Silicon Labs’ gains clouded by forecast
After improving its results for 2nd quarter, Austin company underwhelms with its outlook
Silicon Laboratories Inc. reported record second-quarter financial results Wednesday, but that wasn’t enough to please investors, who sent the company’s stock price lower.
The Austin-based chip company’s revenue forecast for the current quarter — between $136 million and $141 million — was slightly less than analysts were expecting.
Silicon Labs, which makes sales in a wide variety of markets, said it made a profit of $21 million, or 44 cents a share, on revenue of $134.6 million during the three-month period that ended July 3. Excluding one-time items, the company reported second-quarter earnings of 72 cents per share.
The revenue figure —which represents a second-quarter record for Silicon Labs — compares with revenue of $104.2 million in the same three months last year, for which the company booked a profit $9.7 million, or 21 cents per share.
Chief executive Necip Sayiner said his company’s revenue over the past four quarters topped the half-billion-dollar mark, adding that he expects more growth ahead.
“We believe the company will continue on its path to sustained top-and bottom-line growth,”
he said, referring to revenue and profit.
But investors sent the stock price downward. Silicon Labs’ stock closed at $41.27 a share, down $1.48, or 3.5 percent.
Ian Ing, an analyst with Gleacher & Co., said he is concerned that Silicon Labs’ promising sales of TV tuner chips may face price-cutting pressure from competitors and that the company’s shipments of FM chips to cell phone makers could continue to decline.
“Although we do not dispute (Silicon Labs’) talents and ambition, we remain on the sidelines” until its TV tuner business grows larger, Ing wrote in a report.
Silicon Labs employs 800 people worldwide and continues to hire people.
The company is opening up a second floor at its office building at 200 W. Cesar Chavez St. for more workers. Silicon Labs’ space available downtown meets the company’s growth needs “for the next few years,” Sayiner said.
“We are continuing to grow and add head count and invest in the business,” he said. “We are getting good traction in our markets and adding new products and new customers.
“We are still having fun,” Sayiner said. “What’s not to like?”
Necip Sayiner ‘We are still having fun’ at Silicon Labs, CEO says in summarizing company’s plans for products, growth.