Silicon Laboratories Inc (SLAB) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst ...

In This Article:

  • Revenue: $178 million for the March quarter, up 7% sequentially and 67% year over year.

  • Industrial and Commercial Revenue: $96 million, up 8% sequentially and 47% year over year.

  • Home and Life Revenue: $82 million, up 5% sequentially and 99% year over year.

  • Gross Margin: GAAP gross margin at 55%; non-GAAP gross margin at 55.4%.

  • Operating Expenses: GAAP operating expenses were $130 million; non-GAAP operating expenses were $105 million.

  • Operating Loss: GAAP operating loss of $32 million; non-GAAP operating loss of $7 million.

  • Net Loss Per Share: GAAP loss per share of $0.94; non-GAAP loss per share of $0.08.

  • Cash and Investments: Ended the quarter with $425 million in cash, cash equivalents, and short-term investments.

  • Operating Cash Flow: Positive operating cash flow of $48 million for the March quarter.

  • Inventory: Internal inventory reduced by $22 million, ending at $83 million; days of inventory on hand improved to 94 days.

  • Revenue Guidance for June Quarter: Expected to be in the range of $185 million to $200 million, implying 32% year-over-year growth at the midpoint.

  • Gross Margin Guidance for June Quarter: Expected to be in the range of 55% to 57% for both GAAP and non-GAAP.

  • Non-GAAP Earnings Per Share Guidance: Expected to be in the range of $0.19 to a loss of $0.01.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Silicon Laboratories Inc (NASDAQ:SLAB) reported strong first-quarter results with both sequential and year-over-year revenue growth across its business units.

  • The Home and Life business nearly doubled year-over-year, driven by connected healthcare and smart home applications.

  • The Industrial and Commercial business grew significantly, with high single-digit sequential growth and double-digit year-over-year growth.

  • The company has successfully diversified its supply chain, minimizing the impact of geopolitical shifts and tariffs.

  • Silicon Laboratories Inc (NASDAQ:SLAB) introduced new products, including the BG29 family of Bluetooth low-energy SoCs, enhancing its IoT offerings.

Negative Points

  • The macroeconomic environment remains uncertain, which could impact future performance.

  • Despite revenue growth, the company reported a GAAP operating loss of $32 million and a non-GAAP operating loss of $7 million.

  • Channel inventory levels are below the target, indicating potential supply chain challenges.

  • The company is still navigating the potential indirect impacts of tariffs on global economic demand.

  • There is ongoing uncertainty regarding global trade policies, which could affect customer behavior and demand.