Silicon Laboratories(US:SLAB)2024-02-19 16:00Financial Performance - Revenues decreased by $241.8 million in fiscal 2023, totaling $782.3 million, a decline of 23.6% compared to fiscal 2022[178] - Gross margin fell to 58.9% in fiscal 2023 from 62.7% in fiscal 2022, primarily due to variations in product mix and costs[178] - Operating loss for fiscal 2023 was $24.2 million, a significant decline from operating income of $119.3 million in fiscal 2022[178] - Selling, general and administrative expenses decreased by $44.0 million to $147.0 million in fiscal 2023, a 23.0% reduction compared to fiscal 2022[196] - Equity-method loss was $16.0 million in fiscal 2023, a significant decline from earnings of $3.4 million in fiscal 2022, mainly due to a loss on the sale of an equity-method investment[200] Research and Development - Research and development expenses increased to $337.7 million in fiscal 2023, representing 43.2% of revenues, up from 32.5% in fiscal 2022[195] - The company introduced new products in fiscal 2023, including a new family of microcontroller units and integrated Bluetooth SoCs, aimed at expanding market opportunities[180] Cash Flow and Investments - Cash, cash equivalents, and short-term investments at the end of fiscal 2023 totaled $439.2 million, with net cash used in operating activities amounting to $30.3 million[179] - Net cash used in operating activities was $30.3 million in fiscal 2023, a decrease from net cash provided of $141.3 million in fiscal 2022[204] - Net cash provided by investing activities was $469.8 million in fiscal 2023, up from $240.5 million in fiscal 2022, primarily due to marketable securities transactions[207] - Net cash used in financing activities decreased to $711.9 million in fiscal 2023 from $887.1 million in fiscal 2022, mainly due to reduced stock repurchases[208] Inventory and Demand - The overall demand environment for the company's products is weak, with customers reducing inventory levels and frequently requesting cancellations and changes[192] - Inventory increased to $194.3 million at December 30, 2023, from $100.4 million at December 31, 2022, reflecting efforts to minimize supply disruptions[206] Tax and Interest - Provision for income taxes decreased to $7.9 million in fiscal 2023 from $38.5 million in fiscal 2022, with an effective tax rate of (29.9)% compared to 29.6% in the previous year[199] - Interest income increased to $19.2 million in fiscal 2023 from $13.9 million in fiscal 2022, primarily due to higher market interest rates[197] Future Projections - Estimated revenues for the first quarter of fiscal 2024 are projected to be between $100 million and $110 million, with a gross margin of 52%[202] Currency and Risk Management - The company is exposed to foreign currency exchange rate risk primarily through assets, liabilities, and operating expenses of subsidiaries denominated in currencies other than the U.S. dollar[228] - Gains and losses from foreign currency forward contracts are recognized in earnings in the same period during which the hedged transaction is recognized[228] Employee Costs - Total employee separation costs incurred during fiscal 2023 were $9.1 million due to a workforce reduction of approximately 10%[178]