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Silicon Labs posts record revenue, stock surges [Austin American-Statesman]
[October 23, 2014]

Silicon Labs posts record revenue, stock surges [Austin American-Statesman]


(Austin American-Statesman (TX) Via Acquire Media NewsEdge) Oct. 23--Silicon Laboratories Inc. reported record third-quarter revenue Thursday and its stock surged on the news.

Revenue for the Austin-based chipmaker was $158.1 million, up from $154.9 million in the second quarter -- which was also a record. Analysts expected $154.7 million for the third quarter, according to analysts surveyed by Zacks Investment Research.



Silicon Labs reported profit of $5.6 million in the quarter.

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.


"Our multi-year investment strategy in our (microcontroller), wireless, sensor, power and timing products is driving strong results in our two largest markets, the Internet of Things and Internet Infrastructure, where we have continued to gain share and see exciting prospects for growth," said CEO Tyson Tuttle.

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' products are involved in items like energy meters and home security systems, which are part of home services rollouts from companies like Comcast and Time Warner. The company's products are also included in wearable, Internet-connected devices.

Silicon Labs employs about 1,100 people worldwide, with just over half of them in Austin.

On a per-share basis, the company said it had net income of 13 cents. Earnings, adjusted for stock option expense and costs related to mergers and acquisitions, were 52 cents per share.

The results exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks was for earnings of 48 cents per share.

For the current quarter ending in December, Silicon Labs expects its per-share earnings to range from 43 cents to 49 cents.

The company said it expects revenue in the range of $155 million to $161 million for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $151.7 million.

Silicon Labs shares have declined 11 percent since the beginning of the year. The stock has dropped slightly more than 8 percent in the last 12 months.

But at midday Thursday, the company's stuck was surging -- up more than 13 percent to $43.80.

Additional information from the Associated Press ___ (c)2014 Austin American-Statesman, Texas Visit Austin American-Statesman, Texas at www.statesman.com Distributed by MCT Information Services

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