Exhibit 99
SILICON LABORATORIES REPORTS TEN PERCENT REVENUE GROWTH IN THE FIRST QUARTER
AUSTIN, Texas – April 25, 2005 – Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal ICs, today reported revenues of $105 million for the first quarter of 2005, a ten percent increase over the fourth quarter. First quarter fully diluted GAAP earnings per share increased 29 percent sequentially to $0.31. The company also announced that Daniel Artusi has resigned as president and chief executive officer and from the board of directors to pursue other interests. Nav Sooch, chairman of the board of directors, was named as interim chief executive officer.
Financial Results
GAAP operating income for the first quarter was $19.8 million dollars or 19 percent of revenue. Excluding a $753,000 non-cash charge for amortization of deferred stock compensation and a $1.4 million foreign government grant related to our 2004 research and development expenditures, adjusted operating income for the first quarter was $19.1 million dollars, representing 18 percent of revenue. The company ended the quarter with cash and short-term investments up $27 million to $304 million. The reconciling charges are set forth in the reconciliation of GAAP to non-GAAP financial measures table included below.
Business Summary
“I would like to thank Dan for his many contributions to Silicon Laboratories. Under his leadership, Silicon Laboratories expanded globally, diversified and established a strong foundation for future growth,” said Nav Sooch, chairman and interim chief executive officer. “The business remains very healthy, and I am especially pleased with the strong business fundamentals. We will continue to operate the business with a focus on new products, expanding markets and long-term growth.”
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During the quarter, the broad-based mixed-signal business posted stronger than expected growth and mobile handset revenues rebounded. The company announced advanced modem technology and new networking clock ICs to expand market share in existing markets. The company also recently announced an FM tuner family, expanding Silicon Laboratories’ presence in handset and portable devices, as well as the first in a suite of products addressing the large and growing power market.
Mobile handset revenues increased by nine percent during the quarter. Aero® II, the industry’s most integrated RF transceiver for handsets, ramped quickly into production as customer adoption accelerated.
The company anticipates revenue of $105 to $108 million in the second quarter of 2005.
Conference Call Today
A conference call discussing the first quarter results will follow the release at 4:15 p.m. Eastern Time. An audio webcast will be available simultaneously on Silicon Laboratories’ website under Investor Relations (www.silabs.com). A replay will be available after the call at the same website listed above or by calling 888-446-2545 (U.S.) or +1 402-998-1344 (international). These replays will be available through May 9, 2005.
About Silicon Laboratories Inc.
Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive, mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories’ diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with decades of cumulative expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. For more information about Silicon Laboratories please visit www.silabs.com.
Cautionary Language
This press release contains forward-looking statements based on Silicon Laboratories’ current expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that Silicon Laboratories may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; volatile stock price; average selling prices of products may decrease significantly and rapidly, especially for mobile handset products; dependence on a limited number of products and customers; risks associated with shifting market demand from GSM/GPRS to EDGE and WCDMA; difficulties developing new products that achieve market acceptance; risks that Silicon Laboratories may not be able to manage strains associated with its growth; dependence on key personnel; difficulties managing our manufacturers and subcontractors; difficulties managing international activities; credit risks associated with our accounts receivable; geographic concentration of manufacturers, assemblers, test service providers and customers in the Pacific Rim that subjects Silicon Laboratories’ business and results of operations to risks of natural disasters, epidemics, war and political unrest; product development risks; inventory-related risks; intellectual property litigation risks; risks associated with acquisitions, including the acquisition of Cygnal Integrated Products; the competitive and cyclical nature of the semiconductor industry and other factors that are detailed in Silicon Laboratories’ filings with the SEC. Silicon Laboratories disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Note to editors: Silicon Laboratories, Aero and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.
CONTACT: Silicon Laboratories Inc., Shannon Pleasant, 512/464-9254 investor.relations@silabs.com
Silicon Laboratories Inc.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
| | Three Months Ended | |
| | April 2,
2005 | | April 3,
2004 | |
Revenues | | $ | 104,764 | | $ | 113,623 | |
Cost of revenues | | 48,550 | | 51,866 | |
Gross profit | | 56,214 | | 61,757 | |
Operating expenses: | | | | | |
Research and development | | 18,967 | | 18,142 | |
Selling, general and administrative | | 16,721 | | 15,204 | |
Amortization of deferred stock compensation | | 753 | | 1,237 | |
Operating expenses | | 36,441 | | 34,583 | |
Operating income | | 19,773 | | 27,174 | |
Other income (expense): | | | | | |
Interest income | | 1,412 | | 479 | |
Interest expense | | (56 | ) | (50 | ) |
Other income (expense), net | | (15 | ) | 1,815 | |
Income before income taxes | | 21,114 | | 29,418 | |
Provision for income taxes | | 3,741 | | 9,503 | |
Net income | | $ | 17,373 | | $ | 19,915 | |
Net income per share: | | | | | |
Basic | | $ | 0.33 | | $ | 0.39 | |
Diluted | | $ | 0.31 | | $ | 0.36 | |
Weighted-average common shares outstanding: | | | | | |
Basic | | 52,468 | | 50,992 | |
Diluted | | 55,365 | | 55,290 | |
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
| | Three Months Ended | |
| | April 2,
2005 | | April 3,
2004 | |
GAAP operating income | | $ | 19,773 | | $ | 27,174 | |
| | | | | |
Adjustments: | | | | | |
Research and development grant | | (1,439 | ) | — | |
Amortization of deferred stock compensation | | 753 | | 1,237 | |
Adjusted operating income | | $ | 19,087 | | $ | 28,411 | |
| | | | | |
Adjusted operating income% | | 18 | % | 25 | % |
Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
| | April 2,
2005 | | January 1,
2005 | |
| | (Unaudited) | | | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 242,107 | | $ | 48,636 | |
Short-term investments | | 61,566 | | 228,470 | |
Accounts receivable, net of allowance for doubtful accounts of $1,464 at April 2, 2005 and $1,088 at January 1, 2005 | | 52,267 | | 46,272 | |
Inventories | | 29,986 | | 38,405 | |
Deferred income taxes | | 10,132 | | 9,878 | |
Prepaid expenses and other | | 6,072 | | 5,244 | |
Total current assets | | 402,130 | | 376,905 | |
Property, equipment and software, net | | 31,781 | | 34,559 | |
Goodwill | | 47,002 | | 46,766 | |
Other intangible assets, net | | 14,767 | | 15,384 | |
Other assets, net | | 12,477 | | 10,788 | |
Total assets | | $ | 508,157 | | $ | 484,402 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 33,589 | | $ | 37,001 | |
Accrued expenses | | 11,674 | | 11,913 | |
Deferred income on shipments to distributors | | 28,459 | | 25,227 | |
Income taxes payable | | 11,101 | | 8,207 | |
Total current liabilities | | 84,823 | | 82,348 | |
Long-term obligations and other liabilities | | 2,200 | | 2,570 | |
Total liabilities | | 87,023 | | 84,918 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity: | | | | | |
Preferred stock—$.0001 par value; 10,000 shares authorized; no shares issued and outstanding | | — | | — | |
Common stock—$.0001 par value; 250,000 shares authorized; 52,805 and 52,508 shares issued and outstanding at April 2, 2005 and January 1, 2005, respectively | | 5 | | 5 | |
Additional paid-in capital | | 291,301 | | 287,908 | |
Deferred stock compensation | | (3,904 | ) | (4,787 | ) |
Retained earnings | | 133,732 | | 116,358 | |
Total stockholders’ equity | | 421,134 | | 399,484 | |
Total liabilities and stockholders’ equity | | $ | 508,157 | | $ | 484,402 | |
Certain prior period amounts have been reclassified to conform to the current period presentation.
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