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01/10 20:12
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a generally positive outlook with strong product development, market positioning, and growth projections. The Q&A section supports this with confirmations of growth targets and strong design win momentum, despite some uncertainties in sequential growth guidance. The revenue outlook indicates significant YoY and sequential growth, and gross margins remain high. Although there are expected losses per share, non-GAAP EPS is positive. The market cap suggests moderate volatility, supporting a positive prediction for stock movement.
Revenue Revenue for the June quarter was $193 million, up 9% sequentially and up 33% year-over-year. The increase was driven by customer ramps in electronic shelf label deployments, continued smart meter rollouts, and a steady demand improvement for a wide range of industrial applications.
Industrial and Commercial Business Revenue June quarter revenue was $110 million, up 14% sequentially and up 25% year-over-year. Growth was driven by customer ramps in electronic shelf label deployments, continued smart meter rollouts, and steady demand improvement for industrial applications.
Home & Life Business Revenue June quarter revenue was $83 million, up 2% sequentially and up 45% year-over-year. Growth was driven by new design ramps with medical customers, which more than doubled compared to the same quarter last year.
Gross Margin GAAP gross margin was 56.1%, and non-GAAP gross margin was 56.3%, up 90 basis points from the prior quarter. The improvement was attributed to the long tail channel sales and industrial applications benefiting the mix.
Operating Expenses GAAP operating expenses were $131 million, including share-based compensation of $20 million and intangible asset amortization of $3 million. Non-GAAP operating expenses were $107 million, consistent with prior guidance.
Operating Income/Loss GAAP operating loss was $23 million, while non-GAAP operating income was $1 million.
Tax GAAP tax charge was approximately $3 million, and the non-GAAP tax rate remained at 20%.
Earnings Per Share (EPS) GAAP loss per share was $0.67, and non-GAAP earnings per share were $0.11, beating the midpoint of guidance by $0.02.
Cash and Investments Ended the quarter with $416 million in cash, cash equivalents, and short-term investments.
Inventory Balance sheet inventory remained flat at $81 million, with days of inventory on hand improving to 86 days from 94 days in the prior quarter.
Series 2 platform: Continues to drive rapid revenue growth and share gains, with significant growth in Bluetooth and Wi-Fi products.
Series 3 platform: Introduced the 301 device, the world's first to achieve PSA Level 4 security certification, and announced the 302 device for next year, focusing on energy efficiency and wireless performance.
Wi-Fi device 917: Provides battery-powered Wi-Fi connectivity for Roku battery cameras, enabling 1080p operation for up to 2 years.
Home and Life business: Revenue up 45% year-over-year, driven by smart home applications and connected healthcare customers.
Industrial and Commercial business: Revenue up 25% year-over-year, supported by electronic shelf labeling, smart metering, and industrial applications.
Healthcare market: Strong growth potential, with continuous glucose monitoring expected to become 10% of revenue.
Revenue growth: Achieved $193 million in Q2, up 9% sequentially and 33% year-over-year.
Gross margin improvement: Non-GAAP gross margin increased to 56.3%, up 90 basis points from the prior quarter.
Operating expenses: Non-GAAP operating expenses remained consistent at $107 million.
Market share expansion: Driven by Series 2 platform and new design wins in areas like commercial building controls and logistics applications.
New partnerships: Focused on connected healthcare and emerging medical applications like remote vital sign monitors.
Supply chain resilience: No direct impact from shifting tariff rules; customer inventory levels are relatively low.
Tariff Discussions: Evolving tariff discussions are limiting visibility and creating uncertainty in forecasting, which could indirectly impact global demand and the company's operations.
Customer Inventory Levels: While customer surveys indicate lower inventory positions compared to 90 days ago, any unexpected changes in inventory levels could disrupt demand and supply chain planning.
Supply Chain Impact: Although no direct impact from shifting tariff rules has been observed, potential indirect effects on the supply chain remain uncertain.
Economic Cyclical Recovery: The company's end markets are in a cyclical recovery phase, which could be vulnerable to economic downturns or slower-than-expected recovery.
Operating Expense Management: The company is tightly managing operating expenses, but any deviation from this strategy could impact profitability and financial performance.
Revenue Projections: Revenue for the September quarter is anticipated to be in the range of $200 million to $210 million, implying a strong 23% year-over-year growth rate and a 6% sequential growth.
Market Performance: Silicon Labs expects to outperform the broader semiconductor market this year, driven by new customer design ramps and improving cyclical demand.
Gross Margin: Gross margin for the September quarter is expected to improve, with both GAAP and non-GAAP gross margin projected to be in the range of 57% to 58%.
Operating Expenses: GAAP operating expenses for the September quarter are expected to range between $130 million and $133 million, while non-GAAP operating expenses are projected to be between $107 million and $110 million.
Earnings Per Share: GAAP loss per share is expected to range from $0.60 loss to $0.20 loss, while non-GAAP earnings per share are projected to range from $0.20 to $0.40.
Customer Inventory Trends: Customer surveys indicate lower inventory positions compared to 90 days ago, with no significant changes in customer forecasts.
Product Launches: The Series 3 platform has been introduced, with the 301 device shipping in volume production and achieving PSA Level 4 security certification. The 302 device is expected to sample next year, offering industry-leading energy efficiency and wireless performance.
Market Share Expansion: The Series 2 platform continues to drive market share growth, with new design wins in areas such as commercial building controls, connected healthcare, and logistics applications like real-time asset tracking.
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The earnings call reveals positive financial performance with a 23% YoY revenue growth and improved gross margins. Product development is strong, with new launches and market share expansion. The Q&A indicates optimism, especially with low customer inventory levels and growth potential in asset tracking and Wi-Fi. However, the lack of specific long-term guidance and reliance on short-term factors for margin improvement temper enthusiasm slightly. Overall, the positive elements outweigh the uncertainties, suggesting a potential stock price increase.
The earnings call presents a generally positive outlook with strong product development, market positioning, and growth projections. The Q&A section supports this with confirmations of growth targets and strong design win momentum, despite some uncertainties in sequential growth guidance. The revenue outlook indicates significant YoY and sequential growth, and gross margins remain high. Although there are expected losses per share, non-GAAP EPS is positive. The market cap suggests moderate volatility, supporting a positive prediction for stock movement.
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