Company Acquires Bluegiga and Expands Internet of Things SAM
Silicon Labs (NASDAQ: SLAB), a leading provider of microcontroller, wireless connectivity, analog and sensor solutions for the Internet of Things (IoT), today reported financial results for its fourth quarter ended January 3, 2015. Revenue in the fourth quarter exceeded the top end of guidance and established a new record at $162.0 million, up from $158.1 million in the third quarter.
This week, the company announced its acquisition of Bluegiga, a leading provider of Bluetooth and Wi-Fi wireless modules and software based in Finland. By joining forces, Silicon Labs and Bluegiga offer customers a "one-stop-shop" source of wireless connectivity solutions and one of the strongest wireless development teams for the IoT. The company expects the acquisition to be accretive to 2015 non-GAAP earnings.
Financial Highlights
On a GAAP basis:
Gross margin was 59.7 percent
R&D expenses were $46.1 million
SG&A expenses were $39.5 million
Operating income as a percentage of revenue was 6.8 percent
Diluted earnings per share were $0.23
On a non-GAAP basis (results exclude the impact of stock compensation, amortization from acquired intangible assets and certain other items as set forth in the reconciliation tables below):
Gross margin was 60.1 percent
R&D expenses were $37.2 million
SG&A expenses were $32.3 million
Operating income as a percentage of revenue was 17.2 percent
Diluted earnings per share were $0.57
Business Highlights
Broad-based revenue delivered a third consecutive record quarter at $84.9 million, driven by record performance in Silicon Labs' microcontroller, wireless and sensor products.
Broadcast revenue exceeded expectations at $50.0 million.
Access revenue also exceeded expectations at $27.1 million.
Product Highlights
Introduced a new generation of EZRadio® and EZRadioPRO® radios, offering the highest levels of RF performance and single-chip integration in the sub-GHz wireless IC market while operating on a single coin-cell battery.
Added the new Si705x family of digital temperature sensors, providing the industry's most power-efficient temperature sensing option while maintaining accuracy across the entire operating voltage and temperature range.
Introduced the Si2151/41 TV tuner family, our sixth-generation solution for the digital TV market offering the smallest footprint and bill-of-materials cost, the lowest power and the best RF performance.
Launched our Si218x demodulator family supporting the latest satellite standards for global markets and terrestrial standards for Latin America and helping TV and set-top box manufacturers future-proof their designs and expand into new markets.
Business Outlook
The company expects revenue in the first quarter to be in the range of $156 million to $162 million and anticipates another record in its Broad-based products. First quarter diluted earnings per share are expected to be between $0.08 and $0.14 on a GAAP basis and between $0.42 and $0.48 on a non-GAAP basis. First quarter guidance reflects the acquisition of Bluegiga.
"We are pleased to have ended 2014 with record revenue for the quarter and our Broad-based products delivering a third consecutive record led by our MCU, wireless and sensor products," said Tyson Tuttle, CEO of Silicon Labs. "The acquisition of Bluegiga rounds out Silicon Labs' wireless portfolio, significantly expands our wireless connectivity solutions for the IoT and enables us to address a broader range of market opportunities and customer needs."
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