SLAB - Earnings call transcript Q3 2020 | Silicon Laboratories Inc.

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Operator

Good morning. My name is Cole. And I will be your conference operator today. At this time, I'd like to welcome everyone to Silicon Labs' Third Quarter Fiscal 2020 Earnings Conference Call. After today's presentation there will be an opportunity to ask questions. this being note Please Instructions] event recorded. is [Operator the to & George now Finance. like Director over turn to Relations I'd Lane, conference of International Investor George, please go ahead.

George Lane

Officer everyone. Thank on is Tuttle, good Cole, call. Hollister, morning, you, Chief Financial and today's Executive and Officer John Chief Tyson

the questions. discuss will for performance After prepared our business and We quarter. review comments financial activities our third we'll take

is Investor at the press financial tables for call the release www.silabs.com. in website our and available accompanying being a Relations earnings and of Our available section be webcast replay also This are will weeks. four

encourage will forward-looking of obligation information today available comments call in date the to to to which Our forward-looking on We could base these filings, SEC to factors as us conference contained in results cause important include actual our no the risks We those any and assume update identify uncertainties. to statements of subject from statements review forward-looking risk differ statements. materially that you these this statements, future. and

our Investor Labs today, now call earnings GAAP financial our to refer A will John is information. of call section to in over we to would Labs, turn of Hollister. non-GAAP non-GAAP and the in Officer, release Silicon certain the and reconciliation press results included website. Company's I Financial Relations Silicon to the during like Additionally, Chief

John Hollister

George. Thanks

ending at exceeding announce pleased range. to million a strong with finish $XXX are revenue third top We our the end to the guidance of quarter

$XXX more $XX or from all record set new QX, was revenue time up about our sequentially. up than at IoT QX quarter approximately products from XX%. Revenue Third X% million in a million,

product lighting our we ramps strength from sales growing connectivity and quarter, technologies, smarthome products, and the sequentially. XX% particular from saw wireless During with

in expected, a customers significantly from automotive demand revenue million. $XX infrastructure first to Timing revenue half. declined due strong third our coming was products off down our ending the quarter lower at and As from

to seasonal QX in of impacts tuners, stoppage Huawei. from radio. to late our in the timing to products a recovery from of as a had with quarter sales shipments strength slight automotive increased also We Revenue products as due well TV broadcast

to markets, strong quarter weakness in IoT. was end IoT in down in in from communications consumer on Automotive Americas Europe the the to growth. also second roughly quarter the timing. increased to Sales due to revenue into Geographically revenue significantly was APAC industrial strong was due third growth flat; revenue whereas in about third revenue up Turning revenue flat quarter. and was was in

our a top during wireless XX IoT IoT customers customer quarter, list into top the customer and our moved For US base customer. became

was third margin the product from and the seamless infrastructure as quarter, timing. QX. decline in in XX expected in QX I Distribution wireless rebound decline in differentiated products by at a This products larger high quarter, with earned customers of consumer highly and the from we owing some QX. all XX.X% Top gross XX at the now would our levels gross feature like experienced the industry, that higher offering as GAAP and note was were five we ended to than end integration. the down customers margins tier days, of to top in broadcast large Americas our of highest from in well mix XX IoT QX. combined margin wireless we IoT technology Non driven as with rich automotive revenue based a of lower expected products and and Top up XX of total in from Europe. include XX% customers IoT in revenue increased customers Revenue XX% to to Our the XX% around due DSI than the sales days

sharp primarily with earnings the second were seeing and $X expand to production were industry semiconductor an we to increases quarter million, inventory. with wireless are non-GAAP the demand million, year. outlook SG&A million chain R&D was our ended products supply in and at operating up at in business compensation the variable capacity share for and recovery $X.XX. in ended strong build XX.X% working improving this Non-GAAP operating are Non-GAAP customer the $XX our and we design $XX momentum, due aggressively half ramps about and Given million. in strong $XX IoT expenses expenses Non-GAAP of win expenses non-GAAP margin per

expenses XX.X%. Our quarter million SG&A non-GAAP at On R&D $XXX million. $XX was the a basis, for and GAAP GAAP $XX million, tax at operating were with $XX the expense was was margin assets amortization XX.X%. of per compensation quarter GAAP GAAP for Stock effective was million. Total was rate GAAP at margin QX share. for intangible gross with quarter earnings million for expenses $XX operating $X.XX X% GAAP the and

of $XXX million million. $XX XX approximately Turning we million ended cash receivable with now balance quarter to outstanding. at the Accounts investments ended sheet, or days and sales up the $XX

debt million. period total with of notes approximately also In Our $XXX inventory on fiscal about balance in of flow turns XXXX. quarter the ended same open market from a X% a convertible of executed million quarter X.Xx. operations representing down million Cash of and basis $XX $XXX year-to-date inventory the repurchases in QX, our declined from balance million $XX we to XXXX was approximately the

facility revolving Our remains credit with no effect in balance. drawn

liquidity strategies. for to now capital the ample deployment us execute I long-term cover have to our guidance will available quarter. fourth We

increasing. fourth and in of in expect and quarter $XXX range We to million the with million the to $XXX infrastructure be IoT revenue automotive both

be approximately non-GAAP expect to gross XX%. We margin

Our experienced by to in trends influenced gross quarter. continues we third be the margin outlook

IoT toward Due mix products our chain wireless to to range. tight from to factors, gross particularly be ramps of and our supply grow non-GAAP expect capacity. the expect of continued end We we these bottom margin operating

We non-GAAP effective be the our million tax expect non-GAAP XX% $XX rate for expenses to operating and quarter. fourth to

to operating to be $XXX over be now $X.XX the the of GAAP $X.XX. and non-GAAP turn in the share million expect to Tyson. $X.XX be to On will $X.XX. GAAP gross earnings of to earnings expect call I We we range a expenses XX%, in range per basis, to per margin share

Tyson Tuttle

Thank you, John.

was considerably stronger records. IoT see revenue win Bluetooth highlighting lifetime and product products connected set We we the wins the and are revenue continue records In acceleration our to well quarter. set design year-over-year. products QX up delighted to with of up bookings address. a leading world our sustained and record which suited a XX% particular, our strategy sequentially new quarter third designs are strength in more were that portfolio. Design wins than with toward expected Third quarter Both way XXX%

to IoT our now and products XX% total up demand of our in our design We for funnel. making see wins opportunity upside continue XX% of

lifetime IoT to revenue. Our opportunity $X billion over sequentially grew of funnel X%

and to support and neighbors work their portfolio, securely to and to Energy secure up, share Silicon we Wi replacement consumers diagnose category design home's growing created Millions ecosystem is partnerships. This wireless portion differentiated on to devices online to with will that IoT who our Chief throughout while IoT self connector range positioned each to of Amazon is and wireless is is and Gecko other that strengthen a have for last positive product Sidewalk Moving and In enable their and at to Fi We by home an their Amazon the quality cloud share service. connectivity. valuables protocols month life a built QX, convergence works will with wireless Sidewalk how connect order about we many We've we set of developers updates; free extends are broadband ultimate capabilities seeing small the exciting bandwidth Ring appliances create Jamie use, IoT industrial communication impact. conference enjoy demand simple developer with ability we IoT are quickly Sidewalk, IoT to during and to business missing our Inventor low lost announced IoT neighborhood. and to in of devices glad can well are new our enabled smartphone them a home security problems with to improved wireless the cloud. or our have for reduced enabling Sidewalk support wins across working gigahertz, a our and top outside more better portfolio range. wireless helps increasing easily encrypted locks Sidewalk the Smarthome, with consumer tangibly continue for as pets network Smart on the even sub consumption development when to furthering adding products collaboration devices to solution expected products were to in are of driving solutions tools us devices products. the wireless X front Bluetooth advancing the Labs joined and new parts. protocols details Series energy door. of free those permit experiences range wireless such and sidewalks, of application of Sidewalk that to IoT be the stay beyond Low layer locate to Siminoff protocols. broadest software works low connection, Founder

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series state-of- finding first a of billion six our X.X opportunity annual from To life September delivering low IoT Bluetooth PCB XXX platform, to The variant, devices long world's of X.X add energy T will We low Bluetooth F XX lead early cell. life identified us. end our to among XXX one wins growing with to just in cost units battery up art from the by continue XXX low the of Bluetooth The of direction Bluetooth of Silicon units variety debuted address the build launch taken turnkey modules. XXXX. portfolio Bluetooth and regulatory At front support forecasts the Vault design to while larger It modules be quarter in ultra IoT grow single SIG excited record modules. Bluetooth threats and on to the six Gecko Secure connectivity XXX size, on, the BGM in BGM T has to market. security suite coin X millimeters Bluetooth and provides BGM our IoT the XXX shipments BGM the to delivering multi two Labs we about F its security the and in F features in billion is protocol products. the year the issues small Wireless are BGM the Bluetooth best this all device and need to world's we in XXXX smallest Labs for Silicon expanded security battery a solutions

recognized earn two level certification. is PSA security search Our first global certification for the Vault Secure as Secure security. Vault smart radios products which arms standard to the the are from world's ioXt also IoT security received Alliance,

Stratus Silicon just class connected best apartment Vault retail unit. temporary apartment monitor mid advanced also as and buildings of staff and in offer remote areas, Secure a energy security to connected apartment smarthome use outside energy Secure specifically and capabilities SOCs The of to Gateway for as solution single Leap also units, Secure Labs Silicon enable is gates, control Awards devices devices their markets common awarded well Medal to equipped efficiency, Labs The complexes. security, were home. small managers privacy that recognizes security An smart Gold voice announced as capabilities how residential gateway of controls smart protocol XXXX family on system In placed designed wireless honoring elevators connecting adjacent evolving gateway to are property our with smart for problem. independent control with a to own ever community. Vault. smartphones and commercial areas. Stratus X.X is that allows technology hospitality, network strategically September, throughout as fully collaboration The common an throughout securely usage smart in a was application. Stratus Finally, address new, devices credential far uses a multi we can vacant to panel judges their sized devices Residents buildings, IoT unavailable such previously for solution built to Vault new and enter a and has deliver

and As to with about increase are talk a on to the trends retailers We year's Day smart sales, we XX% just Prime in retail; people retail. in heart holiday the this shopping to pandemic. due of technology. and things the consumers underscoring first, online pandemic would year-over-year kick online are two heavily shopping I how enter off season, like see alike smart Amazon's connected depending continues,

to and shopping physical time time, omni having to online safely and channel content. retailers do a profound two brick-and-mortar those minimal meaning minimal These indoors Second, effectively who develop shopping are want spent requiring impact which trends and do stores deploy so offline blend shopping. strategies

in at infrastructure of facilitate end also are by channel stock helping the warehouses. We're easily strategy. the Our stores through see make shelf bandwidth which and they omni manage to is and We customers heart experience shopping cost. a bolstering and much how labels store solutions facilitating safe locate this for connected online inventory convenient allow electronic staff to touch in store reduce need to products back

smartphone securely helps Our see on location location allow go smart to store. and having a guide tags information And lane. checkout precise to their technology and shoppers pricing product a shoppers through the store even and products staff without products to in purchase

continue an during expedite time our As addressing focus ongoing with pandemic, part to customers of health collaborate safety on the the our of product. needs to we market impactful and to

based For quarter warns poses to when a social risk COVID-XX to design streamlined the social and distancing focus begin users we simplicity time, startup wireless example, element was Labs development time becomes this new critical people device shipping Maggy distance and engineering Belgian Silicon to with small worked compact accelerate their that Maggy's too distancing between wearable market. company allowing and to design of that infection. solution a Bluetooth the on

portfolio opportunity the of vehicles. infrastructure Huawei in internet and to and for infrastructure, data see and continue strong now to a a delay to centers headwinds infrastructure Turning electric automotive the in related XG rollout, we the areas despite

great performance introduced noise single and gate frequencies, of of the in family side a factor combination any solution modules delivers and of switching, launched and immunity smaller for crystal smallest which telco month, that for footprint. oscillators require multiple operators new space high a required and application, industry's drivers small performance all factor need oscillators. deploying delivering cost, capabilities. new solutions, safer form traditional form we latency optimized a family oscillators the high we lower unified are generate faster Unlike performance optical client solutions. offering Datacenter timing This are to high low quarter, networks a may isolated This the side new line

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Chief Vice People to I'm Turning Serena President congratulate team, our and leadership to for Senior promotion a to happy officer. Townsend

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ahead, a Despite quarter. record acceleration and wins demand IoT we IoT. revenue the in an design Looking of we expect robust through environment, turbulent delivered with growth macro

silicon and We portfolio shape software our your this continue IoT connectivity well Thank to continue for broad and tools to future momentum. with you to time innovating attention. and of will the positioned are

George? like back Before call turn your I'd questions, we to to take George. the

George Lane

Thank you, Tyson.

We'd your follow to open the the ask you question a Barclays limit Before up. participation on questions December like many the Global before in TMT to a one one session, answer call the to up people Conference announce now we we using as XX possible to for as that your market open opens, like our virtual and platform. with questions I'd for call accommodate please

Operator

Our from question with Blayne will come Instructions] Barclays. [Operator Curtis today first

BlayneCurtis

think curiously about guys, just taking had seeing I IoT. strength for in thanks the of Hey, my you're two; kind questions.

this sitting doing and You benefit improvement home some while assuming around. people consumer. there's I'm are mentioned from all smarthome they're

about margin, any in an in of question range. what and on of you kind upside bottom gross kind year. And just curiously obviously of then second the think the next saw So just perspective

I mix think of design wireless mix. will being You mentioned the XX% the wireless of continue a you said I'm percent assuming and to increase wins, as

on just mix where as the percent perspective then that a any thoughts gross wireless becomes September, So part? and as in bigger margin

TysonTuttle

smartphone, Thanks coming and it's for really we large seeing lighting, There's let home double industrial Blayne. wireless got part, and cover there's robust a building digit top then in really systems, John the year. tracking, online, the consumer smart some broad. security that ahead I'll retail really lot gross a to ramps strong in things customers. IoT, path of a lot activity, next question, with applications And covered we are design very margins, first like just mentioned and we the retail; there we've very, I'll very, growth very see are ramps, and automation, revenue growth tier are asset win of

to the As a in year, share seeing we've digit the years what see expands, starting an production. in revenue now that design of lot company. same to whole SAM seen, QX, and wireless and opportunity the think we're did here we we into see kind and wireless up ramp last is that as of everything We growth for very, very XX% strong. couple we double I the of continue doing we've been really growth win, The funnel, XX% take next the work growth for is

And the accelerated towards we've IoT some general of pandemic, and general. some programs. in trends a those trend And in connected just having of seen devices the that

in very customers we as very, as tier seeing are positive. one of here. that it's at both trends the are broader And well base very, IoT So, yes, the customers the

JohnHollister

is John. this Yes, Blayne,

part as weakness IoT on half the with what a are in in we the of it's first you're combination IoT. a margin. With really pullback So also reminder, a a our the business. placed of quarter right; strong timing, saw Combined Huawei the function and of very general margins as factors our strength and mix. gross a margin restrictions corporate in on of in third a gross And off coming below that average timing was bit both gross topic,

see do So those And, it's continuing. yes, we factors. really a combination that two of

TysonTuttle

IoT Yes, There, high the they XXs. gross margins overall timing. are would are certainly bit Blayne, than gross a less in to that the in levels, like just below there margin I our little mention but corporate

that's revenue the second So timing when seeing you you'll shift what we're next that see half. gross occur, and in for swap here IoT margin,

BlayneCurtis

IoT about I wireless think that guess or XXs, is being case? follow a within the in margins that the should not we high quick up the lower the if

JohnHollister

the detail It's it customer mix much in Yes. going factors without technology various -- within blend there's IoT. really into -- into gets specific But specific, application it's and there. too a itself,

TysonTuttle

the think or look and is revenue. the the at is wireless and you Yes, of two wireless the IoT I it in And thirds than mix IoT XXs. more mix high

the are then on gets depending that side, there's the range. in microcontroller with On wireless blended and various which same margins, the a in mix the technologies,

the the would quite I across target, in have So say XXs wireless not we as well, high and in everything, our that, wireless the, that XX% is but it's

Operator

will question from next with Fargo. Our come Mobley Wells Gary

GaryMobley

on the thanks for What double click taking guys, gross margin. question. Hey, of to topic my

of Speaking mix would the the growth the you something maybe supply radio being a you way mentioned standards like some you and characterize chain. Wi in mix, gross see tight versus, C Fi wireless within you like for as and that's and and mix wireless a based seeing rates the more the Bluetooth significant difference about some little each, lower margins inflation? Are wave, in for of your outsized IoT, proprietary do supply

TysonTuttle

portion well there in very includes and as and volume the consumer more the ZigBee, also in then Wi of look, margins. applications; well. respectable of and growth of to We, are between a you've cover line as strong is customers difference is if the very be the a and smartphone And those very we're standards Bluetooth line, you the chips. Fi I seeing Thread. as And volume mix we're GeeWay of higher XX smaller margins between and strong large tend still smaller business, lot those Yes, kind modules seeing uptick mix customers. can dot four, got the and and and there's which also

range proprietary into much overall, see it's a there, bit top end there's bottom don't that, -- broad eight that the the more maybe customers, to and between we blend the in So say above, the and side, networks, probably include but have I is of between the of gigahertz XX volume would then and things. sub sensors would would And, I standard. than want stuff little bit variation I which the say a industrial the too that that variation, variation of lot on we CUs proprietary in maybe I on GeeWay that's and the on is not the that the question. bit these based wireless of based range other not that it huge on you goes into a But And that very of but John, cover a you part mix. is in

JohnHollister

the added our reports Yes, order a a bit tight some pressure the that's right, profile. with pressure We're the mean, ensure Tyson. customers. and I And suppliers in capacity And supply Yes. here seeing there. is manufacturing second there is this But cost strong there of strong yes, across sector rebound on service with on to carefully the working you're Gary, half. chain,

GaryMobley

a was follow Huawei. of The export a missing to in targeting the What customer it. third get quarter? what's up, Got from wanted as Huawei I the sense restrictions

JohnHollister

direct both the indirect rate the supply the chain. Huawei for been business has includes as run as Yes, some that well state Huawei And X% addressing steady in range.

X%. it's So about

Operator

SMBC. Pajjuri from question with next will come Our Srini

SriniPajjuri

terms morning, terms you. John, trends just what seeing guys. channel cetera. Good in your DSI curious of et in of inventory, you're Thank

your up just I'm you're down. demand, to go as inventories curious, strong QX, the you're Given channel looking or seeing if

JohnHollister

not fourth we would expect try it we reported add declined would In five days how that; order stable quarter. hold from to expect the been has going grow very not POS POS to we're days XX through DSI third like goal actually we that of be slightly. out to quarter, But can to strong we'll quarter. days the everything process as we XX flow I some inventory, Srini. balance increase as if this our a the our in Yes, days. But, to Ideally, the year. large we strong, just in see round do do

SriniPajjuri

Got I it And on just to said grew business, you sequentially. then know up it. the auto follow

peers are demand strong to reporting for are has Some the not strongly. seeing business recovered stronger of is the big your we very as curious you, coming that is and numbers, how very I'm guess, auto recovery back, why production a I just there.

JohnHollister

not large It's Yes, revenue. focus order particular as the targeted; auto footprint we X%, it's is us. as infotainment an sockets about the electric on of of with And, well tremendously total our have X% more for emerging in vehicles.

I exposure than what nature broad you're anything. the seeing some based peers more auto with think of their more

Operator

Svanberg with question next come from Our Tore Stifel. will

ToreSvanberg

thank Yes, Question for you maybe a you. Tyson or elaborate could just little bit more.

IoT if broad some could fruits side growth. going you be big the customers said of hard growth? expecting pretty still on driving you're and that Hope of based elaborate Are that a just the little on you really to some obviously starting see work Is more that? lot to you're You about, a talking growth? bit strong

TysonTuttle

surpassed we large our IoT do demand in the move particular, were the on had in $X we And just top customers And at customers mentioned IoT win the continuing numbers, very demand that We the a number our actually, are in side, IoT, top we've XX our based the list to is have ramp IoT same wireless that that. strong broad the have had and a customer. Tore, have and is by customers five funnel top one of design XX in here, customers both through customers years. really It's a now IoT quite in Top strong customer we been tier now billion. funnel, they in now a for about of it

as across it's and segments So really really it's well. both

applications. sure a make and of IoT variety it's that being know, the of stable But to also able tens out has you from you supporting opportunity thousands components you're address has of customers lot that challenge applications, platform and that And functionality of in As to us. a are thousands just across is both diversity different an applications it's of in it. -- it's a efficient those different because concept both with have that of the developing a and

our where to cost expand portfolio with push capabilities So points to and Simplicity and it we of standards, to use the ease it evolve products. the be. add continue up to continue integration additional we and launch to our for our X point keep And customers our tools, the easier Studio new the needs of to make to to design to wireless in levels to continue

software, convert So we're a of if to of as try be we and terms to efficiency very to range. our of as and around R&D. able get about in better as continue lot the to is customer and excited that portfolio broad side possible. take and opportunity better really much it design opportunity well our and the the And that support the into wins And

ToreSvanberg

Thank you QX. follow for sequential up be order in that. And infrastructure as up and my to guided you

So being a Or just more timing the up? the category in recovery business? are to it see you is starting broader

TysonTuttle

it's of the more really Yes, broader Tore. category,

the down be in to timing expect fourth We quarter. slightly

Operator

with Gill next Our from Company. & will Rajvindra come Needham question

RajvindraGill

congrats Yes, on momentum. thank the you and IoT

in deeper bit little a the digging Just IoT.

to about of IoT contribution? wondering of mix How that, that wireless the components the about the think Tyson I'm do of than GeeWay that also XXXX? in IoT mentioned business, into think of kind think I do the more revenue. we how business Redpine module just we And should XXXX? is thirds two moving about the we you'd think how going

TysonTuttle

Yes.

a and the important the lot microcontrollers varies a side, number and don't lot with year about of ramping next next side. microcontroller and more the towards are Redpine the a you'll the industrial we in two production on from We wireless So in got applications and commercial, includes momentum we With, with that adds particular design includes by got. customers the device security to momentum industrial the customers of our with good was number in we And essentially the traction wireless and the to existing see Redpine next with see that, that with integrated there. got consumer solution a Wi more tier shift mix solutions But and integration wireless. happy the of about and total. we well. going like wireless the Certainly out bit. win Hyderabad. microcontroller. the either break you've all a A Wi at continue as has Fi an to customers that generation of with wins the and separate Fi to products the place thirds So going as connected XX% we've products think -- smarthome that year a of of drive a smartphone be in an continues continue market. in over have and and GeeWay talked into are you given design standard and our having And revenue that develop silicon wireless shot of have the we or QX, a that team wireless one into times lot of stuff XXXX on growing That over GeeWay, proprietary

wireless going time, of of over higher and continue is of will that revenue up a mix coming out it. wireless portion have to to So click the higher concentration and

RajvindraGill

Very as good outside IoT thoughts of it your see nature move technology, to your kind precise wideband phones applications ultra auto, wondering a a question technology. we're on starting are ultra regarding mobile in what and thoughts on wideband of in given into the of on that localization,

TysonTuttle

narrow you of location bit get a of They is take lot it's are does UWB like you can ones. technology, good. Wi not Bluetooth, a technology universal can it's or you to arrival, of a And Fi, angle give other that than although UWB mean, or with precise get one universal And ability get pretty you two more you and if now, of use. deployed, these then I -- is within UWB, feet, kind can which people technology. universally Bluetooth Yes, better distance it's a to

is an it's applications or got interesting so handsets, various other It's are. people that in see range where communication between in automotive, handsets, mostly you or a thing, whether for So narrow of it's can applications. handset with

very adoption phase. a in little it's very, early nascent. So And it's bit of the I still think more

low or for technology. very also required But doesn't don't It it I range, certainly of success the in range monitoring So technologies core very we're see very, that as IoT. that travel far. slow very one has

it's limits also that So useful.

RajvindraGill

I question. squeeze one more in if And could just

double I Path I'm me think to for company that in if you had mentioned, IoT? wrong. just correct digit or for entire the growth calendar XXXX was

TysonTuttle

where believe we And well. very that design digit bookings. we've certainly the company business out for not But and wins, right shot a guidance IoT year. segment we those today, momentum a XX% IoT a feel year growth Yes, we got point continuing macro that about, here. at other at of at entire we'll we the that and direction. giving here factors. QX, double our shot market the in QX, the ability lot given And next what good wireless, look within positive and now the confident see growth to very on in year. the And in And see in that next that formal momentum grow, as talked in depends we is next But turns are which into

Operator

next question Capital. Roth Suji will Our Desilva with from come

SujiDesilva

John. Good here. progress Tyson. morning, Good morning, IT the on Congratulations

new that your newer next I'm On the of just into versus are color applications characterize that you're I'm design path and socket? Bluetooth products the Are existing you're as Any if you where you capturing seeing volume be down a lack would Bluetooth coming shared for the going I to seeing term. Bluetooth, wondering generation? high helpful. protocol so Bluetooth, wins, guess focus to multi single

TysonTuttle

the optimized volume some the degree versions optimized on They're capable highly have two, new we are were our XX take Bluetooth lot many series learning; and applications. which version, products, into we brought depending a more the portfolio feedback of also for and protocol which of very introduced we able a that for As applications. of set into still of were high we but nanometer, of multi the moved our to capability,

wireless you of are some proprietary year-over-year a for XXX% by very terms a applications. Bluetooth there, the of probably see we Bluetooth, so an we really taking growth in wins in strongest something gain And see certainly, itself, combination we see or mixed, as design protocols, of existing of Bluetooth for Bluetooth as out opportunity the coming lot sockets new the like GeeWay all in includes growth Bluetooth, even application. it's out Thread but share or And from this with competitors. or well applications a with strong that ZigBee as And or,

a way connectivity across lot a Bluetooth you'll a onboarding the a or will ZigBee, then a times standard, whether mobile commission applications. a you Bluetooth, very network. the phone. allows to use to can that's or common You with onto different really but network device connect Fi, different or And devices of GeeWay Wi That's Thread, so of with

so of from and standpoint. multi extremely terms capabilities direction But for And the latest also the have of in features, and performance competitive we of a cost, arrival. angle the, integration, the capability instance, standard all adopting Bluetooth protocol is an important very solution of and versions finding

in its protocols. how competitive a on customers very have to up digital basis mix the standalone platform very depending on we So flexible want

SujiDesilva

which a perhaps, for color. then for the the helpful Okay, perhaps concept? there move seasonality profile follow that it kind seasonality XXXX large in of customer about we are past connectivity not in years? drive John, enough think second increased, to And first helping wins, and IoT how of should Is ups quarter in is the seems versus with design shift question Or that success.

JohnHollister

a in have Suji, including typically, be plays into an factors, referencing, would momentum our due of see end see question. the unusual expect Yes, we it what right and time you're it's how given we variety this And head one as to some year onwards. down is strength first it's, We'll that quarter the to a out and now; good to bookings.

but would now. First Yes. down. think of seasonal right strong are quarter But it's, very bookings outlook, typically it would

Operator

Our Ramsay Cowen. next with question will come from Matt

MattRamsay

you everybody. the thirds next year IoT good the growth your the for so or just of to just of the is on segment? that Yes, Thanks morning, whole XX% one that franchise of your Thanks. growth a wireless thing comments portion, XX% Tyson, clarify, goal taking IoT for potentially two was questions. made there

TysonTuttle

can, was wireless. particular applications there That microcontroller microcontrollers our there lot is, with the more being, It's about that are of modest. are gross wireless with thirds remainder so is a on much to that to two this are and side to -- you moving

XX% portion the some, the shift wireless, see but So of the mix over it. more you to certainly wireless is

MattRamsay

you that Thank it. clearing Got for up.

of couple end. my a For questions on

characterize the for those content with fill other markets. impaired the business, wireless Huawei the the rest remains the Maybe that is and one business any with some those if in how across might Huawei The things to positioned wonder voids in overall, the as of obviously, is difference in headwind just not business applications and I and in competitors hit of lots them, you're own but in their key infrastructure first yourself that impaired remains margins, step and the of providers might you of those reasons. any folks you rest guys industry. sell wired that timing can't how appreciable of

TysonTuttle

Yes.

that XG; networking for also equipment, broadly designs their And optical pretty We years communications Huawei. there. good the into broader So we very we sold to some worked in sold we've into had system on echo equipment.

where out haul, you there. data the, Cisco, of in in of see the X%, high and think BGP, but the taking Nokia, XX companies, an have in a pull network, on kind we important region position long for suppliers we John really long we also much all markets, the is have opportunity applications not With We're providing in then performance an emerging have mentioned networking I Ericsson, to the in strong have But the is of that core infrastructure up XG, in we datacenter. -- the haul other world the market. we other equipment bulk that important. essentially an that if It's metro makers, area. was vendors, sell depending in but we depending emerging revenue top Samsung, you're emerging an five the pretty not in timing very revenue, slack timing talking position the about path, on XG maybe have have some the type really it's of go instance, there performance we the the And everybody XG of in broad; Top four us. to And piece, for sell about. automotive, timing, data, we're but bulk the very in the then we in, high timing within datacenter in opportunity

MattRamsay

just last, picture I And one bigger, IoT Got it. for quick the Thanks on guess, market. that. question

home maybe might We've as don't talk you're I a you but step I little the I if bigger through give and sort everybody on going that's seeing together. particularly doing wonder as of that term, of during I've been usability at back been know the a trapped real ecosystem and how automation about upgrades. you some home lots ramping, think perspective if customer come COVID programs situation.

For and to automate in me do my I can home iPhone about apps everything XX personally, I now. need it.

bigger Thanks. involved adoption. customers is industry with you're of any I on usability just consortiums, accelerate of might wonder So in some like company the might these be dealing your that doing ecosystems if consolidating any that work

TysonTuttle

in am of lighting speak. control house upgrading all Yes, we as the ask, my I should you funny I actually

interface coverage. there's Apple ecosystems? devices. everything see as, on like mean, works in confusion devices make had implementing that, the this consumers I conference, to actually networks, to trying and make Home really on are it a and I all we Comcast, haven't was And user less in about with.biolab.com. new there's Amazon companies So so it home the person easier focus ended in to consumer to well and be largest And onboard us see something conference, XX a connect lot Alexa, attending use, of for -- smart you going those an as world. a Amazon, all a that, are we Google lots took the into standards home out from, talk these progress to there. fact, and we tremendous checked progress apps on. really we like convergence to ecosystems convergence and conference, do of I up a of and need and our with conference and virtually and leadership of Google, position how purpose the out of of if And phone. about well event, that was how to be and these and together And in of this attended think people as But and the these great this media groundbreaking companies was in in it's not and lesson we by tech trying it's this people X,XXX Austin. from ecosystems be converge really whole event, is actually we'll the planned to strong the stuff, going able that it ease on figure that here converge extremely that virtual it general, did We they just we a kit, working see in around out, registering person and So had more with them you this the how And onboarding in to our events X,XXX have is some

use the -- And, but As that's ease you added, and scale. to see must we -- going it to is to I is for the starting continue it's this IoT build. think addressed also long capabilities path. is continue think new to get going momentum is are that technologies a to year, -- new But know, it's every something I and of

Operator

question-and-answer session. would George our turn Lane. the back concludes like conference I over this to to And

George Lane

joining us call. today's this all you, concludes Cole. for morning. This you thank Thank And

Operator

today's gentlemen, Ladies concluded. you Thank presentation. attending has conference now the and for

now You this at time. disconnect your may lines

George Lane	Director of Investor Relations and International Finance
John Hollister	Senior Vice President and Chief Financial Officer
Tyson Tuttle	President and Chief Executive Office
Blayne Curtis	Barclays
Gary Mobley	Wells Fargo
Srini Pajjuri	SMBC Nikko Securities Inc
Tore Svanberg	Stifel Financial Corp.
Rajvindra Gill	Needham & Company
Suji Desilva	Roth Capital Partners
Matt Ramsay	Cowen Inc

Silicon Laboratories (SLAB) 28 Oct 202020 Q3 Earnings call transcript