Technology

Keep Your Eyes on This Stock Alert: Silicon Labs (NASDAQ: SLAB)

Silicon Labs (NASDAQ: SLAB) stock observed trading -4.41% off 52-week high price. On the other end, the stock has been noted 50.70% away from low price over the last 52-weeks. The stock disclosed a move of 0.65% away from 50 day moving average and 13.00% away from 200 day moving average. Moving closer, we can see that shares have been trading 0.85% off 20-day moving average. It has market cap of $4842.63M .

Silicon Labs (NASDAQ: SLAB), a leading provider of silicon, software and solutions for a smarter, more connected world, reported financial results for its third quarter ended September 28, 2019. Revenue was at the high end of guidance at $223.3 million, up from $206.7 million in the second quarter. Third quarter GAAP and non-GAAP diluted earnings per share (EPS) were $0.45 and $0.96, respectively.

“Third quarter revenue was up eight percent sequentially, with growth across all major product categories, and following the ten percent sequential increase we realized in the second quarter,” said Tyson Tuttle, CEO of Silicon Labs. “Despite macro headwinds, ongoing trade policy uncertainties and current semiconductor industry market conditions, we are pleased to deliver two consecutive quarters of strong revenue growth and a return to target operating model profitability.” 

Third Quarter Financial Highlights

IoT revenue increased to a record $129 million, up 4% sequentially and 3% year-on-year.

Infrastructure revenue increased to $45 million, up 3% sequentially and down 14% year-on-year.

Broadcast revenue increased to $34 million, up 30% sequentially and down 5% year-on-year.

Access revenue increased to $15 million, up 23% sequentially and down 10% year-on-year.

On a GAAP basis:                                                                                         

GAAP gross margin was 60.1%.

GAAP R&D expenses were $63 million.

GAAP SG&A expenses were $48 million.

GAAP operating income as a percentage of revenue was 10.7%.

GAAP diluted earnings per share were $0.45.

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

Non-GAAP gross margin was 60.2%.

Non-GAAP R&D expenses were $49 million.

Non-GAAP SG&A expenses were $38 million.

Non-GAAP operating income as a percentage of revenue was 21.1%.

Non-GAAP diluted earnings per share were $0.96.

Product Results

Launched a new portfolio of pre-certified Series 2 wireless modules to simplify the development of smart LED lighting, home automation and industrial IoT applications.

Announced a collaboration with Allegion, a pioneer in security solutions, to expand IoT wireless capabilities to security products for smart homes and commercial buildings.

Announced the industry’s broadest portfolio of automotive grade timing solutions including AEC-Q100-qualified clock generators, buffers and PCIe devices.

Introduced the Si834x isolated smart switch family designed to optimize performance in harsh industrial environments while offering best-in-class protection and diagnostic reporting features.

Enhanced Silicon Labs’ Si479xx automotive tuner family with software-defined radio technology addressing the market need to support all global digital radio standards with a common platform.

Business Highlights

Hosted the Z-Wave Alliance’s Fall Summit in Austin, convening members, partners and thought leaders for a series of presentations, panels and workshops on the future of Z-Wave technology and the smart home market.

Announced the acquisition of Qulsar’s IEEE 1588 precision time protocol (PTP) software and module assets enabling Silicon Labs to address the fast-growing IEEE 1588 market with turnkey, carrier-grade solutions simplifying integration and accelerating time to market for a wide range of applications.

Awarded the Chamberlain Group’s “Innovation and Technology Solutions” supplier award.

Added Megan Lueders to Silicon Labs’ executive team as Chief Marketing Officer to lead the company’s global marketing team responsible for brand management, sales pipeline acceleration and customer experience.

Business Outlook

The company expects fourth quarter revenue to be in the range of $217 to $227 million, with Infrastructure up, IoT flat, and a decline in Broadcast and Access, and estimates the following:

On a GAAP basis:

GAAP gross margin at approximately 60.3%.

GAAP operating expenses at approximately $113 million.

GAAP effective tax rate of 8.0%.

GAAP diluted earnings per share between $0.33 and $0.43.

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

Non-GAAP gross margin at approximately 60.5%.

Non-GAAP operating expenses at approximately $90 million.

Non-GAAP effective tax rate at 11.5%.

Non-GAAP diluted earnings per share between $0.84 and $0.94. The USA based company Silicon Laboratories Inc. moved with change of 3.09% to $110.21 with the total traded volume of 639686 shares in recent session versus to an average volume of 288.96K. The stock was observed in the 5 days activity at 0.65%. The one month performance of stock was -1.14%. SLAB’s shares are at -1.83% for the quarter and driving a 33.14% return over the course of the past year and is now at 39.84% since this point in 2018.  Right now the stock beta is 1.51. The average volatility for the week and month was at 3.21% and 2.99% respectively. There are 43.94M shares outstanding and 42.52M shares are floated in market.

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