Silicon Laboratories Inc (SLAB) Reports Q3 2023 Earnings Amidst Challenging Market Conditions
Silicon Laboratories Inc (NASDAQ:SLAB) reported Q3 2023 earnings on November 1, 2023.
The company achieved solid results in a challenging market environment.
SLAB expects Q4 revenue to be between $70 to $100 million.
Record design win performance and advancements in industry-leading platform position the company for future growth.
Silicon Laboratories Inc (NASDAQ:SLAB), a leader in secure, intelligent wireless technology, announced its financial results for the third quarter ending September 30, 2023. Despite a weak demand environment and challenging end market visibility, the company managed to exceed the mid-point of its guidance for revenue and EPS.
Financial Highlights
On a GAAP basis, the company reported revenues of $203.76 million. The gross profit stood at $119.025 million, with operating income at $12.217 million. The net income was reported at $10.348 million, translating to earnings per share (EPS) of $0.32.
On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items, the company reported a gross profit of $119.235 million, operating income of $24.56 million, and net income of $19.973 million, resulting in an EPS of $0.62.
Business Outlook
For the fourth quarter, Silicon Laboratories Inc (NASDAQ:SLAB) expects revenue to be between $70 to $100 million. On a GAAP basis, the company estimates a gross margin of 53% and operating expenses of $123 million. On a non-GAAP basis, excluding the impact of stock compensation, amortization of acquired intangible assets, and certain other items, the company estimates operating expenses of $94 million.
Balance Sheet Overview
As of September 30, 2023, the company reported total assets of $1.475 billion, with total liabilities at $215.14 million. The total stockholders' equity stood at $1.259 billion. The company's cash and cash equivalents were reported at $159.928 million.
Company's Commentary
President and Chief Executive Officer at Silicon Labs, Matt Johnson, commented on the results,
The Silicon Labs team executed well in the third quarter, driving revenue and EPS that exceeded the mid-point of our guidance. The current demand environment remains quite weak as we navigate this cyclical inventory correction, and end market visibility continues to be challenging. That said, we are pleased with our record design win performance in the quarter and continued advancements in our industry-leading platform. We believe this positions us well for growth and higher earnings power when the market recovers."
The company will host an earnings conference call to discuss the quarterly results and answer questions. A replay will be available through December 1, 2023.
Explore the complete 8-K earnings release (here) from Silicon Laboratories Inc for further details.
This article first appeared on GuruFocus.
