This article was originally published on ETFTrends.com.
Leading the sector, Silicon Labs shares surged 17.4% Wednesday. SLAB makes up 3.4% of XSD's underlying portfolio and 0.6% of SOXX. XSD follows a more equal-weighting indexing methodology, so its portfolio takes on a heavier tilt toward smaller companies, compared to SOXX's traditional cap-weighting methodology that leans toward larger players.
Chipmaker Silicon Laboratories revealed first-quarter net income of $5.4 million or 12 cents per share, or 59 cents per share after adjusting for one-time gains and costs, Statesman reports.
"We exited 2018 with strong design win momentum and leading positions in key secular growth markets," Tyson Tuttle, CEO of Silicon Labs, said in a note. "Despite macro turbulence, Q1 bookings were robust, signaling a Q2 rebound. We believe we are well-positioned to outperform the market."
Looking ahead, the company expects second quarter revenue to be in the range of $202 to $212 million, supported by sequential growth in IoT, Broadcast and Access.
“We are seeing a resumption of growth in the UK smart metering market, an uptick in ordering from high-volume lighting customers and customer ramps in the smart home,” Tuttle said in a call with analysts and investors.
Silicon Labs’ Internet of Things division saw gains in wireless, which helped offset weakness in microcontroller units.
“We remain bullish about our product portfolio, the markets we participate in and the trends they address,” Tuttle added. “Our focus on long-term, high-quality, diverse strategic markets including the IoT, green energy and high-speed data communications will continue to drive revenue growth.”
Looking at the broader sector, Ruben Roy, MKM Partners managing director, and Stacy Rasgon, analyst at Bernstein, also argued for growth and profitability in the semiconductor space ahead, CNBC reports.
For more information on the tech sector, visit our technology category.
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