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.

Warning! GuruFocus has detected 5 Warning Signs with SLAB.

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.

Story Continues

Q & A Highlights

Q: How are you thinking about the September quarter and the second half of the year given the current uncertainty? A: R. Matthew Johnson, CEO: We are only guiding a quarter at a time, but all indicators such as customer forecasts, bookings, and inventory levels are behaving well. We are not relying on broad market strength but rather on design win ramps to drive growth.

Q: Can you explain the unexpected performance between the Home and Life and Industrial and Commercial segments? A: Dean Butler, CFO: There was a timing change between the segments. Home and Life nearly doubled year-over-year, while Industrial and Commercial grew 47%. The metering business, especially in India, ramped faster than anticipated.

Q: What is your strategy for channel inventory in the June quarter? A: Dean Butler, CFO: We aim to increase channel inventory to above 50 days but below 60 days. We plan to gradually return to our target level of 70-75 days over several quarters.

Q: How much of your revenue is driven by new products versus broad-based products? A: R. Matthew Johnson, CEO: A majority of the incremental revenue is from new design win ramps. Pricing is not meaningfully different, and we expect sequential revenue growth and gross margin progression.

Q: Are the three new segments (shelf label, glucose meter, smart meter) still expected to represent significant revenue growth? A: R. Matthew Johnson, CEO: Yes, these areas are progressing well, with additional growth vectors like matter, Wi-Fi, and AI/ML also contributing. The blood glucose application is expected to be a 10% revenue driver.

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

This article first appeared on GuruFocus.

View Comments