Silicon Laboratories Reports First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Silicon Laboratories Inc.

    AUSTIN, Texas, April 24 /PRNewswire Interactive News Release/ --
 Silicon Laboratories Inc. (Nasdaq:   SLAB), the mixed-signal integrated circuit
 (IC) innovator for the communications industry, today reported its first
 quarter results for the period ended March 31, 2001.
 
     Financial Results
     First quarter revenues declined 26.9 percent to $14.4 million from
 $19.7 million for the comparable quarter in 2000.  The continued inventory
 correction in the personal computer industry greatly affected the demand for
 Silicon Laboratories' silicon Direct Access Arrangement (DAA) products.  Net
 loss from operations for the first quarter of 2001 was $1.2 million excluding
 non-cash charges relating to the amortization of goodwill and deferred stock
 compensation, compared to net income of $3.8 million in the first quarter of
 2000.  Net loss per share from operations before these non-cash charges was
 $0.03, a decline from the diluted $0.08 earnings per share reported for the
 comparable quarter in 2000.
     Expenses for research and development increased to $6.5 million, an
 80.6 percent increase from $3.6 million in the first quarter of 2000.  This
 increase, in both absolute and relative terms, reflects the company's
 continuing commitment to broadening both its product portfolio and customer
 base.  The company's headcount was 252 at the end of the first quarter of
 2001, compared to 190 employees at the end of the first quarter of 2000.  The
 net loss for the first quarter of 2001, including non-cash charges, was
 $0.10 per share compared to diluted earnings of $0.07 per share reported for
 the first quarter of 2000.  The company remained cash-positive for the
 quarter, ending the period with cash and investments totaling $97.2 million,
 up from $96.4 million at the end of the fourth quarter.
 
     New Product Development
     Revenues from products other than the silicon DAA represented 33 percent
 of first quarter revenue.  "Despite the difficult environment in the personal
 computer market, we saw growth in other areas.  Our wireless products saw a
 sequential revenue increase.  Our optical products contributed their first
 revenues this quarter, nearly three quarters ahead of the original plan,"
 stated Nav Sooch, chairman and CEO of Silicon Laboratories.  "We are
 encouraged by the success of our new products and fully expect that these
 solutions will continue to gain momentum.  Additionally, we are introducing an
 exciting array of new products and continuing to cultivate design wins across
 all product areas.  We were pleased to announce during the quarter that
 Samsung selected our Si4133G for its next-generation GSM handsets and that
 Motorola is using the ISOmodem in its latest satellite set-top boxes."
     On March 5, Silicon Labs introduced the Aero(TM) transceiver, the
 industry's first 100 percent CMOS transceiver for GSM cellular handsets.  The
 three-chip Aero features an unmatched level of integration and reduces the
 component count in the RF front end of a cellular phone from 120 components to
 21, resulting in a footprint that is one-quarter the size of alternative
 solutions.  Silicon Labs reports that the Aero is performing well against the
 stringent GSM/GPRS standards.
     In addition to the Aero, Mr. Sooch noted that Silicon Labs is planning to
 launch multiple new products in the near future, including an analog front end
 for DSL applications, a CDMA RF synthesizer and several products from the
 Optical Networking Division.  "We are at the beginning of a very aggressive
 schedule of new product introductions across all three product divisions,"
 observed Mr. Sooch.  "Each of these products represents a huge technological
 leap, not just an incremental improvement, and truly sets a new standard for
 integration and performance for the applications addressed.  We are
 anticipating bringing these solutions to market with great excitement, which
 drives our long-term optimistic view."
 
     Business Outlook
     "The decrease in our wireline business has clearly had a significant
 impact on our revenues recently.  At this point we have limited visibility
 into future market conditions for the PC business, although we have seen some
 indications of improvement," said Mr. Sooch.  "We expect revenue for the
 second quarter to be similar to the first quarter guidance, in the $13 to
 $15 million range, with a loss from operations of $0.03 to $0.05 per share."
     A conference call discussing the first quarter results is scheduled for
 today, 3:30 p.m. Central Time.  An audio webcast will be available
 simultaneously on the Silicon Laboratories website (www.silabs.com) under
 Investor Relations, with a replay available through May 8, 2001.  A telephone
 replay of the call will also be available approximately one hour after the
 completion of the call at (800) 294-5098 through May 8, 2001.
 
     About Silicon Laboratories
     Silicon Laboratories Inc. designs, manufactures and markets proprietary
 high-performance mixed-signal integrated circuits (ICs) for the wireless,
 wireline and optical communications industries. Silicon Laboratories is an
 ISO9001-certified manufacturer and has applied for over 95 patents on its
 mixed-signal technology.  The company was incorporated in 1996 and is based in
 Austin, Texas.  Additional information about Silicon Labs is available at
 www.silabs.com or through the toll-free investor relations line at
 1-877-411-SLAB (7522).
 
     Cautionary Language
     This press release may contain forward-looking statements based on Silicon
 Laboratories' current expectations.  These forward-looking statements involve
 risks and uncertainties, and actual future results may differ materially from
 those projected in the forward-looking statements.  These risks include, among
 others, the company's dependence on a limited number of customers for a
 significant majority of total sales, the dependence on the company's DAA
 products for a significant majority of Silicon Laboratories' sales, the risk
 that the company's new products may not achieve market acceptance, the risk
 that the company may not manage costs effectively, Silicon Laboratories'
 exposure to the cyclical nature of the semiconductor industry and the risk
 that the company may have underestimated the effect of the current downturn in
 the personal computer markets on the company's business.  For a discussion of
 these and other factors which could impact Silicon Laboratories' financial
 results and cause actual results to differ materially from those in the
 forward-looking statements, please refer to Silicon Laboratories' recent
 filings with the SEC, particularly the Form 10-K filed on January 22, 2001 and
 the Form 10-Q filed on April 24, 2001.  The forward-looking statements
 included in this release are made only as of the date of this release and the
 company undertakes no obligation to update the forward-looking statements to
 reflect subsequent events or circumstances.
 
     Note to editors: Silicon Laboratories, ISOmodem, ProSLIC, SiPHY and the
 Silicon Laboratories logo are trademarks of Silicon Laboratories Inc.  All
 other product names noted herein may be trademarks of their respective
 holders.
 
      Silicon Laboratories Inc.
      Consolidated Statements of Operations
      (in thousands, except per share data)
 
                                                      Three Months Ended
                                                          (Unaudited)
                                                    March 31,        April 1,
                                                      2001             2000
 
     Revenues                                       $14,437          $19,687
     Cost of revenues                                 6,428            6,757
     Gross profit                                     8,009           12,930
     Operating expenses:
       Research and development                       6,508           3,580
       Selling, general and administrative            4,090           3,218
       Goodwill amortization                          2,103             ---
       Amortization of deferred stock compensation    1,331             779
       Operating expenses                            14,032           7,577
     Operating income (loss)                         (6,023)          5,353
     Other (income) and expenses:
       Interest income                               (1,039)           (248)
       Interest expense                                 198             277
     Income (loss) before income taxes               (5,182)          5,324
     Provision (benefit) for income taxes              (594)          2,319
     Net income (loss)                              $(4,588)         $3,005
     Net income (loss) per share:
       Basic                                         $(0.10)          $0.14
       Diluted                                       $(0.10)          $0.07
     Weighted average common shares outstanding:
       Basic                                         45,367          21,221
       Diluted                                       45,367          45,952
 
 
      Supplemental Disclosure
      Adjusted Net Income (loss)/Adjusted diluted Net Income (loss) Per Share
      (Unaudited)
      (in thousands, except per share data)
 
     Net income (loss)                              $(4,588)         $3,005
 
     Non-cash adjustments:
       Goodwill amortization                          2,103             ---
       Amortization of deferred stock compensation    1,331             779
 
     Adjusted net income (loss)                     $(1,154)         $3,784
 
     Shares used in computing adjusted diluted
      net income per share                           45,367          45,952
 
     Adjusted diluted net income (loss) per share    $(0.03)          $0.08
 
 
 
      Silicon Laboratories Inc.
      Consolidated Balance Sheets
      (in thousands, except per share data)
 
                                                   March 31,      December 30,
                                                     2001             2000
     Assets                                       (Unaudited)
     Current assets:
       Cash and cash equivalents                    $67,454         $51,902
       Short-term investments                        29,771          44,536
       Accounts receivable, net of allowance for
        doubtful accounts of $431 at March 31, 2001
        and $758 at December 30, 2000                 7,027          13,616
     Inventories                                      7,887           7,219
     Deferred income taxes                            1,926           1,719
     Prepaid expenses and other                       1,969           1,119
     Total current assets                           116,034         120,111
     Property, equipment and software, net           21,865          22,625
     Goodwill and other intangible assets            37,445          39,686
     Other assets                                     2,497           2,418
     Total assets                                  $177,841        $184,840
 
     Liabilities and stockholders' equity
     Current liabilities:
       Accounts payable                              $5,546          $8,728
       Accrued expenses                               2,740           2,406
       Deferred revenue                               3,077           2,640
       Current portion of long-term obligations       2,112           2,078
       Income taxes payable                             ---             912
     Total current liabilities                       13,475          16,764
     Long-term debt and leases, net
      of current maturities                           2,862           3,390
     Other long-term obligations                      1,662           1,735
     Total liabilities                               17,999          21,889
 
     Stockholders' equity:
       Common stock--$.0001 par value; 250,000
        shares authorized and 48,350 and 48,117
        shares issued and at outstanding March 31, 2001
        and December 30, 2000,  respectively              5               5
     Additional paid-in capital                     165,631         165,404
     Stockholder notes receivable                    (1,202)         (1,202)
     Deferred stock compensation                    (19,809)        (21,061)
     Retained earnings                               15,217          19,805
     Total stockholders' equity                     159,842         162,951
     Total liabilities and stockholders' equity    $177,841        $184,840
 
 
      For more information, please contact:
 
      Debbie Laudermilk                         Christie Stout
      Investor Relations                        Corporate Communications
      Silicon Laboratories Inc.                 Silicon Laboratories Inc.
      (512) 464-9498                            (512) 464-9321
      investor.relations@silabs.com             PR@silabs.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41651663
 
 

SOURCE Silicon Laboratories Inc.
    AUSTIN, Texas, April 24 /PRNewswire Interactive News Release/ --
 Silicon Laboratories Inc. (Nasdaq:   SLAB), the mixed-signal integrated circuit
 (IC) innovator for the communications industry, today reported its first
 quarter results for the period ended March 31, 2001.
 
     Financial Results
     First quarter revenues declined 26.9 percent to $14.4 million from
 $19.7 million for the comparable quarter in 2000.  The continued inventory
 correction in the personal computer industry greatly affected the demand for
 Silicon Laboratories' silicon Direct Access Arrangement (DAA) products.  Net
 loss from operations for the first quarter of 2001 was $1.2 million excluding
 non-cash charges relating to the amortization of goodwill and deferred stock
 compensation, compared to net income of $3.8 million in the first quarter of
 2000.  Net loss per share from operations before these non-cash charges was
 $0.03, a decline from the diluted $0.08 earnings per share reported for the
 comparable quarter in 2000.
     Expenses for research and development increased to $6.5 million, an
 80.6 percent increase from $3.6 million in the first quarter of 2000.  This
 increase, in both absolute and relative terms, reflects the company's
 continuing commitment to broadening both its product portfolio and customer
 base.  The company's headcount was 252 at the end of the first quarter of
 2001, compared to 190 employees at the end of the first quarter of 2000.  The
 net loss for the first quarter of 2001, including non-cash charges, was
 $0.10 per share compared to diluted earnings of $0.07 per share reported for
 the first quarter of 2000.  The company remained cash-positive for the
 quarter, ending the period with cash and investments totaling $97.2 million,
 up from $96.4 million at the end of the fourth quarter.
 
     New Product Development
     Revenues from products other than the silicon DAA represented 33 percent
 of first quarter revenue.  "Despite the difficult environment in the personal
 computer market, we saw growth in other areas.  Our wireless products saw a
 sequential revenue increase.  Our optical products contributed their first
 revenues this quarter, nearly three quarters ahead of the original plan,"
 stated Nav Sooch, chairman and CEO of Silicon Laboratories.  "We are
 encouraged by the success of our new products and fully expect that these
 solutions will continue to gain momentum.  Additionally, we are introducing an
 exciting array of new products and continuing to cultivate design wins across
 all product areas.  We were pleased to announce during the quarter that
 Samsung selected our Si4133G for its next-generation GSM handsets and that
 Motorola is using the ISOmodem in its latest satellite set-top boxes."
     On March 5, Silicon Labs introduced the Aero(TM) transceiver, the
 industry's first 100 percent CMOS transceiver for GSM cellular handsets.  The
 three-chip Aero features an unmatched level of integration and reduces the
 component count in the RF front end of a cellular phone from 120 components to
 21, resulting in a footprint that is one-quarter the size of alternative
 solutions.  Silicon Labs reports that the Aero is performing well against the
 stringent GSM/GPRS standards.
     In addition to the Aero, Mr. Sooch noted that Silicon Labs is planning to
 launch multiple new products in the near future, including an analog front end
 for DSL applications, a CDMA RF synthesizer and several products from the
 Optical Networking Division.  "We are at the beginning of a very aggressive
 schedule of new product introductions across all three product divisions,"
 observed Mr. Sooch.  "Each of these products represents a huge technological
 leap, not just an incremental improvement, and truly sets a new standard for
 integration and performance for the applications addressed.  We are
 anticipating bringing these solutions to market with great excitement, which
 drives our long-term optimistic view."
 
     Business Outlook
     "The decrease in our wireline business has clearly had a significant
 impact on our revenues recently.  At this point we have limited visibility
 into future market conditions for the PC business, although we have seen some
 indications of improvement," said Mr. Sooch.  "We expect revenue for the
 second quarter to be similar to the first quarter guidance, in the $13 to
 $15 million range, with a loss from operations of $0.03 to $0.05 per share."
     A conference call discussing the first quarter results is scheduled for
 today, 3:30 p.m. Central Time.  An audio webcast will be available
 simultaneously on the Silicon Laboratories website (www.silabs.com) under
 Investor Relations, with a replay available through May 8, 2001.  A telephone
 replay of the call will also be available approximately one hour after the
 completion of the call at (800) 294-5098 through May 8, 2001.
 
     About Silicon Laboratories
     Silicon Laboratories Inc. designs, manufactures and markets proprietary
 high-performance mixed-signal integrated circuits (ICs) for the wireless,
 wireline and optical communications industries. Silicon Laboratories is an
 ISO9001-certified manufacturer and has applied for over 95 patents on its
 mixed-signal technology.  The company was incorporated in 1996 and is based in
 Austin, Texas.  Additional information about Silicon Labs is available at
 www.silabs.com or through the toll-free investor relations line at
 1-877-411-SLAB (7522).
 
     Cautionary Language
     This press release may contain forward-looking statements based on Silicon
 Laboratories' current expectations.  These forward-looking statements involve
 risks and uncertainties, and actual future results may differ materially from
 those projected in the forward-looking statements.  These risks include, among
 others, the company's dependence on a limited number of customers for a
 significant majority of total sales, the dependence on the company's DAA
 products for a significant majority of Silicon Laboratories' sales, the risk
 that the company's new products may not achieve market acceptance, the risk
 that the company may not manage costs effectively, Silicon Laboratories'
 exposure to the cyclical nature of the semiconductor industry and the risk
 that the company may have underestimated the effect of the current downturn in
 the personal computer markets on the company's business.  For a discussion of
 these and other factors which could impact Silicon Laboratories' financial
 results and cause actual results to differ materially from those in the
 forward-looking statements, please refer to Silicon Laboratories' recent
 filings with the SEC, particularly the Form 10-K filed on January 22, 2001 and
 the Form 10-Q filed on April 24, 2001.  The forward-looking statements
 included in this release are made only as of the date of this release and the
 company undertakes no obligation to update the forward-looking statements to
 reflect subsequent events or circumstances.
 
     Note to editors: Silicon Laboratories, ISOmodem, ProSLIC, SiPHY and the
 Silicon Laboratories logo are trademarks of Silicon Laboratories Inc.  All
 other product names noted herein may be trademarks of their respective
 holders.
 
      Silicon Laboratories Inc.
      Consolidated Statements of Operations
      (in thousands, except per share data)
 
                                                      Three Months Ended
                                                          (Unaudited)
                                                    March 31,        April 1,
                                                      2001             2000
 
     Revenues                                       $14,437          $19,687
     Cost of revenues                                 6,428            6,757
     Gross profit                                     8,009           12,930
     Operating expenses:
       Research and development                       6,508           3,580
       Selling, general and administrative            4,090           3,218
       Goodwill amortization                          2,103             ---
       Amortization of deferred stock compensation    1,331             779
       Operating expenses                            14,032           7,577
     Operating income (loss)                         (6,023)          5,353
     Other (income) and expenses:
       Interest income                               (1,039)           (248)
       Interest expense                                 198             277
     Income (loss) before income taxes               (5,182)          5,324
     Provision (benefit) for income taxes              (594)          2,319
     Net income (loss)                              $(4,588)         $3,005
     Net income (loss) per share:
       Basic                                         $(0.10)          $0.14
       Diluted                                       $(0.10)          $0.07
     Weighted average common shares outstanding:
       Basic                                         45,367          21,221
       Diluted                                       45,367          45,952
 
 
      Supplemental Disclosure
      Adjusted Net Income (loss)/Adjusted diluted Net Income (loss) Per Share
      (Unaudited)
      (in thousands, except per share data)
 
     Net income (loss)                              $(4,588)         $3,005
 
     Non-cash adjustments:
       Goodwill amortization                          2,103             ---
       Amortization of deferred stock compensation    1,331             779
 
     Adjusted net income (loss)                     $(1,154)         $3,784
 
     Shares used in computing adjusted diluted
      net income per share                           45,367          45,952
 
     Adjusted diluted net income (loss) per share    $(0.03)          $0.08
 
 
 
      Silicon Laboratories Inc.
      Consolidated Balance Sheets
      (in thousands, except per share data)
 
                                                   March 31,      December 30,
                                                     2001             2000
     Assets                                       (Unaudited)
     Current assets:
       Cash and cash equivalents                    $67,454         $51,902
       Short-term investments                        29,771          44,536
       Accounts receivable, net of allowance for
        doubtful accounts of $431 at March 31, 2001
        and $758 at December 30, 2000                 7,027          13,616
     Inventories                                      7,887           7,219
     Deferred income taxes                            1,926           1,719
     Prepaid expenses and other                       1,969           1,119
     Total current assets                           116,034         120,111
     Property, equipment and software, net           21,865          22,625
     Goodwill and other intangible assets            37,445          39,686
     Other assets                                     2,497           2,418
     Total assets                                  $177,841        $184,840
 
     Liabilities and stockholders' equity
     Current liabilities:
       Accounts payable                              $5,546          $8,728
       Accrued expenses                               2,740           2,406
       Deferred revenue                               3,077           2,640
       Current portion of long-term obligations       2,112           2,078
       Income taxes payable                             ---             912
     Total current liabilities                       13,475          16,764
     Long-term debt and leases, net
      of current maturities                           2,862           3,390
     Other long-term obligations                      1,662           1,735
     Total liabilities                               17,999          21,889
 
     Stockholders' equity:
       Common stock--$.0001 par value; 250,000
        shares authorized and 48,350 and 48,117
        shares issued and at outstanding March 31, 2001
        and December 30, 2000,  respectively              5               5
     Additional paid-in capital                     165,631         165,404
     Stockholder notes receivable                    (1,202)         (1,202)
     Deferred stock compensation                    (19,809)        (21,061)
     Retained earnings                               15,217          19,805
     Total stockholders' equity                     159,842         162,951
     Total liabilities and stockholders' equity    $177,841        $184,840
 
 
      For more information, please contact:
 
      Debbie Laudermilk                         Christie Stout
      Investor Relations                        Corporate Communications
      Silicon Laboratories Inc.                 Silicon Laboratories Inc.
      (512) 464-9498                            (512) 464-9321
      investor.relations@silabs.com             PR@silabs.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X41651663
 
 SOURCE  Silicon Laboratories Inc.