‘Firing on all cylinders,’ Silicon Labs sets revenue record

Feb 5, 2015
Austin American Statesman

Silicon Laboratories set a new revenue record in the fourth quarter and announced the acquisition of a Finnish wireless technology company

The Austin-based chipmaker has had a string of consecutive three record revenue reports. Revenue for the fourth quarter was $162 million, up from $158 million in the third quarter, which was also a record

“We’re really firing on all cylinders,” said CEO Tyson Tuttle, noting that the company has seen growth in all its businesses

The company also said it has completed the acquisition of Bluegiga Technologies, a provider of Bluetooth and Wi-Fi wireless modules and software based in Finland, for $61 million in cash

The Internet of Things is a chip industry term for the trend of connecting noncomputing devices - including home automation systems, automobiles and industrial equipment - to the Internet for remote monitoring and control

Silicon Labs’ stock surged on the report, closing up more than 8 percent to $47.82 a share Wednesday

Company officials say they are seeing growth in their broad-based product category, which targets Internet infrastructure like data centers and the Internet of Things, where the company’s microcontroller, wireless and sensor products have gained traction. The portion of Silicon Labs’ products relating to the Internet of Things makes up about a third of the company’s revenue, Tuttle said — he expects that to grow to more than half its revenue

Silicon Labs’ products are used in items such as energy meters and home security systems, which are part of home services rollouts from companies like Comcast and Time Warner

Silicon Labs employs about 1,100 worldwide, with nearly 600 employees in Austin

The fourth quarter results also topped analysts’ predictions

On a per-share basis, the company said it had net income of 23 cents. Earnings, adjusted for stock option expense and amortization costs, came to 57 cents per share

The results exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 47 cents per share

The chipmaker’s revenue of $162 million also exceeded Street forecasts; analysts expected $158.3 million, according to Zacks

For the current quarter ending in March, Silicon Labs expects its per-share earnings to range from 42 cents to 48 cents

The company said it expects revenue in the range of $156 million to $162 million for the fiscal first quarter. Analysts surveyed by Zacks had expected revenue of $153.7 million

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