Silicon Laboratories(US:SLAB)2025-02-04 20:18Financial 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]