EX-99 2 slab-20250204q4earningsrel.htm EX-99

Exhibit 99

Silicon Labs Reports Fourth Quarter 2024 Results

Wireless IoT leader delivers in-line fourth-quarter results and guides to sequential growth in first quarter

AUSTIN, Texas – February 4, 2025 – Silicon Labs (NASDAQ: SLAB), a leader in secure, intelligent wireless technology for a more connected world, reported financial results for the fourth quarter, which ended December 28, 2024.

“The Silicon Labs team executed well to close out 2024, with fourth quarter revenue nearly doubling from the same quarter one year ago,” said Matt Johnson, President and Chief Executive Officer at Silicon Labs. “Looking ahead, we expect sequential revenue growth to resume beginning in the first quarter and are encouraged by our 2025 outlook as design wins across several key focus areas continue to ramp into production throughout the year.”

Fourth Quarter Financial Highlights

•Revenue was $166 million

•Industrial & Commercial revenue for the quarter was $89 million, down 8% sequentially

•Home & Life revenue for the quarter was $78 million, up 11% sequentially

Results on a GAAP basis:

•GAAP gross margin was 54.3%

•GAAP operating expenses were $119 million

•GAAP operating loss was $29 million

•GAAP diluted loss per share was $(0.73)

Results on a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the below GAAP to Non-GAAP reconciliation tables were as follows:

•Non-GAAP gross margin was 54.6%

•Non-GAAP operating expenses were $98 million

•Non-GAAP operating loss was $7 million

•Non-GAAP diluted loss per share was $(0.11)

Business Outlook

The company expects first-quarter revenue to be between $170 to $185 million. The company also estimates the following results:

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 $(0.75) to $(1.05)

On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items as set forth in the reconciliation tables:

•Non-GAAP gross margin to be between 54% to 56%

•Non-GAAP operating expenses of approximately $103 million to $105 million

•Non-GAAP diluted earnings (loss) per share between $0.01 to $(0.19)

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Earnings Webcast and Conference Call

Silicon Labs will host an earnings conference call to discuss the quarterly results and answer questions at 7:30 am CDT today. An audio webcast will be available on Silicon Labs’ website (www.silabs.com) under Investor Relations. In addition, the company will post an audio recording of the event at investor.silabs.com and make a replay available through March 6, 2025.

About Silicon Labs

Silicon Labs (NASDAQ: SLAB) is a leader in secure, intelligent wireless technology for a more connected world. Our integrated hardware and software platform, intuitive development tools, thriving ecosystem, and robust support make us an ideal long-term partner in building advanced industrial, commercial, home and life applications. We make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with innovative solutions that transform industries, grow economies, and improve lives. silabs.com

Forward-Looking Statements

This press release contains forward-looking statements based on Silicon Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Labs 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: the competitive and cyclical nature of the semiconductor industry; the challenging macroeconomic environment, including tariffs or any other policy changes; geographic concentration of manufacturers, assemblers, test service providers and customers in Asia that subjects Silicon Labs’ business and results of operations to risks of natural disasters, epidemics or pandemics, war and political unrest; risks that demand and the supply chain may be adversely affected by military conflict (including in the Middle East, and between Russia and Ukraine), terrorism, sanctions or other geopolitical events globally (including in the Middle East, and conflict between Taiwan and China); risks that Silicon Labs may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with international activities (including trade barriers, particularly with respect to China); intellectual property litigation risks; risks associated with acquisitions and divestitures; product liability risks; difficulties managing and/or obtaining sufficient supply from Silicon Labs’ distributors, manufacturers and subcontractors; dependence on a limited number of products; absence of long-term commitments from customers; inventory-related risks; difficulties managing international activities; risks that Silicon Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; dependence on key personnel; stock price volatility; the impact of public health crises on the U.S. and global economy; debt-related risks; capital-raising risks; the timing and scope of share repurchases and/or dividends; average selling prices of products may decrease significantly and rapidly; information technology risks; cyber-attacks against Silicon Labs’ products and its networks; risks associated with any material weakness in our internal controls over financial reporting; and other factors that are detailed in the SEC filings of Silicon Laboratories Inc. Silicon Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. References in this press release to Silicon Labs shall mean Silicon Laboratories Inc.

Note to editors: Silicon Laboratories, Silicon Labs, the “S” symbol, and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

CONTACT: Thomas Haws, Investor Relations Manager, (512) 416-8500, investor.relations@silabs.com

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

			Three Months Ended												Year Ended
			December 28, 2024						December 30, 2023						December 28, 2024						December 30, 2023
Revenues			$	166,249					$	86,845					$	584,386					$	782,258
Cost of revenues			76,026						42,919						272,198						321,672
Gross profit			90,223						43,926						312,188						460,586
Operating expenses:
Research and development			82,438						83,404						332,225						337,744
Selling, general and administrative			36,412						33,633						145,453						146,996
Operating expenses			118,850						117,037						477,678						484,740
Operating loss			(28,627)						(73,111)						(165,490)						(24,154)
Other income (expense):
Interest income and other, net			2,978						3,610						11,987						19,165
Interest expense			(260)						(942)						(1,310)						(5,554)
Loss before income taxes			(25,909)						(70,443)						(154,813)						(10,543)
Provision (benefit) for income taxes			(2,086)						(15,536)						36,197						7,943
Equity-method loss			—						(14,880)						—						(16,030)
Net loss			$	(23,823)					$	(69,787)					$	(191,010)					$	(34,516)
Loss per share:
Basic			$	(0.73)					$	(2.19)					$	(5.93)					$	(1.09)
Diluted			$	(0.73)					$	(2.19)					$	(5.93)					$	(1.09)
Weighted-average common shares outstanding:
Basic			32,420						31,848						32,191						31,804
Diluted			32,420						31,848						32,191						31,804

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Non-GAAP Financial Measurements

In addition to the GAAP results provided throughout this document, Silicon Labs has provided non-GAAP financial measurements on a basis excluding non-cash and other charges and benefits. Details of these excluded items are presented in the tables below, which reconcile the GAAP results to non-GAAP financial measurements.

The non-GAAP financial measurements do not replace the presentation of Silicon Labs’ GAAP financial results. These measurements provide supplemental information to assist management and investors in analyzing Silicon Labs’ financial position and results of operations. Silicon Labs has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share data)

						Three Months Ended December 28, 2024
Non-GAAP Income Statement Items						GAAP Measure						GAAP Percent of Revenue						Stock Compensation Expense						Intangible Asset Amortization												Non-GAAP Measure						Non-GAAP Percent of Revenue
Revenues						$	166,249
Gross profit						90,223						54.3		%				$	485					$	—											$	90,708					54.6		%
Research and development						82,438						49.6		%				10,199						5,437												66,802						40.2		%
Selling, general and administrative						36,412						21.9		%				5,460						—												30,952						18.6		%
Operating expenses						118,850						71.5		%				15,659						5,437												97,754						58.8		%
Operating income (loss)						(28,627)						(17.2		%)				16,144						5,437												(7,046)						(4.2		%)

						Three Months Ended December 28, 2024
Non-GAAP Loss Per Share						GAAP Measure						Stock Compensation Expense*						Intangible Asset Amortization*												Income Tax Adjustments						Non- GAAP Measure
Net income (loss)						$	(23,823)					$	16,144					$	5,437											$	(1,221)					$	(3,463)
Diluted shares outstanding						32,420																														32,420
Diluted loss per share						$	(0.73)																													$	(0.11)

*Represents pre-tax amounts

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Unaudited Forward-Looking Statements Regarding Business Outlook

(In millions, except per share data)

Three Months Ended April 5, 2025

Business Outlook

GAAP Measure

Non-GAAP Adjustments**

Non-GAAP Measure

Gross margin

54% to 56%

—

%

54% to 56%

Operating expenses

$128 to $130

$(25)

$103 to $105

Diluted earnings (loss) per share

$(0.75) to $(1.05)

$0.76 to $0.86

$0.01 to $(0.19)

**Non-GAAP adjustments include the following estimates: stock compensation expense of $20.1 million, intangible asset amortization of $5.4 million, and the application of a long-term non-GAAP tax rate of 20%.

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Silicon Laboratories Inc.

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

			December 28, 2024						December 30, 2023
Assets
Current assets:
Cash and cash equivalents			$	281,607					$	227,504
Short-term investments			100,554						211,720
Accounts receivable, net			54,479						29,295
Inventories			105,639						194,295
Prepaid expenses and other current assets			59,754						75,117
Total current assets			602,033						737,931
Property and equipment, net			132,136						145,890
Goodwill			376,389						376,389
Other intangible assets, net			36,499						59,533
Other assets, net			75,617						123,313
Total assets			$	1,222,674					$	1,443,056
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	42,448					$	57,498
Revolving line of credit			—						45,000
Deferred revenue and returns liability			3,073						2,117
Other current liabilities			52,362						58,955
Total current liabilities			97,883						163,570
Other non-current liabilities			44,770						70,804
Total liabilities			142,653						234,374
Commitments and contingencies
Stockholders’ equity:
Preferred stock – $0.0001 par value; 10,000 shares authorized; no shares issued			—						—
Common stock – $0.0001 par value; 250,000 shares authorized; 31,897 and 31,994 shares issued and outstanding at December 30, 2023 and December 31, 2022, respectively			3						3
Additional paid-in capital			78,227						16,973
Retained earnings			1,001,721						1,192,731
Accumulated other comprehensive income (loss)			70						(1,025)
Total stockholders’ equity			1,080,021						1,208,682
Total liabilities and stockholders’ equity			$	1,222,674					$	1,443,056

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Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

			Year Ended
			December 28, 2024						December 30, 2023
Operating Activities
Net loss			$	(191,010)					$	(34,516)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment			25,551						25,707
Amortization of other intangible assets			23,034						25,374
Amortization of debt discount and debt issuance costs			—						960
Stock-based compensation expense			61,503						48,208
Equity-method loss			—						16,030
Deferred income taxes			29,470						(11,815)
Changes in operating assets and liabilities:
Accounts receivable			(25,184)						42,142
Inventories			88,494						(93,398)
Prepaid expenses and other assets			27,362						(10,733)
Accounts payable			(15,155)						(25,644)
Other current liabilities and income taxes			(21,768)						(37,793)
Deferred revenue and returns liability			956						(4,663)
Other non-current liabilities			(17,163)						29,793
Net cash used in operating activities			(13,910)						(30,348)
Investing Activities
Purchases of marketable securities			(73,602)						(103,485)
Sales of marketable securities			54,227						395,565
Maturities of marketable securities			131,858						200,530
Purchases of property and equipment			(11,748)						(22,282)
Proceeds from sale of equity investment			12,382						—
Purchases of other assets			—						(520)
Net cash provided by investing activities			113,117						469,808
Financing Activities
Proceeds from issuance of debt			—						80,000
Payments on debt			(45,000)						(571,157)
Repurchases of common stock			(16)						(217,137)
Payment of taxes withheld for vested stock awards			(16,434)						(18,189)
Proceeds from the issuance of common stock			16,346						14,612
Net cash used in financing activities			(45,104)						(711,871)
Increase (decrease) in cash and cash equivalents			54,103						(272,411)
Cash and cash equivalents at beginning of period			227,504						499,915
Cash and cash equivalents at end of period			$	281,607					$	227,504