependence on a limited number of products, absence of long-term commitments from customers, inventory-related risks, and cyber-attacks against products and networks[10](index=10&type=chunk) [Additional Information](index=3&type=section&id=Additional_Information) [Earnings Webcast and Conference Call](index=3&type=section&id=Earnings_Webcast_Conference_Call) Silicon Labs hosted an earnings conference call and webcast on May 13, 2025, at 7:30 am CDT, with an audio recording available on their investor relations website until June 12, 2025 - Silicon Labs hosted an earnings conference call to discuss quarterly results and answer questions at 7:30 am CDT on May 13, 2025[6](index=6&type=chunk) - An audio webcast was available on Silicon Labs' website (www.silabs.com) under Investor Relations, with a replay available through June 12, 2025[6](index=6&type=chunk) [Note to Editors and Contact](index=4&type=section&id=Note_to_Editors_Contact) This section clarifies Silicon Labs' trademarks and provides contact information for investor relations - Silicon Laboratories, Silicon Labs, the 'S' symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc[11](index=11&type=chunk) - Investor Relations contact: Thomas Haws, (512) 416-8500, investor.relations@silabs.com[12](index=12&type=chunk)

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]